Heartland Group Holdings Limited/Announcement

Heartland FY22 results and NZ$200 million equity raising

Full Year Results22 August 2022HGHFinancials

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Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
NZX/ASX release
23 August 2022

Heartland announces record FY2022 profit, and equity raising to
retire bridge debt and fund growth ambitions for existing business

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to announce a net profit after tax
(NPAT) of $95.1 million for the financial year ended 30 June 2022 (FY2022), an increase of $8.1 million (9.3%)
compared with the financial year ended 30 June 2021 (FY2021)
1
. On an underlying
2
basis, FY2022 NPAT was
$96.1 million, an increase of $8.2 million (9.3%) compared with the FY2021 underlying NPAT.

Heartland is also pleased to announce a $200 million equity raise comprising a $130 million fully
underwritten placement and a $70 million non-underwritten share purchase plan to shareholders in New
Zealand and Australia, with the ability for Heartland to accept oversubscriptions at its discretion. Proceeds
will be used to repay a A$158 million acquisition finance facility outstanding in relation to the recent
acquisition of StockCo Holdings 2 Pty Ltd and StockCo Australia Management Pty Limited (together, StockCo
Australia), and to provide additional growth capital for Heartland’s existing businesses in Australia and New
Zealand.

Highlights for FY2022

‒ NPAT of $95.1 million, up 9.3% ($8.1 million). Underlying NPAT of $96.1 million, up 9.3% ($8.2 million)
on FY2021 underlying NPAT.
‒ One-off items had a $0.9 million net
3
impact on NPAT.
‒ Gross finance receivables (Receivables)
4
of $6.2 billion, up 15.3%
5
($765.9 million).
‒ Return on equity (ROE) of 12.1%, up 21 basis points (bps). Underlying ROE of 12.6%, up 59 bps.
‒ Net interest margin (NIM)
6
of 4.16%, down 19 bps.
‒ Net interest income (NII) of $250.1 million, up 7.1%.
‒ Cost to income (CTI) ratio of 43.6%, down 3.2 percentage points (pps). Underlying CTI ratio of 42.5%,
down 2.3 pps, and CTI ratio of 41.9% for the second half of FY2022 (2H2022).
‒ Impairment expense as a percentage of average receivables decreased from 0.31% in FY2021 to 0.25%
in FY2022.
7
Underlying impairment expense of 0.29% benefitted from an improved book quality.
‒ FY2022 final dividend of 5.5 cents per share (cps), taking FY2022 total dividend to 11.0 cps – flat on
FY2021, with a payout ratio consistent with the average over the last three years.
‒ Earnings per share (EPS) of 16.1 cps, up 1.2 cps.
‒ Completed the acquisition of StockCo Australia on 31 May 2022.

1
All comparative results are based on the audited full year consolidated financial statements of Heartland and its
subsidiaries (the Group) for FY2021.
2
Underlying results exclude the impacts of StockCo Australia and one-offs. Refer to Profitability on page 5 for a
summary of reported and underlying FY2022 results. A detailed reconciliation between reported and underlying
financial information, including details about FY2022 one-offs, is set out in Appendix 3 on page 47 of the accompanying
FY2022 investor presentation. General information about the use of non-GAAP financial measures is set out on page 3
of that presentation.
3
Includes tax impact on one-offs.
4
Receivables include Reverse Mortgages and StockCo Australia.
5
Excludes the impact of StockCo Australia and changes in foreign currency exchange (FX) rates.
6
NIM is calculated based on average gross interest earning assets and is adjusted for the impact of StockCo Australia.
7
Reported impairment expense includes a $1.6 million benefit from the release of the $9.6 million COVID-19 Overlay,
net of a new $8.0 million Economic Overlay.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
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‒ 120% increase in users of Heartland Bank Limited’s (Heartland Bank) mobile app.
‒ Heartland Bank awarded Canstar Savings Bank of the Year 2022 (fifth consecutive year), and awards for
its Direct Call, 32 Day Notice Saver and 90 Day Notice Saver accounts.
‒ New Zealand Reverse Mortgages awarded Consumer Trusted Accreditation (fifth consecutive year), and
helped its 20,000
th
customer.
‒ Australian Reverse Mortgages business increased market share to 33.1%.
8

Strategic vision

Heartland remains committed to its strategic vision to create sustainable growth and differentiation through
best or only products delivered through scalable digital platforms. Fundamental to the execution of
Heartland’s vision are the following four strategic pillars:
1. Business as Usual Growth (reported on in Business performance from page 7)
2. Frictionless Service at the Lowest Cost
3. Expansion in Australia
4. Acquisitions.

Frictionless Service at the Lowest Cost
Heartland’s focus on providing best or only products has evolved to providing those products through
scalable digital platforms. This focus on digitalisation allows Heartland to deliver exceptional service and
value for its customers. Reduced customer friction creates scale without costly processes, while delivering
better service.

Through FY2022, Heartland developed new functionality for its digital platforms to enable increased self-
service by customers. The number of users on Heartland Bank’s mobile app increased by 120% in FY2022,
and in June 2022, the average number of inbound calls per customer to Heartland Bank’s main customer
service phone lines reduced by more than 10% compared with June 2021. In addition, Heartland Finance
recently launched its online customer portal, allowing Australian Reverse Mortgage customers to view their
loan balance, cash reserve and redraw balances, and current interest rate. The Heartland Finance Mobile
App launched soon after in August 2022.

A greater degree of self-service functionality development is planned for the financial year ended 30 June
2023 (FY2023), to deliver enhancements to Heartland’s existing product platforms in New Zealand and
Australia.

CTI ratio, as a measure of the efficiency of digitalisation, reduced from 44.8% in FY2021 to 42.5% in FY2022
on an underlying basis. Despite the possibility of volatility in the short term, Heartland is committed in the
long term to reductions in the CTI.

Heartland has committed a significant degree of technology investment through FY2022, and considers it is
at peak investment phase due to the upgrade of its core banking system. This upgrade is expected to provide
Heartland with a stable long-term platform, leading to improved customer service.

Expansion in Australia
Heartland’s focus on expansion in Australia is on:
1. growing its existing Australian Reverse Mortgages business;
2. growing Livestock Finance following the recent acquisition of StockCo Australia; and

8
Based on Australian Prudential Regulation Authority (APRA) ADI Property Exposure and Heartland Finance data as at
31 March 2022.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
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3. seeking other opportunities to expand Heartland’s best or only strategy into Australia.
In FY2022, Heartland solidified its position as the leading provider of reverse mortgages in Australia, with an
origination share of 74%
9
. Additionally, of the $3.3 billion of reverse mortgage loans reported in the
Australian market, Heartland’s market share was 33.1% at 31 March 2022 (up from 29.3% at 31 March
2021)
10
. The Australian market remains a significant opportunity for growth for Heartland, with the potential
addressable market for reverse mortgages estimated to be $10-15 billion.
11

Acknowledging increasing cost of living pressures, Heartland adjusted various specifications for its Well-Life
Loan and Reverse Mortgage products to increase the eligible market. In January 2022, Heartland also
launched Express Reverse Mortgages, a new streamlined loan targeting homeowners aged 60 to 70.

Acquisitions
StockCo Australia
On 31 May 2022, Heartland completed its acquisition of StockCo Australia, a leading livestock finance
business based in Brisbane, Australia. Heartland’s focus is to build on StockCo Australia’s position as a
market-leading provider of specialist livestock finance for cattle and sheep farmers across Australia. It
intends to do this by delivering growth capital, digital enhancements, and expanding into new market
segments. Read more about the acquisition of StockCo Australia on page 9.

Further opportunities for growth in Australia
Heartland is continuing to look for further opportunities in Australia as a key growth market, and has been
exploring opportunities to establish or acquire an authorised deposit-taking institution (ADI) in Australia.
Becoming a bank through an ADI in Australia would make possible a number of benefits:
- access to a deep and efficient pool of funding to support ongoing growth;
- potential uplift in margin, to the extent that retail funding rates are less than wholesale rates; and
- providing a platform to extend Heartland’s best or only strategy into Australia.

The aim is to create the potential for a digital bank which, once Heartland assets are transferred into it,
would be profitable. This, together with Heartland’s best or only strategy, provides the opportunity for a
differentiated proposition.

To this end, Heartland has entered into a non-binding memorandum of understanding (MoU) with Avenue
Hold Limited (Avenue Hold) in relation to the potential acquisition of Avenue Hold and its subsidiary Avenue
Bank Limited (Avenue Bank). Avenue Bank is a restricted ADI. This means Avenue Bank may conduct banking
business in Australia for a limited period and subject to specific restrictions. Avenue Bank is seeking to
progress to becoming a full ADI.

Any establishment or acquisition by Heartland of an ADI in Australia would be subject to regulatory
approvals.

Subject to regulatory approvals and transaction completion, Heartland’s existing businesses in Australia
would be transferred to sit in or under Avenue Bank, and this would be the vehicle for growth in Australia.

In accordance with the MoU, Heartland has made an initial subscription for A$5 million of capital in Avenue
Hold. Heartland’s due diligence review is continuing, as is negotiation of binding transaction documentation.
Completion of any transaction is expected to be conditional upon a number of matters (which may include
Heartland securing acquisition funding, Heartland being satisfied as to the likelihood of Avenue Bank
progressing to being a full ADI, Avenue Hold shareholder support of the transaction, receipt of all necessary

9
Based on APRA ADI Property Exposure and Heartland Finance data for the 12 months to 31 March 2022.
10
Based on APRA ADI Property Exposure and Heartland Finance data as at 31 March 2021 and 31 March 2022.
11
According to Deloitte at the 2021 Three Pillars Forum.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
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regulatory approvals (including from APRA and the Reserve Bank of New Zealand (RBNZ)), and the absence
of any material adverse change).

Any requirements or conditions of regulatory approvals (including capital and liquidity requirements for the
bank and relevant business of Heartland held below Heartland’s top-level holding company in Australia,
Heartland Australia Holdings Pty Limited (HAH)) will:
1. become known only as engagement with APRA and RBNZ progresses; and
2. be relevant to Heartland’s decision to proceed with the transaction.

It is currently expected that completion of any acquisition would take place no earlier than the last quarter
of FY2023, and possibly not until the first half of the financial year ending 30 June 2024 (FY2024). The
consideration payable by Heartland on completion is expected to be A$49 million, subject to adjustments.

For regulatory reasons, Heartland would be required to hold any ADI in Australia through an Australian
incorporated non-operating holding company (NOHC) which is approved and regulated by APRA. It is
currently anticipated that HAH would be the appropriate vehicle to apply to APRA for authority to act as a
NOHC. To pre-position HAH for this opportunity, Heartland is seeking the consent of the RBNZ for HAH to
also act as the NOHC of Heartland Bank in New Zealand. This would not result in any change to Heartland
Bank’s beneficial ownership. This engagement with RBNZ is at an early stage.

Operating environment

The current operating environment continues to present challenges, with heightened geopolitical tensions
and rising inflation contributing to increasing cost of living and rapidly rising interest rates.

Whilst businesses learned to operate with COVID-19 present, the flow-on effects from border restrictions
and restrained supply chains continued in FY2022. New Zealand and Australia’s borders remained largely
closed to international travel until 2H2022. This has put pressure on industries, businesses and consumers
on both sides of the Tasman, and resulted in higher transport and freight costs being passed on to
consumers.

Increasing cost of living is evident in global inflation rates. Both New Zealand and Australia inflation rates are
currently the highest for 30 years, at 7.3% and 6.1% respectively.
12
As a result, interest rates have risen
rapidly – the RBNZ recently increased the Official Cash Rate to 3% in August 2022, its highest level since
2015, with further increases expected.

Heartland remains focused on ensuring support is provided to customers who may be struggling in the
current environment. Notwithstanding these pressures, Heartland’s loan portfolios have performed strongly.
Underlying impairment expense ratio was 29 bps in FY2022, 2 bps lower than in FY2021.

Heartland’s COVID-19 Overlay of $9.6 million, taken in the financial year ended 30 June 2020 (FY2020), has
been released in full. The Overlay was taken to provide a buffer against any future losses that the
uncertainty of COVID-19 may have given rise to. Heartland now has more certainty around those impacts
than in 2020, and its lending portfolios have benefited from improved quality as the portfolio mix has moved
towards higher quality and lower risk assets. The Overlay has not been utilised by Heartland, and there is no
longer any basis for retaining it. However, given the above-mentioned uncertainty and economic pressures
facing businesses, it has been considered prudent to create an Economic Overlay of $8.0 million. The
Economic Overlay will provide more resilience in areas such as Business Relationship lending and Asset
Finance which have larger loan sizes.

12
Inflation rates reflect Consumer Price Index figures for the 12 months ended 30 June 2022.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
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Risk

Heartland’s portfolio mix has continued to move towards higher quality and lower risk assets.

For example, Heartland’s Reverse Mortgage portfolios in New Zealand and Australia have grown
considerably and continue to perform very strongly. Heartland’s Home Loans portfolio has grown
significantly – conservative lending standards mean that this book has performed very strongly and is
expected to be highly resilient to house price reductions and other potential economic shocks. Livestock,
which has historically proven to be a resilient portfolio, has also grown significantly. Motor has not only
grown, but has also benefited from improved quality as the volume of new car business in that book
continues to increase. At the same time, Heartland’s Personal Loans portfolio has reduced.

Heartland’s total (collective and specific) provisions as at 30 June 2022 were $52.0 million, with a coverage
ratio of 1.24%. This is a reduction from the coverage ratio of 1.61% as at 30 June 2021, but is reflective of the
improved quality and mix of Heartland’s portfolios (including the growth of online Home Loans and Livestock
Finance, and the reduction of the Harmoney Corp Limited (Harmoney) personal loans channel). This
improved quality is evidenced by the percentage of Heartland’s receivables that attract a lifetime expected
credit loss provision reducing from 6.32% as at 30 June 2021, to 3.92% as at 30 June 2022.
13

Financial results

Profitability
NPAT was $95.1 million, an $8.1 million (9.3%) increase on FY2021. Underlying NPAT was $96.1 million, a
$8.2 million (9.3%) increase on FY2021.

ROE was 12.1%, up 21 bps from FY2021. Underlying ROE was 12.6%, up 59 bps from FY2021.

EPS was 16.1 cps, up 1.2 cps from FY2021. Underlying EPS was 16.3 cps, also up 1.2 cps from FY2021.
FY2022 reported results include StockCo Australia earnings contribution since the completion of the
acquisition on 31 May 2022, and one-off items which should be considered when analysing the underlying
result.
14

Significant one-off items included in Heartland’s FY2022 reported results are outlined below.
1. Hedge accounting impacts: A $16.7 million gain was recognised in relation to derivatives that were de-
designated from hedge accounting relationships. Heartland’s hedging strategy was economically very
effective throughout FY2022, with interest rate swaps utilised to hedge fixed lending with tenors
greater than 12 months to 3-month Bank Bill Reference Rate (BKBM), thus limiting volatility to future
interest rate changes. However, 3-month BKBM ceased to be an identifiable risk for hedging
relationships during FY2022. This resulted in balances held in the Cash Flow Hedge Reserve against
these hedge relationships having to be released to the profit and loss for the 30 June 2022 period.

13
Heartland is not required to hold provisions in respect of its Reverse Mortgage portfolios, and so the coverage ratio
does not include those portfolios. Heartland carries the Reverse Mortgage portfolios at fair value, which is currently
determined to be the face value of those loans. There is potential for loss from those loans, however it is immaterial in
the context of the face value of the loans, and does not impact Heartland’s determination that fair value of those loans
is their face value.
14
Refer to Appendix 3 on page 47 of the accompanying FY2022 investor presentation for an exhaustive list of FY2022
one-offs and a detailed reconciliation between reported and underlying financial information.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
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2. Impairment provisions: The $9.6 million COVID-19 Overlay, originally raised in FY2020, remained
entirely unutilised and was released in full. However, given the uncertainty of the current operating
environment, it has been considered prudent to create a new $8.0 million Economic Overlay.

3. Fair value loss on equity investment in Harmoney: A $12.7 million net fair value loss was recognised on
investment in Harmoney shares during FY2022. The fair value as at 30 June 2022 takes into
consideration the closing market price of Harmoney shares on the ASX of A$0.71.

The impact of one-off items on the respective financial metrics is outlined in the table below.

Reported Underlying
FY2022 FY2021 Movement FY2022 FY2021 Movement
NOI
15
($m) 267.6 251.2 16.4 262.0 247.1 14.9
Operating expenses ($m) 116.8 117.7 (0.9) 111.4 110.8 0.6
NPAT ($m) 95.1 87.0 8.1 96.1 87.9 8.2
NIM 4.05% 4.35% (29 bps) 4.16% 4.35% (19 bps)
NIM excl. liquid assets
16
4.35% 4.69% (33 bps) 4.47% 4.69% (22 bps)
CTI ratio 43.6% 46.8% (3.2 pps) 42.5% 44.8% (2.3 pps)
Impairment expense ratio 0.25% 0.31% (6 bps) 0.29% 0.31% (2 bps)
ROE 12.1% 11.9% 21 bps 12.6% 12.0% 59 bps
EPS 16.1 cps 14.9 cps 1.2 cps 16.3 cps 15.1 cps 1.2 cps

Income
Total NOI was $267.6 million, an increase of $16.4 million (6.5%) from FY2021.
Underlying NOI was $262.0 million, $14.9 million (6.0%) higher than in FY2021. This was largely due to a
$14.7 million (6.3%) increase in NII, driven by $599.5 million (11.2%) higher average interest earning assets in
FY2022 than in FY2021, and a 19 bps decrease in underlying NIM compared with FY2021. Underlying other
operating income remained stable year-on-year.

Expenses
Operating expenses were $116.8 million, a decrease of $0.9 million (0.8%) on FY2021. Excluding the impact
of one-offs, the underlying operating expenses were $0.6 million (0.6%) higher compared with FY2021.
Higher underlying operating expenses were primarily due to a $2.8 million (19.2%) increase in IT and
communication expenses, driven by software amortisation and licencing costs as a result of continued
investments in technology and digital capabilities.

The CTI ratio decreased to 43.6%, down 3.2 pps compared with FY2021. The underlying CTI ratio decreased
2.3 pps to 42.5%.

Impairment expense
Impairment expense was $13.8 million, $1.2 million (7.7%) down on FY2021. This includes the net benefit of
$1.6 million due to the release of Heartland’s $9.6 million COVID-19 Overlay, partially offset by the newly

15
Net operating income (NOI) includes fair value gains/losses on investments.
16
Calculated based on average gross interest earning assets excluding liquid assets.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
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created $8.0 million Economic Overlay. Excluding this and the impacts of the acquisition of StockCo Australia,
underlying impairment expense was $15.7 million, $0.7 million (4.9%) higher than in FY2021.

While the Receivables portfolio recorded strong growth during the year, impairment expense benefitted
from an improved book quality as a result of the continued tilt of the portfolio mix towards lower risk assets.

Financial position
Total assets increased by $1,407.2 million (24.8%) during FY2022, driven by a $1,177.5 million (23.5%)
increase in Receivables.

On an underlying basis, which excludes the impacts of the StockCo Australia acquisition and changes in FX
rates, Receivables grew $765.9 million (15.3%) in FY2022. The unintended effects of changes to the New
Zealand Credit Contracts and Consumer Finance Act 2003 and the Credit Contracts and Consumer Finance
Regulations 2004 (CCCFA), introduced on 1 December 2021, initially resulted in a temporary slowdown,
particularly in the Motor and Home Loans portfolios. Despite this, growth momentum recovered and strong
growth was experienced across the majority of Heartland’s portfolios. This was partly offset by the decrease
in the Harmoney personal loans channel.

Borrowings
17
increased by $1,306.6 million (26.9%). On an underlying basis, which excludes the impacts of
the StockCo Australia acquisition, borrowings increased by $804.9 million (16.5%), with deposits increasing
by $409.1 million (12.8%), while other borrowings increased by $395.8 million (23.6%) during FY2022. See
further information under Funding and liquidity on page 10.

Net assets increased by $47.0 million to $808.7 million. Net tangible assets (NTA) decreased by $111.7
million to $566.8 million, primarily due to growth in intangible assets as a result of the StockCo Australia
acquisition, resulting in an NTA per share of $0.96 (30 June 2021: $1.16).

Business performance

Asset Finance
Asset Finance NOI was $30.6 million, an increase of $2.1 million (7.5%) compared with FY2021.
Asset Finance Receivables increased $62.6 million (11.0%) to $633.6 million. Despite the impacts of COVID-
19, new business growth in FY2022 exceeded expectations as Heartland continues to build its intermediated
partnership strategy and delivery processes. Demand from the logistics and other productive sectors
remained resilient through variable conditions, and activity remains focused in these segments. Significant
market share opportunities exist and will be pursued in FY2023.

Business
Business includes floorplan lending to vehicle retailers and wholesale facilities to other lenders. The portfolio
includes what was previously known as Business Relationship.
Business NOI was $30.9 million, an increase of $4.9 million (18.6%) compared with FY2021.
Business Receivables increased $74.3 million (13.4%)
18
to $629.4 million. Growth in facility utilisation rates
has been driven by strong underlying demand in motor vehicle sales combined with erratic shipping
schedules. Heartland has onboarded new customers in this segment, and supported the growth strategies of
wholesale borrowers in other sectors.

17
Includes retail deposits and other borrowings.
18
Excluding the impact of changes in FX rates.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
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Open for Business
Open for Business (O4B) is Heartland’s first digital platform that provides unsecured loans to the small-to-
medium enterprise (SME) sector, with online approval possible within one minute.

O4B NOI was $13.7 million, a decrease of $0.8 million (5.8%) compared with FY2021.

O4B Receivables decreased $3.3 million (2.3%)
16
to $141.2 million. COVID-19 interrupted momentum in
Heartland’s O4B target market more severely than in other Business segments. Although there were signs of
recovery early in FY2022, the arrival of the Omicron COVID-19 variant adversely impacted sector demand
again. O4B growth in FY2023 will remain challenging as the SME sector struggles to accommodate difficult
macro-economic, logistical, and labour conditions.

Motor Finance
Motor Finance NOI was $73.1 million, an increase of $3.9 million (5.6%) compared with FY2021. Motor
Finance Receivables increased $90.8 million (7.0%) to $1.38 billion.

Growth was mainly from the Motor dealer book via car dealerships, brokers and partnerships such as Kia
Finance, Jaguar/Land Rover Financial Services, and Peugeot/Citroen (through Auto Distributors New Zealand
Limited (Auto Distributors) under the iOwn brand). Auto Distributors have also been appointed the
distributors for Opel which arrives in late September 2022.

Growth in FY2022 was hindered by COVID-19 and the unintended effects of changes to the CCCFA
introduced on 1 December 2021, which considerably reduced application automation rates and impacted
conversion rates. Since implementing a new process for premium customers, application automation rates
have started to increase.

Motor Finance portfolio performance returned to more normal levels in the last quarter of FY2022,
recording a 194% increase in growth on the previous quarter, and producing an annualised growth rate of
7.4% for the quarter.

Personal Lending
Personal Lending includes loans originated directly through Heartland Bank, and those originated by
Harmoney in New Zealand and Australia. Personal Lending NOI was $10.3 million, a decrease of $7.0 million
(40.4%) compared with FY2021.
Personal Lending Receivables decreased by $67.3 million (50.9%)
19
to $64.9 million. Harmoney Receivables
decreased by $94.9 million (75.6%)
19
, made up of a decrease in the New Zealand Harmoney channel of $58.3
million (76.0%) to $18.4 million, and a decrease in the Australian Harmoney channel of $36.6 million
(74.9%)
19
to $12.2 million.
Heartland had been in negotiations with Harmoney on proposed new wholesale facilities as Harmoney
moved its funding model from a peer-to-peer off-balance sheet model to wholesale securitised on-balance
sheet funding via warehouse structures. These negotiations ended in March 2022. Heartland’s Harmoney
personal loans channel is therefore running down.

From a risk perspective, Heartland is comfortable with the reduction in Personal Lending in the current
environment.

19
Excluding the impact of changes in FX rates.

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Home Loans
20

Home Loans NOI was $2.1 million (FY2021: $0.1 million). Home Loans Receivables increased $224.8 million
(450.8%) to $274.7 million.

Rising interest rates drove a high volume of applications in FY2022, as customers sought to lock in
competitive rates. Heartland’s rates were frequently market-leading across standard residential mortgage
products throughout the year.

Although growth in Q2 (1 October to 31 December 2021) was adversely impacted by the unintended effects
of the CCCFA changes, Q3 (1 January to 31 March 2022) advertising saw a return to rapid growth, with the
Home Loans book size increasing by $51.8 million. Heartland’s commitment to decision new loan
applications within 48 hours of receipt of all loan documentation has further disrupted a credit market in
which longer timeframes have traditionally prevailed. Heartland has also experienced strong customer
retention in a competitive market – the retention rate for customers whose fixed rates expired during
2H2022 was 91.1%.

Heartland Home Loans remains in a phase of rapid growth, and is targeting a book size of $495 million by the
end of FY2023.

Rural
Rural lending NOI was $30.2 million, a decrease of $2.0 million (6.1%) compared with FY2021.
Overall Rural portfolio Receivables increased by $102.5 million (17.5%) to $689.1 million. Livestock
Receivables increased by $62.3 million (57.0%) to $171.7 million, and Rural Receivables increased by $40.2
million (8.4%) to $517.4 million.

Heartland’s Livestock business enjoyed record growth in FY2022, resulting from an increase in customers,
and facility utilisation rates reaching a historic high. New and expanded partnership opportunities that were
developed in FY2022 are expected to flow positively into FY2023.

Heartland’s Sheep & Beef Direct platform has been a success story throughout FY2022, contributing 53% of
total Rural new business. The product produced consistent growth, which confirmed the market niche it was
developed for. FY2022 also saw the development of a similar product for dairy farmers, Dairy Direct, which is
expected to grow consistently with Sheep & Beef Direct.

StockCo Australia
On 31 May 2022, Heartland completed the acquisition of StockCo Australia. StockCo Australia specialises in
livestock finance for cattle and sheep farmers across Australia (74% cattle/26% sheep), with total assets of
A$358 million, and a leading position in the market, estimated to be A$7 billion.
21

The acquisition’s total consideration (which includes A$1.6 million of deferred consideration payable subject
to performance hurdles) was A$154.4 million, funded through a A$158 million bridge facility provided by a
major Australasian financial institution. At the same time, a new long-term syndicated securitisation
warehouse was executed, with A$300 million of senior funding provided by two major Australasian financial
institutions.

Heartland’s focus is to build on StockCo Australia’s position as a market-leading provider of specialist
livestock finance for cattle and sheep farmers across Australia.

20
Excludes legacy Retail Mortgages.
21
Based on Australia Bureau of Statistics total rural debt and StockCo Australia data.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
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Transaction costs of $1.2 million were expensed in FY2022, and StockCo Australia contributed $1.4 million to
FY2022 NPAT (excluding bridge finance costs). StockCo Australia is projected to contribute A$10 million to
A$12 million to FY2023 NPAT.

New Zealand Reverse Mortgages
New Zealand Reverse Mortgages NOI was $32.5 million, an increase of $8.1 million (33.4%) compared with
FY2021. Receivables increased $119.8 million (19.9%) to $721.3 million.

Growth was due to:
‒ strong new business particularly in 2H2022 (17.6% higher than in the first half of FY2022);
‒ increased awareness and acceptance of reverse mortgages as a solution to help older homeowners live
a more comfortable retirement;
‒ cost of living increases placing pressure on retirees and a Reverse Mortgage being a solution; and
‒ continued enhancement of the product and application process.

The outlook for New Zealand Reverse Mortgages remains positive, with the pipeline sitting well above the
previous corresponding period. As cost of living pressures continue and indebtedness in retirement
increases, greater awareness and acceptance of reverse mortgages is expected to lead to increased demand
through FY2023.

Australian Reverse Mortgages
Australian Reverse Mortgages NOI was $39.2 million, an increase of $3.0 million (8.2%) compared with
FY2021.

Australian Reverse Mortgages Receivables increased by $163.8 million (15.2%)
22
to $1.24 billion, driven
primarily by:
‒ the relaxation of COVID-19 lockdowns in Australia;
‒ growing acceptance of the use of reverse mortgages to age in place (i.e. for a person to remain in their
home as they age);
‒ promotion by the Australian Federal Government of its Home Equity Access Scheme, normalising equity
release options further; and
‒ targeted marketing to increase uptake and interest at key seasonal points across the year, leading to
record applications and settlements in key months.

Heartland Reverse Mortgages Australia received four awards in FY2022, including Infochoice’s Best Reverse
Mortgage, and Australian Mortgage Awards’ ‘Most Effective Digital Strategy – Lender’ Excellence Award for
its digital focus.

Funding and liquidity

Heartland increased borrowings by $1,306.6 million (26.9%) to $6,170.7 million, contributed to by increases
in New Zealand and Australia.

On an underlying basis, which excludes the impacts of the StockCo Australia acquisition, borrowings
increased by $804.9 million (16.5%) to $5,669.0 million.

New Zealand
Heartland Bank increased borrowings by $624.2 million (16.8%) to $4,346.6 million.

22
Excluding the impact of changes in FX rates.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
11
Deposits
23
grew $377.6 million (11.7%) during FY2022 to $3,597.1 million, which was driven primarily by the
launch of a 32 Day Notice Saver product early in the period and, more recently, a 90 Day Notice Saver
product.

During the period, Heartland Bank significantly increased the number of active users of the Heartland Mobile
App, providing an improved customer experience, and enabling employees to focus on providing higher
value service. Heartland Bank was also pleased to be awarded Canstar’s Savings Bank of the Year 2022 (for
the fifth consecutive year), and to receive Canstar awards for its Direct Call and Notice Saver accounts.

Term deposits decreased by $55.5 million (2.5%), while call deposits decreased by $73.1 million (7.6%)
during FY2022, with the call to total deposit ratio decreasing to 25% as at 30 June 2022 (30 June 2021: 30%).

Other borrowings increased by $246.6 million (49.0%), largely driven by increases in Heartland Bank’s
committed auto warehouse facility, whose limit was increased from $300 million to $400 million in
September 2021, with the amount drawn down increasing by $159.6 million.

Heartland Bank’s total liquidity remained stable, increasing by $6.4 million (1.0%) to $627.9 million, well in
excess of regulatory minimums. Regulatory liquidity ratios remained strong.

Heartland Bank’s capital position has progressively increased during FY2022, reflecting its continued strong
profitability and partial removal of the RBNZ restrictions on distributions. Heartland Bank’s regulatory capital
ratio was 13.49% as at 30 June 2022 (30 June 2021: 13.88%), well in excess of regulatory minimums, and
providing a strong platform for Heartland Bank to meet RBNZ’s future higher capital requirements. These
requirements are for a core capital ratio of 11.50% and a total capital ratio of 16.00% by 1 July 2028.

Australia
The Heartland Australia group (comprising Heartland Australia Holdings Pty Ltd and its subsidiaries)
increased borrowings by A$102.6 million (9.3%) to A$1,200.2 million.

The Heartland Australia group continues to successfully execute on its strategic funding programme to cater
for strong growth in its portfolios, with a further A$45 million Medium Term Note (MTN) issued in July 2021,
and a A$115 million MTN issued in May 2022 to refinance an existing A$100 million MTN and provide
additional funding for future growth, taking the aggregate outstanding issuance under Heartland Australia’s
MTN programme to A$280 million as at 30 June 2022. Additionally, a A$30 million tap into an existing A$45
million funding line, maturing in July 2024, was issued in August 2022, adding further diversity to the funding
base.

Maturity of reverse mortgage securitisation warehouses was extended by two and three years, and
aggregate senior limits were expanded by A$100 million, providing additional headroom to fund future
growth in the portfolio. This provides Heartland Australia group with access to A$1.35 billion of committed
funding in aggregate.

Further expansion of existing warehouse funding through increased senior limits and the introduction of
mezzanine funding is well advanced, and focus will continue to be on sourcing optimal long-term duration
matched funding.

23
Includes intercompany deposits received by Heartland Bank (30 June 2022: $4.6 million; 30 June 2021: $36.1 million).

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
12
Proposed equity raise

Heartland has announced a $200 million equity raise. The proceeds of the equity raise will be used to:
1. repay a A$158 million acquisition finance facility outstanding in relation to the recent acquisition of
StockCo Australia; and
2. provide additional growth capital for Heartland’s existing businesses in both Australia and New Zealand.

The equity raise will comprise a $130 million fully underwritten placement (Placement) and a non-
underwritten share purchase plan to shareholders in New Zealand and Australia to raise up to $70 million
(SPP), with the ability for Heartland to accept oversubscriptions at its discretion.

The Placement is fully underwritten by Jarden Partners Limited, and will be conducted today through a
bookbuild in which institutional and other selected investors in New Zealand, Australia and a limited number
of other jurisdictions will be invited to participate. The Placement has been fully underwritten at a fixed price
of $1.80 per new share, being a 12.8% discount to the ex-dividend adjusted last close price of $2.065 on 22
August 2022, and a 13.7% discount to the 5-day volume weighted average ex-dividend adjusted price of
Heartland shares on the NZX ending on 22 August 2022. ASX settlement will take place on Friday 26 August,
and NZX settlement and allotment of all new shares issued under the Placement will take place on Monday
29 August. A trading halt has been requested from NZX and ASX to facilitate the Placement.

Heartland also intends to undertake a non-underwritten SPP of $70 million to allow eligible shareholders
with an address recorded in Heartland’s share register that is in New Zealand or Australia at 7.00pm NZST
(5.00pm AEST) on the Record Date of Monday 22 August 2022, to apply for up to $50,000/A$45,000 of new
shares. Heartland has the ability to accept oversubscriptions at its discretion. Registered and beneficial
shareholders outside of New Zealand and Australia are not eligible to participate in the SPP. New shares will
be offered under the SPP at the lower of the price paid by investors in the Placement, and a 2.5% discount to
the 5-day volume weighted average price of Heartland shares traded on the NZX during the five NZX trading
days up to, and including, the closing date. The closing date for SPP applications by eligible shareholders is
Monday 5 September 2022.

If the SPP is oversubscribed, applications will be scaled having regard to shareholdings at the Record Date,
and otherwise at Heartland’s discretion.

The SPP Offer Document will be sent to eligible shareholders on Thursday 25 August 2022 and will be
available at www.heartlandshareoffer.co.nz on the same day. This document contains the final terms of the
SPP Offer. Applications can be made through this website or as otherwise directed by Heartland.

Harrogate Trustee Limited, Heartland’s largest shareholder, has committed to bid into the Placement with
the intention of maintaining a minimum shareholding of 9.8% post completion of the proposed equity raise.

New shares to be issued under both the Placement and the SPP will rank equally in all respects with
Heartland’s existing ordinary shares on issue, but will not be eligible for the FY2022 final dividend with a
record date of Friday 26 August 2022 (refer to page 15 for additional detail).

Heartland elected this offer structure due to the volatile market conditions to date in 2022, and its objective
to further diversify its share register to promote increased liquidity on both the NZX and ASX. This is
important in driving long-term value for all shareholders, by attracting depth of investment and widening
demand. Heartland will endeavour to treat existing shareholders in eligible jurisdictions fairly through the
Placement via an allocation policy that seeks, to the extent possible, to provide pro rata allocations to
existing shareholders that bid for at least such into the Placement. Heartland is also utilising its placement
capacity to increase the ability of shareholders to participate in the SPP the maximum amount possible

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
13
under the NZX Listing Rules for a SPP without utilising placement capacity, being 5% of shares on issue and
$15,000 per applicant. The SPP provides to participants the benefit of a downside pricing mechanism which
is not available in pro rata structures.

Equity raise key dates
24

SPP Offer Record Date Monday 22 August
Announcement of equity raise and Placement bookbuild while
Heartland is in trading halt
Tuesday 23 August
Announcement of results of Placement and trading halt lifted on
NZX and ASX
Wednesday 24 August
SPP Offer Opening Date Thursday 25 August
ASX Placement settlement Friday 26 August
NZX Placement settlement Monday 29 August
Allotment of new shares issued under the Placement Monday 29 August
SPP Offer Closing Date Monday 5 September
Announcement of results of SPP Offer Thursday 8 September
NZX and ASX settlement Friday 9 September
Allotment of new shares issued under the SPP Offer Friday 9 September
SPP Offer shares commence trading on NZX Friday 9 September
SPP Offer shares commence trading on ASX Monday 12 September

Regulatory update

Heartland continues to monitor the significant volume of regulatory change.

Initial changes to the CCCFA came into force on 1 December 2021. Heartland Bank implemented new
processes and technologies to enable it to comply with these changes, and continues to refine
them. Additional CCCFA changes were announced in June 2022 (effective 7 July 2022). Following the
completion of the New Zealand Government’s investigation into the impact of the December 2021 changes,
further amendments which seek to reduce the unintended impacts of the initial changes are expected to be
implemented in March 2023.

The Financial Markets (Conduct of Financial Institutions) Amendment Act 2022 (Conduct Act) was passed in
June 2022, and is planned to come into force in early 2025, following a transitional period. The Conduct Act
applies to registered banks, licensed insurers and licensed non-bank deposit takers, and is regulated by the
Financial Markets Authority (FMA). The Conduct Act introduces a new conduct licensing regime, the
requirement to establish, implement, maintain and comply with a fair conduct programme, and the
regulation of incentives (via new regulations which are yet to be consulted on). Incentives regulations will
apply both to Heartland Bank and its intermediaries involved in the distribution of its products.

New legislation (to be known as the Deposit Takers Bill) is being developed to:
1. strengthen the regulatory framework for all institutions that take deposits (including Heartland Bank)
through the strengthening of the RBNZ’s supervision and enforcement powers; and
2. introduce a new depositor compensation scheme, overseen by the RBNZ.

An exposure draft of the Deposit Takers Bill is expected to be introduced to Parliament in the latter half of
2022.

24
Dates are subject to change and are indicative only.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
14
In June 2022, the RBNZ announced the remaining dividend restrictions placed on banks, in response to the
impact of COVID-19, would be removed from 1 July 2022.

Continued preparation is underway to meet the Climate-Related Disclosures obligations introduced through
the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021, with Heartland’s
first climate statement required as part of reporting for the period ended 30 June 2024.

Sustainability update

Delivering sustainable profitability is a key tenet of Heartland’s overarching purpose and is supported by
Heartland’s three pillars of sustainability: environmental, social and economic. Key achievements for FY2022
in each area of sustainability are noted below.

Environmental conservation
‒ Continued work towards hitting Heartland’s ambitious emissions reduction targets, achieving a 31%
absolute reduction in Greenhouse Gas (GHG) emissions (estimated to be 21% when the short-term
impacts of COVID-19 are taken into account) in the two years to FY2021 (Heartland’s most recent GHG
emissions reporting period).
‒ Currently measuring Heartland’s FY2022 GHG emissions. This will be completed during FY2023 so that
Heartland will be in a position to report its FY2023 GHG emissions as part of its FY2023 financial
reporting. From FY2023, Heartland’s GHG emissions reporting will include emissions attributed to
customer activity enabled though lending.
‒ Heartland is financing an increasing number of “new generation” (electric and hybrid) vehicles. During
FY2022, 5% of vehicles financed in our Motor portfolio were new generation. However, that percentage
increased steadily over the year and continues to climb as Heartland’s key partners (including Kia,
Peugeot, Citroen, Jaguar and Land Rover) increase their production of new generation vehicles.
‒ Conducted analysis of the physical risks (including flood, drought or other natural hazard risk) and
transitional risks (including the potential for climate change related regulatory change, the ongoing
availability of insurance, and changes in borrower behaviour and preferences) of two climate change
scenarios over the medium- and long-term, to understand the potential impact of climate change on
Heartland’s portfolios, and support informed decision making going forward.
‒ Commenced the replacement of all fleet 4WD vehicles (23% of the fleet) with hybrid alternatives, with
the aim of converting the majority of the fleet to hybrid or electric by the end of 2023.
‒ Contributed to the consultation process for the mandatory reporting regime for climate-related
disclosures in New Zealand via memberships with the New Zealand Bankers Association (NZBA) and the
Climate Leaders Coalition.

Social equity
‒ Introduced pay gap reporting for gender and ethnicity. Heartland’s gender pay gap of 23% as at 31
January 2022 was 8% below the financial and insurance services industry average. Heartland’s Māori
and Pasifika pay gaps were 25% each. Pay gaps as at 30 June 2022 will be reported in the Annual Report
published on 28 September 2022.
‒ Heartland Bank achieved the Rainbow Tick in November 2021.
‒ Heartland Bank was a finalist in the 2022 HRNZ Awards in the Leader Māori HR award category for its
Manawa Ako internship programme.
‒ 93% of employees resonate with Heartland’s mātāpono (values) as being important values to them.
‒ Heartland Trust
25
grants totalled $501,933 to community groups and organisations.

25
The Heartland Trust is a registered charitable trust which is independent from, but closely supported by Heartland
and Heartland Bank.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
15
‒ Implemented processes and controls across Heartland to prevent any connection to modern day
slavery, whether through Heartland practices, customer practices, or supply chain connections.

Economic prosperity
‒ Enabled more than 40,000 New Zealanders and Australians to live a more comfortable retirement
through a reverse mortgage.
‒ Grew the Australian business through the acquisition of livestock financier StockCo Australia, which is
expected to contribute A$10-12 million to FY2023 NPAT.
‒ Continued to offer customers cost savings through some of New Zealand’s lowest mortgage rates with
Heartland’s self-serve online Home Loans application, despite a rapidly rising interest rate environment.
‒ Updated Heartland’s Procurement Policy to connect it more closely with Heartland’s sustainability
framework, with the aim of promoting Heartland’s values amongst new and existing supply-chain
partners, and supporting a more diverse and inclusive network.
‒ Delivered total shareholder return (TSR) of 66.9% over the last five years (19 August 2017 – 19 August
2022), compared with the NZX50 Index TSR of 56.7% in the same period.

More information and goals for the year ahead will be included in Heartland’s FY2022 Annual Report, to be
published on 28 September 2022 and available at shareholders.heartland.co.nz.

Final dividend

Heartland is pleased to declare a FY2022 final dividend of 5.5 cps, taking the total FY2022 dividend to 11.0
cps (flat on 2021). This represents a full year payout ratio of 68% which compares to the average over the
last three years of 69%. The dividend yield of 7.1%
26
is unchanged from FY2021
27
.

The final dividend will be paid on Wednesday 14 September 2022 (Payment Date) to shareholders on the
company’s register as at 5.00pm on Friday 26 August 2022
28
(Record Date) and will be fully imputed.

Heartland’s Dividend Reinvestment Plan (DRP), giving eligible shareholders the opportunity to reinvest some
or all of their dividend payments into new ordinary shares, is suspended for the final dividend due to the
proposed equity raise – see page 11.

Looking forward

The current economic environment presents the obvious challenges of rising inflation and rapidly rising
interest rates, tempered somewhat by low unemployment, flowing through into business and consumer
confidence.

To a meaningful extent, Heartland is insulated against these challenges due to expected levels of growth in
Reverse Mortgages (driven by demographics) and Livestock (driven by global demand for protein).

The large number of residential mortgages in New Zealand coming off fixed rates during the course of the
year should support ongoing growth of Home Loans. There is optimism that market share gains in Motor and
Asset Finance are available to underpin growth in markets that have seen some supply disruptions and a
decline in confidence. Similarly, Heartland’s focus on parts of the rural market that are underserviced by

26
FY2022 total fully imputed dividends divided by the closing share price as at 19 August 2022 of $2.16.
27
FY2021 total fully imputed dividends divided by the closing share price as at 20 August 2021 of $2.16.
28
NZ RegCo granted Heartland a waiver from the five Business Day notice requirement under NZX Listing Rule 3.14.1 in
relation to the final dividend.

Heartland Group Holdings Limited | 0800 85 20 20 | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz
16
larger banks, has the potential to offset the ongoing exit of larger rural relationship loans. However, this
must be weighed against decreasing confidence levels in some sections of the market.

With regard to risk in this environment, while Heartland has released its COVID-19 Overlay, it has adopted an
Economic Overlay of $8 million in order to provide coverage for a potential downside scenario. Alongside
this, the portfolio mix has shifted towards higher quality loans, with a strong increase in particular of Reverse
Mortgages, which are expected to continue to perform very well.

Efforts will continue to create efficiencies and frictionless service at the lowest cost. It will also be a very
important year for Heartland’s Australian strategy – the first full year with StockCo Australia as a member of
the Group, and in progressing Heartland’s pathway to becoming a bank through obtaining an ADI licence in
Australia.

Heartland expects NPAT for FY2023 to be within the guidance range of $109 million to $114 million,
excluding any impacts of fair value changes on equity investments held.

– ENDS –

For further information, please contact the person(s) who authorised this announcement:
Jeff Greenslade Andrew Dixson
Chief Executive Officer Chief Financial Officer
M 027 382 0023 M 021 263 2666

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

For media enquiries, please contact:
Nicola Foley
Group Head of Communications
M 027 345 6809
E nicola.foley@heartland.co.nz

Currency
Unless otherwise stated, all references to “$” are to the New Zealand dollar.

Not an offer of securities
This announcement has been prepared for publication in New Zealand and Australia and may not be
released to US wire services or distributed in the United States. This announcement does not constitute an
offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any
securities described in this announcement have not been, and will not be, registered under the US Securities
Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not
subject to, the registration requirements of the US Securities Act and applicable US state securities laws.

---

FY2022
AnnualResults
23 August 2022

Disclaimer and importantnotice
This presentation has been prepared by Heartland Group Holdings Limited (the Company or Heartland) in relation to its financial statements for the year
ended 30 June 2022 (FY2022) and an offer of new shares in the Company (New Shares) by way of:
•a placement to eligible institutional and other selected investors (Placement); and
•a share purchase plan offer to existing shareholders of the Company with an address recorded in Heartland’s share register whichis in New Zealand or
Australia (SPP),
in New Zealand under clause 19 of Schedule 1 to the Financial Markets Conduct Act 2013 (FMCA), and in Australia under part 6D.2 of the Corporations
Act 2001 (Cth), as notionally modified by Australian Securities and Investments Commission (ASIC) Corporations (Share and Interest Purchase Plans)
Instrument 2019/547 and ASIC Instrument 22-0735 (the Corporations Act) (the Placement and the SPP, together, are referred to as the Offer).
2
Information
This presentation contains summary information about the Company and its activities that is current as of the date of this
presentation. The information in this presentation is of a general nature and does not purport to be complete nor does it contain
all the information which a prospective investor may require in evaluating a possible investment in the Company or that wouldbe
required in a product disclosure statement for the purposes of the FMCA. The Company is subject to disclosure obligations that
require it to notify certain material information to NZX Limited (NZX) and ASX Limited (ASX). This presentation should be read in
conjunction with the Company's financial statements for the year ended 30 June 2022 and other periodic and continuous
disclosure announcements released to NZX and ASX (which are available at www.nzx.comand www.asx.com.auunder the
ticker code "HGH"). No information set out in this presentation will form the basis of any contract.
NZX and ASX
The New Shares will be quoted on the NZX Main Board following completion of each of the Placement and the SPP, and an
application will be made by Heartland for the New Shares to be quoted on the ASX. Neither NZX nor ASX accepts any
responsibility for any statement in this presentation. NZX is a licensed market operator, and the NZX Main Board is a licensed
market under the FMCA.
Not financial product advice
This presentation does not constitute legal, financial, tax, accounting, financial product or investment advice or a
recommendation to acquire the Company's securities (including the New Shares), and has been prepared without taking into
account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors
should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and
consult a financial adviser, solicitor, accountant or other professional adviser if necessary.
Investment risk
An investment in securities in the Company is subject to investment and other known and unknown risks, some of which are
beyond the control of the Company. Pages 41-43 (Key Risks) of this presentation includes a non-exhaustive summary of certain
key risks associated with the Company and the Offer. The Company does not guarantee the performance of the Company or any
return on any securities of the Company.
Not an offer
This presentation is not a prospectus or product disclosure statement or other offering document under New Zealand or
Australian law or any other law (and will not be filed with or approved by any regulatory authority in New Zealand, Australiaor
any other jurisdiction). This presentation is for information purposes only and is not an invitation or offer of securities for
subscription, purchase or sale in any jurisdiction. Any decision to purchase New Shares in the SPP must be made on the basis of
all information provided in relation to the Offer, including information to be contained or referred to in a separate offer document
which will be available following its release via NZX and ASX (Offer Document). Any eligible shareholder who wishes to
participate in the SPP should consider the Offer Document in deciding to apply under that offer. Anyone who wishes to apply for
New Shares under the SPP will need to apply in accordance with the instructions contained in the Offer Document. The
distribution of this presentation outside New Zealand or Australia may be restricted by law. Any recipient of this presentation
who is outside New Zealand or Australia must seek advice on and observe any such restrictions. Refer to Appendix 4 of this
presentation (International Offer Restrictions) for information on restrictions on eligibility criteria to participate in the Placement.
Restrictions on distribution
The information in this presentation has been prepared on the basis that all offers of New Shares under the Placement will be
made to Australian resident investors to whom an offer of shares for issue may lawfully be made without disclosure under Part
6D.2 of the Corporations Act 2001 (Cth) (Corporations Act) because of sections 708(8) to 708(11) of that act. This presentation
is not a prospectus, product disclosure statement or any other form of disclosure document regulated by the Corporations Act
and has not been and will not be lodged with ASIC. ASIC takes no responsibility for the contents of this presentation.
Accordingly, this presentation may not contain all information which a prospective investor may require to make a decision
whether to subscribe for New Shares and it does not contain all of the information which would otherwise be required by
Australian law to be disclosed in a prospectus, product disclosure statement or any other form of disclosure document regulated
by the Corporations Act.
This presentation is not for distribution or release to US wire services or in the United States. This presentation does not
constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. The New Shares havenot been,
and will not be, registered under the US Securities Act of 1933 (US Securities Act), or the securities laws of any state or other
jurisdiction of the United States. Accordingly the New Shares may not be offered or sold, directly or indirectly, in the United
States, except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable securities
laws of any state or other jurisdiction of the United States.

Financial data
All dollar values are in New Zealand dollars (NZ$ or NZD) unless otherwise stated.
This presentation includes certain financial measures that are "non-GAAP (generally accepted accounting practice) financial
information" under Guidance Note 2017: 'Disclosing non-GAAP financial information' published by the New Zealand Financial
Markets Authority, "non-IFRS financial information" under ASIC Regulatory Guide 230: 'Disclosing non-IFRS financial information'
and "non-GAAP financial measures" within the meaning of Regulation G under the U.S. Exchange Act of 1934. Disclosure of such
non-GAAP financial measures in the manner included in this presentation would not be permissible in a registration statement
under the U.S. Securities Exchange Act of 1934.Such financial information and financial measures (including underlying profit or
loss, underlying ROE, underlying CTI ratios and underlying EPS) do not have standardised meanings prescribed under New
Zealand equivalents to International Financial Reporting Standards (NZ IFRS), Australian Accounting Standards (AAS) or
International Financial Reporting Standards (IFRS) and therefore, may not be comparable to similarly titled measures presented
by other entities.
Because the Company complies with accounting standards, investors know that comparisons can be made with confidence
between reported profits and those of other companies, and there is integrity in the Company’s reporting approach. These non-
GAAP figures are provided as a supplementary measure for readers to assess the Company’s performance alongside NZ GAAP
reported measures, where one-offs, both positive and negative, can make it difficult to compare profits between years. However,
these do not have standardisedmeanings and should not be viewed in isolation nor considered a substitute for measures
reported in accordance with NZ GAAP. Non-GAAP financial information has been subject to review by KPMG.
Disclaimer
None of the Company, Jarden Securities Limited (Lead Manager), or Jarden Partners Limited (Underwriter), nor their respective
related companies and affiliates including, in each case, their respective shareholders, directors, officers, employees, agents and
advisers, as the case may be (Specified Persons), have independently verified or will verify any of the content of this presentation
and none of them are under any obligation to you if they become aware of any change to or inaccuracy in the information in this
presentation.
To the maximum extent permitted by law, each Specified Person disclaims and excludes all liability (whether in tort (including
negligence) or otherwise) for any direct or indirect loss, damage or other consequence (whether foreseeable or not) suffered by
any person: from the use of or reliance on the information contained in, or omitted from, this presentation; from refraining from
acting because of anything contained in or omitted from this presentation; or otherwise arising in connection therewith (including
for negligence, default, misrepresentation or by omission and whether arising under statute, in contract or equity or from any
other cause). To the maximum extent permitted by law, no Specified Person makes any representation or warranty, either
express or implied, as to the currency, fairness, accuracy, completeness or reliability of the information contained in this
presentation. You agree that you will not bring any proceedings against or hold or purport to hold any Specified Person liable in
any respect for this presentation or the information in this presentation and waive any rights you may otherwise have in this
respect.
None of the Lead Manager or the Underwriter or any of their respective affiliates, related bodies corporate, directors, officers,
partners, employees, agents or advisers have authorised, permitted or caused the issue, submission, dispatch or provision of this
presentation and none of them makes or purports to make any statement in this presentation and there is no statement in this
presentation which is based on any statement by any of them. None of the Lead Manager or the Underwriter or any of their
respective affiliates, related bodies corporate, directors, officers, partners, employees, agents or advisers take responsibility for
any part of this presentation, or the Offer, and make no recommendations as to whether you or your related parties should
participate in the Offer, nor do they make any representations or warranties to you concerning the Offer. You represent, warrant
and agree that you have not relied on any statements made by the Lead Manager, Underwriter, or their respective affiliates,
related bodies corporate, directors, officers, partners, employees, agents or advisers in relation to the Offer and you further
expressly disclaim that you are in a fiduciary relationship with any of them. No person named in this presentation or any oftheir
affiliates accept or shall have any liability to any person in relation to the distribution of this presentation from or in any
jurisdiction.
This presentation contains data sourced from and the views of independent third parties. In such data being replicated in this
presentation, no Specified Person makes any representation, whether express or implied, as to the accuracy of such data. The
replication of any views in this presentation should not be treated as an indication that the Company or any other Specified
Person agrees with or concurs with such views.
Forward-looking statements
This presentation may contain certain forward-looking statements with respect to the financial condition, results of operations
and business of the Company. Forward-looking statements can generally be identified by the use of words such as 'project',
'foresee', 'plan', 'expect', 'aim', 'intend', 'anticipate', 'believe', 'estimate', 'may', 'should', 'will' or similar expressions.
Forward-looking statements in this presentation include statements regarding the timetable, conduct and outcome of the Offer
and the use of proceeds thereof, Heartland’s strategies and future plans and Heartland’s future financial performance. Any
indications of, or guidance or outlook on, future earnings or financial position or performance and future distributions are also
forward-looking statements. All such forward-looking statements involve known and unknown risks, significant uncertainties,
assumptions, contingencies, and other factors, many of which are outside the control of the Company, which may cause the
actual results or performance of the Company to be materially different from any future results or performance expressed or
implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this presentation.
Except as required by law or regulation (including the NZX Listing Rules and the ASX Listing Rules), the Company undertakes no
obligation to update these forward-looking statements for events or circumstances that occur subsequent to the date of this
presentation or to update or keep current any of the information contained herein. Any estimates or projections as to events that
may occur in the future (including projections of revenue, expense, net income and performance) are based upon the best
judgement of the Company from the information available as of the date of this presentation. A number of factors could cause
actual results or performance to vary materially from the projections, including the risk factors set out in this presentation.
Investors should consider the forward-looking statements in this presentation in light of those risks and disclosures.
You are strongly cautioned not to place undue reliance on any forward-looking statements, particularly in light of the current
economic climate and the significant volatility, uncertainty and disruption caused in relation to the Company and otherwise by
the COVID-19 pandemic.
Past performance
Past performance information provided in this presentation is given for illustrative purposes only and should not be relied uponas
(and is not) a promise, representation, warranty or guarantee as to the past, present or future performance of the Company.
General
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materials distributed at, or in connection with, that presentation.
The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to
change without notice. Subject to the NZX and ASX Listing Rules, the Company reserves the right to withdraw, or vary the
timetable for, the Placement and/or the SPP, without notice.
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contents of this Disclaimer and Important Notice; (ii) you are permitted under applicable laws and regulations to receive the
information contained in this presentation; and (iii) you will base any investment decision solely on information released bythe
Company via NZX and ASX (including, in the case of the SPP, the Offer Document).
3
Disclaimer and importantnotice

Contents
4
01
Executive summaryPage 5
02
FY2022 highlightsPage 6 –9
03
Financial resultsPage 10 –14
04
Strategic updatePage 15 –19
05
Divisional summaryPage 20 –30
06
Funding, liquidity and capital updatePage 31 –34
07
Regulatory update and outlookPage 35 –37
08
Proposed equity raisePage 38 –43
09
AppendicesPage 44 –48

Executive summary
5
Financial results and trading update
•Achieved net profit after tax (NPAT) and earnings per share (EPS) growth of 9.3% and 8.1% respectively vs FY2021.
•Cost to income (CTI) ratio of 43.6%, down 3.2 percentage points (pps). Underlying CTI ratio of 42.5%, down 2.3 pps.
•Completed acquisition of StockCo Holdings 2 Pty Ltd and StockCo Australia Management Pty Limited (together, StockCo Australia).
•Increased AU Reverse Mortgage market share from 29.3% to 33.1%
1
, with origination share of 74%
2
.
Strategic vision
•A focused strategic vision to provide best or only products via scalable digital platforms, achieved through:
‒Business as Usual Growth
‒Frictionless Service at the Lowest Cost
‒Expansion in Australia
‒Acquisitions.
•Heartland continues to explore options to establish or acquire an authoriseddeposit-taking institution (ADI) licencein Australia.
Capital raising overview
3
•$200 million equity raising comprising:
‒$130 million fully underwritten placement (Placement)
‒$70 million non-underwritten share purchase plan (SPP), with the ability for Heartland to accept oversubscriptions at its
discretion.
•Proceeds will be used to repay the A$158 million acquisition finance facility outstanding in relation to the recent acquisition of StockCo
Australia, and to provide additional growth capital for Heartland’s existing businesses in Australia and New Zealand.
•The structure is designed to avoid volatility, but primarily to address Heartland’s share liquidity due to low levels of institutional
investment. This is important in driving long-term value for all shareholders, by attracting depth of investment and widening demand.
1
Based on APRA ADI Property Exposure and Heartland Finance data as at 31 March 2021 and 31 March 2022.
2
Based on APRA ADI Property Exposure and Heartland Finance data for the 12 months to 31 March 2022.
3
Heartland’s largest shareholder, Harrogate Trustee Limited, has pre-committed to participate in the Placement to maintain a minimum shareholding of 9.8% following completion of the Equity Raise. The Placement is fully underwritten by Jarden Partners Limited.

FY2022
highlights
6

Financial highlights
1
Reported FY2022 results include StockCo Australia earnings contribution since completion of the acquisition on 31 May 2022. Refer to Appendix 3 for reconciliation between reported and underlying NPAT result.
2
Other operating income (OOI) includes fair value gains/losses oninvestments.
3
Gross finance receivables (Receivables) also include ReverseMortgagesand StockCo Australia.
Underlyingother operating
income$13.7m(+1.2% vs
FY2021).
Underlying net interest
margin (NIM) 4.16%
(-19 basis points (bps)vs
FY2021).
Underlying average
interestearningassets
+$599.5m(+11.2% vs
FY2021).
Underlying operating
expenses(OPEX)$111.4m
(+0.6% vsFY2021).
Underlying CTI ratio 42.5%
(-2.3ppsvsFY2021).
$95.1m
$96.1m(+9.3%)
on an underlyingbasis
Net interest income
$250.1m
+7.1% vs FY2021
NPAT
1
+9.3% vs FY2021
4
Adjusted for the impact of StockCo Australia.
5
Impairment expense as a percentage of averagereceivables.
7
Financial
position
+23.5% vs June2021
$6,196m
GROSS FINANCERECEIVABLES
3
+26.9% vs June2021
$6,171m
B O R R O WIN G S
+6.2% vs June2021
$809m
EQUITY
-2.0 ppsvs June2021
11.4%
EQUITY/TOT A L ASSETS
Underlying impairment expense$15.7m
(+4.9% vs FY2021).
Underlying impairment expense ratio
0.29% (-2 bps vs FY2021).
Financial
performance
-19 bps vs FY2021
4.16%
NET INTEREST MARGIN
4
-3.2 ppsvs FY2021
43.6%
COST TO INCOME RATIO
-6 bps vs FY2021
0.25%
IMPAIRMENT EXPENSERATIO
5
Financial
return
+21 bps vs FY2021
12.1%
RETURN ON EQUITY
+1.2 cents per share (cps) vs FY2021
16.1cps
EARNINGS PER SHARE

Impairments, provisioning and
operating environment
•The current operating environment continues to present challenges, with heightened geopolitical tensions and rising inflation
contributing to increasing cost of living and rapidly rising interest rates.
•Heartland remains focused on ensuring support is provided to customers who may be struggling in the current environment.
Notwithstanding these pressures, Heartland’s loan portfolios have performed strongly. Underlying impairment expense ratio was
29 bps in FY2022, 2 bps lower than in FY2021.
•Impairment expense was $13.8 million, $1.2 million (7.7%) down on FY2021. This includes the net benefit of $1.6 million due to the
release of Heartland’s $9.6 million COVID-19 Overlay, partially offset by the newly created $8.0 million Economic Overlay.
•Excluding this and the impacts of the acquisition of StockCo Australia, underlying impairment expense was $15.7 million, $0.7
million (4.9%) higher than in FY2021.
•While the Receivables portfolio recorded strong growth during the year, impairment expense benefitted from an improved book
quality as a result of the continued tilt of the portfolio mix towards lower risk assets.
•Heartland’s COVID-19 Overlay of $9.6 million, taken in FY2020, has been released in full.
•The Overlay was taken to provide a buffer against any future losses that the uncertainty of COVID-19 may have given rise to.
Heartland now has more certainty around those impacts than in 2020, and its lending portfolios have benefited from improved
quality as the portfolio mix has moved towards higher quality and lower risk assets.
•The Overlay has not been utilisedby Heartland, and there is no longer any basis for retaining it.
•However, given the above-mentioned uncertainty and economic pressures facing businesses, it has been considered prudent to
create an Economic Overlay of $8.0 million. The Economic Overlay will provide more resilience in areas such as Business
Relationship lending and Asset Finance which have larger loan sizes.
8

Risk
•Heartland’s portfolio mix has continued to move towards higher quality and lower risk assets.
•For example, Heartland’s Reverse Mortgage portfolios in New Zealand and Australia have grown considerably and continue to
perform very strongly.
•Heartland’s Home Loans portfolio has grown significantly –conservative lending standards mean this book has performed very
strongly and is expected to be highly resilient to house price reductions and other potential economic shocks.
•Livestock, which has historically proven to be a resilient portfolio, has also grown significantly.
•Motor has not only grown, but has also benefited from improved quality as the volume of new car business in that book continues
to increase.
•At the same time, Heartland’s Personal Loans portfolio has reduced.
•Heartland’s total (collective and specific) provisions as at 30 June 2022 were $52.0 million, with a coverage ratio of 1.24%.This is a
reduction from the coverage ratio of 1.61% as at 30 June 2021, but is reflective of the improved quality and mix of Heartland’s
portfolios (including the growth of online Home Loans and Livestock Finance, and the reduction of the Harmoney Corp Limited
(Harmoney) personal loans channel). This improved quality is evidenced by the percentage of Heartland’s receivables that attracta
lifetime expected credit loss provision reducing from 6.32% as at 30 June 2021, to 3.92% as at 30 June 2022.
1
9
1
Heartland is not required to hold provisions in respect of its Reverse Mortgage portfolios, and so the coverage ratio does not include those portfolios. Heartland carries the Reverse Mortgage portfolios at fair value, which is currently determined to bethe face value of those loans. There is potential for loss from those loans,
however it is immaterial in the context of the face value of the loans, and does not impact Heartland’s determination that fair value of those loans is their face value.

10
Financial
results

Growth in profitability
Note:All figures inNZ$mand excluding StockCo Australia impacts. Refer to Appendix 3 for reconciliation between reported and underlying NPAT result. Chart is not to scale.
11
1FY2021 one-offs: $4.1 million net fair value gain on equity investments. FY2022 one-offs: (i) $16.7 million hedge accounting impacts, (ii) ($13.0 million) net fair value loss on equity investments.
2FY2021 one-offs: (i) $4.3 million voluntarily accelerated amortisation, (ii) $1.7 million aged items write-off and provision, (iii) $0.9 million other non-recurring items. FY2022 one-offs:
(i) $2.9 million voluntary amortisation of intangibles (ii) $1.0 million other non-recurring items (iii) ($0.5 million) aged items provision.
3FY2022 one-offs: (i) ($9.6) million COVID-19 Overlay release, (ii) $8.0 million newly created Economic Overlay.
4FY2021 one-offs: $1.9 million tax impact on one-offs. FY2022 one-offs: (i) ($1.4 million) non-recurring adjustments, (ii) $4.2 million tax impact on one-offs.
One-off impacts
↗8.1 (9.3%)
↗8.2 (9.3%)
4.7
0.4
(3.4)
(1.6)
0.9
(0.2)
2.8
FY2021 one-offs
$1.9m tax impact on one-offs
FY2022 one-offs
$1.4m non-recurring adjustments
($2.2m) tax impact on one-offs
0.8
0.9
Underlying: 87.9 →96.1
Reported: 87.0 →95.1
FY2022 one-offs
$9.6m COVID-19 overlay release
1
2
3
4

Note:
•NIM is calculated as net interest income/average gross interest
earning assets, adjusted for the impact of StockCoAustralia.
•Impairment expense ratio is calculated as impairment
expense/average gross finance receivables.
•Underlying CTI ratio and impairment expense ratio exclude
one-off impacts. Refer to Appendix 3 for reconciliation between
reported and underlying result.
Key
performance
measures
4.33%4.33%
4.35%
4.16%
4.46%
4.59%
4.69%
4.47%
FY19FY20FY21FY22
NIM
Total NIMNIM excl. Liquid Assets
41.6%
45.4%
46.8%
43.6%
39.9%
44.9%
44.8%
42.5%
FY19FY20FY21FY22
CTI
Reported CTIUnderlying CTI
0.65%
0.25%
0.49%
0.44%
0.31%
0.29%
FY19FY20FY21FY22
Impairment Expense Ratio
Reported Impairment Expense Ratio
Underlying Impairment Expense Ratio
75.6
87.0
79.4
112.0
1.72%
1.87%
1.58%
1.81%
Jun-19Jun-20Jun-21Jun-22
Non Performing Loans
Non Performing LoansNon Performing Loans Ratio
12
2
73.6
72.0
87.0
95.1
FY19FY20FY21FY22
NPAT ($ million)
-2%
+21%
+9%
↗8.9%
1
1
Compounded annual growth rate for the period FY2019-FY2022.
2
Increase in non performing loans (NPL) is primarily due to strong growth, with NPL ratio trending near historical averages.

1
Total fully imputed dividends divided by the closing share price as at 19 August 2022 of $2.16.
2
Total fully imputed dividends divided by the closing share price as at 20 August 2021 of $2.16.
3
Includes imputation credits.
•Return on equity (ROE) of 12.1%
(up21 bps vsFY2021). Underlying ROE of 12.6%
(up 59 vs FY2021).
•Earnings per share (EPS) of 16.1 cps,
up 1.2 cps compared with FY2021.
•Final dividend of 5.5 cps, taking FY2022 total dividend to
11.0 cps (flat on FY2021).
•Full year payout ratio of 68%, compared with the average
over the last three years of 69%.
•Dividend yield of7.1%
1
(FY2021: 7.1%
2
).
•Five year total shareholder return (TSR) of 66.9%,
(19 August 2017 –19 August 2022) compared with the
NZX50 Index TSR of 56.7% in the same period.
•Heartland’s Dividend Reinvestment Plan (DRP) is suspended
for this dividend due to the proposed equity raise.
Shareholderreturn
11.1%
10.5%
11.9%
12.1%
Jun 19Jun 20Jun 21Jun 22
ROE
13
13.0
12.5
14.9
16.1
FY19FY20FY21FY22
Earnings per share (cps)
66.9%
56.7%
(40%)
(15%)
10%
35%
60%
85%
110%
Aug-17Feb-18Aug-18Feb-19Aug-19Feb-20Aug-20Feb-21Aug-21Feb-22Aug-22
Heartland vs NZX50 TSR performance
(12 Aug 2017 –12 Aug 2022)
Heartland TSRNZX50 TSR
3

5,018
5,784
6,157
164
120
63
74
91
223
373
(3)
40
62
(67)
Jun 21
AU Reverse
Mortgages
NZ Reverse
Mortgages
Asset Finance
Open for
BusinessBusiness
Rural
Relationship
Livestock
Motor Finance
Personal
Lending
Home Loans
Jun 22
excl. StockCo
Australia
StockCo
Australia
Jun 22
Growth in receivables
Note: The graph shows FY2022growth in receivables by portfolio excluding the impact of changes in FX rates. All figures inNZ$m.
14
↗$1,139m (22.7%)
15.2%
19.9%
11.0%
(2.3%)
13.4%
8.4%
57.0%
7.0%
(50.9%)
376.6%
↗$766m (15.3%)

15
1
Strategic
update

Strategic progress
1
Based on APRA ADI Property Exposure and Heartland Finance data as at 31 March 2022.
16
Expansion in
Australia
AU Reverse Mortgages
received various
awards for excellence
in the sector.
Launched Express
Reverse Mortgage.
AU Reverse Mortgage
market share of 33.1%
at 31 March 2022.
1
Well-Life Loan and
Reverse Mortgage
product adjustments to
increase eligible market.
Frictionless service
at the lowest cost
120% increase in
Heartland Bank mobile
app users.
Core banking system
upgradeunderway.
Underlying CTI ratio
reducedfrom 44.8% in
FY2021 to 42.5% in
FY2022.
Ongoing development
of new functionality
and digital platforms
to enable increased
self-service.
Business as
usual growth
Heartland Bank
awarded Canstar’s
2022 Savings Bank of
the Year(fifth
consecutive year).
NZ Reverse Mortgages
remains Consumer
Trusted (fifth consecutive
year).
Reported on in
divisional summary
section, page 20.
Launched new
products: 90 Day Notice
Saverand Dairy Direct.
Heartland’s strategic vision is to provide best or only products via scalable digital platforms,
achieved through the four pillars below.
Acquisitions
Exploring options to
establish or acquire
an ADI in Australia.
Successfully completed
the acquisition of
StockCo Australia.
Exploring acquisitions
where there is a fit with
Heartland’s strategic
vision and the
opportunity to add value,
either as a means of
adding scale or
technology.

Sustainability
Delivered shareholder return
as described on page 13.
Enabled more than 40,000 New
Zealanders and Australians to
live a more comfortable
retirement through a reverse
mortgage.
Rainbow Tick achieved in
November 2021.
31% absolute reduction in Greenhouse
Gasemissions(21% adjusted for COVID-
19) from FY2019 baseline.
2022 HRNZ Awards finalist in the
Leader Māori HRaward category for
Manawa Akointernship programme.
Offeredcustomer cost savings
through some of New Zealand’s
lowest mortgage rates.
1
Pay gaps as at 31 January 2022. Pay gaps as at 30 June 2022 will be reported in the Annual Report published on 28 September 2022.
2
The Heartland Trust is a registered charitable trust which is independent from, but closely supported by Heartland and HeartlandBank.
17
Percentage of “new generation” (electric
and hybrid) vehicles financed increased
steadily over the year and continues to
climbas Heartland’s key partners increase
production of new generation vehicles.
23% of vehicle fleet replaced with hybrid
alternatives.
Preparation and contribution to new
climate-related disclosures in NZ (coming
into effect from FY2024).
93% of employees resonate with
Heartland’s mātāpono(values) as
important values to them.
Gender pay gap of 23% (8% below
Financial and Insurance Services
industry average), Māori and Pasifika
pay gaps each 25%.
1
Heartland Trust
2
grants totalled
$501,933 to community groups and
organisations.
Heartland’s sustainability framework is built on three key pillars:
environmental conservation, social equity and economic prosperity.
Environmental
Conservation
Social
equity
Economic
prosperity

StockCo Australia
•On 31 May 2022, Heartland completed the acquisition of StockCo
Australia.
•Total consideration was A$154.4 million
1
, funded through a A$158
million bridge facility provided by a major Australasian financial
institution.
•At the same time, a new long-term syndicated securitisation
warehouse was executed with A$300 million of senior funding
provided by two major Australasian financial institutions.
•StockCo Australia specialisesin livestock finance for cattle and sheep
farmers across Australia (74% cattle/26% sheep), with total assets of
A$358 million and a leading position in the market, estimated to be
A$7 billion
2
.
•Heartland’s focus is to build on StockCoAustralia’s position as a
market-leading provider of specialist livestock finance for cattle and
sheep farmers across Australia.
•Transaction costs of $1.2 million were expensed in FY2022 and
StockCo Australia contributed $1.4 million to FY2022 NPAT (excluding
bridge finance costs).
•StockCo Australia is projected to contribute A$10 million to A$12
million to FY2023 NPAT.
1
Including A$1.6 million of deferred consideration payable subject to performance hurdles.
2
Based on Australia Bureau of Statistics total rural debt and StockCo Australia data.
18
Number of customers1,579
Cumulative Loss Rate0.02%
FY22 Gross Yield11.4%
Weighted average tenor6.1 months
74%
26%
Livestock
Type
Cattle
Sheep
Cash and cash equivalentsA$8.7m
Livestock receivablesA$339.9m
Other assetsA$9.4m
Total assetsA$358.0m
BorrowingsA$325.9m
Other liabilitiesA$1.2m
Total liabilitiesA$327.1m
Net assets acquiredA$30.9m
Goodwill on acquisitionA$124.9m
52%
23%
13%
8%
4%
Geography
NSW
QLD
VIC
SA
WA
Key operating metrics
Acquisition metrics
Diversified loan portfolio

Further opportunities for growth in Australia
•Heartland has been exploring opportunities to establish or acquire an ADI in Australia. Becoming a bank through an ADI in Australia would make possible a number of benefits:
‒access to a deep and efficient pool of funding to support ongoing growth;
‒potential uplift in margin, to the extent that retail funding rates are less than wholesale rates; and
‒a platform to extend Heartland’s best or only strategy into Australia.
•The aim is to create the potential for a digital bank which, once Heartland assets are transferred into it, would be profitable.This, together with Heartland’s best or only strategy, provides the
opportunity for a differentiated proposition.
•To this end, Heartland has entered into a non-binding memorandum of understanding (MoU) with Avenue Hold Limited (Avenue Hold) in relation to the potential acquisition of Avenue Hold and its
subsidiary Avenue Bank Limited (Avenue Bank). Avenue Bank is a restricted ADI and is seeking to progress to becoming a full ADI.
•Any establishment or acquisition by Heartland of an ADI in Australia would be subject to regulatory approvals.
•Subject to regulatory approvals and transaction completion, Heartland’s existing businesses in Australia would be transferredtosit in or under Avenue Bank, and this would be the vehicle for growth
in Australia.
•In accordance with the MoU, Heartland has made an initial subscription for $5 million of capital in Avenue Hold. Heartland’s duediligence review is continuing, as is negotiation of binding transaction
documentation. Completion of any transaction is expected to be conditional upon a number of matters (which may include Heartlandsecuring acquisition funding, Heartland being satisfied as to the
likelihood of Avenue Bank progressing to being a full ADI, Avenue Hold shareholder support of the transaction, receipt of allnecessary regulatory approvals (including from APRA and the RBNZ), and
the absence of any material adverse change).
•Any requirements or conditions of regulatory approvals (including capital and liquidity requirements for the bank and relevant business of Heartland held below Heartland’s top-level holding company
in Australia, Heartland Australia Holdings Pty Limited (HAH)) will:
‒become known only as engagement with APRA and RBNZ progresses; and
‒be relevant to Heartland’s decision to proceed with the transaction.
•It is currently expected that completion of any acquisition would take place no earlier than the last quarter of FY2023, and possibly not until the first half of FY2024. The consideration payable by
Heartland on completion is expected to be A$49 million, subject to adjustments.
•For regulatory reasons, Heartland would be required to hold any ADI in Australia through an Australian incorporated non-operating holding company (NOHC) which is approved and regulated by
APRA. It is currently anticipated that HAH would be the appropriate vehicle to apply to APRA for authority to act as a NOHC. To pre-position HAH for this opportunity, Heartland is seeking the
consent of the RBNZ for HAH to also act as the NOHC of Heartland Bank in New Zealand. This would not result in any change to Heartland Bank’s beneficial ownership. This engagement with RBNZ
is at an early stage.
19

13
20
Divisional
summary

1
Compounded annual growth rate for the period 1 January 2017 –30 June 2022.
Reverse Mortgages portfolio analytics
NEW ZEALAND
AUSTRALIA
21
Average
loansize
$116,728
Weighted average
borrowers’ age
78
Average
originationLVR
10.0%
Weighted
averageLVR
18.3%
Proportion ofthe loan
book over75%LVR
0.0%
Number ofloans in the
book over75%LVR
1
FY2022
origination
$165m
(+$63m vs FY2021)
Total repayments
in FY2022
$85m
(-$8m vs FY2021)
FY2022 repayment
rate
14.0%
(vs 16.5% in FY2021)
Compounded annual
growth rate
1
12.1%
Repayments from
vintage loans (+11 years)
32.1%
(vs 37.0% in FY2021)
Average
loansize
A$148,405
Weighted average
borrowers’ age
77
Average
originationLVR
11.6%
Weighted
averageLVR
20.5%
Proportion ofthe loan
book over75%LVR
0.1%
Number ofloans in the
book over75%LVR
5
FY2022
origination
$254m
(+$64m vs FY2021)
Total repayments
in FY2022
A$157m
(+A$2m vs FY2021)
FY2022 repayment
rate
15.7%
(vs 16.9% in FY2021)
Compounded annual
growth rate
1
18.6%
Repayments from
vintage loans (+11 years)
19.0%
(vs 23.3% in FY2021)
$721m
NZ Reverse Mortgages
+$120m (19.9%)
vs June 2021
A$1,154m
AU Reverse Mortgages
+A$152m (15.2%)
vs June 2021

1
Excluding the impact of changes in FX rates.
2.
According to Deloitte at the 2021 Three Pillars Forum.
•Receivables increased by $163.8 million (15.2%)
1
to $1.24 billion.
•Growth was driven by the relaxation of COVID-19 lockdowns, growing
acceptance of reverse mortgages, promotion by the Australian Federal
Government of its Home Equity Access Scheme, and advertising
campaigns.
•Product specification adjustments made to Well-Life Loan and Reverse
Mortgage products to increase eligible market.
•Received four awards in FY2022, including Infochoice’sBest Reverse
Mortgage, and Australian Mortgage Awards’ ‘Most Effective Digital
Strategy –Lender’ Excellence Award for its digital focus.
•The potential addressable market for reverse mortgages is estimated to
be $10-15 billion.
2
AU ReverseMortgages
As at 30 June 2022
+8.2%
increase since June 2021
$39.2m
NET OPERATINGINCOME
As at 30 June 2022
+15.2%
1
growthsince June2021
$1.24b
RECEIVABLES
22

As at 30 June 2022
+33.4%
increase since June 2021
$32.5m
NET OPERATINGINCOME
$721.3m
+19.9%
As at 30 June 2022
growthsince June2021
RECEIVABLES
23
NZ ReverseMortgages
•New Zealand Reverse Mortgages net operating income (NOI)was up
33.4% from FY2021 due to record asset growth and improved margins.
•Receivables increased $119.8 million (19.9%) to $721.3 million.
•Increased awareness supported by advertising and a specialist team.
•New business in 2H2022 was 17.6% higher than 1H2022.
•Outlook positive as pipeline sits well above the previous corresponding
period.
•As cost of living pressures continue and indebtedness in retirement
increases, greater acceptance of reverse mortgages is expected to lead
to increased demand through FY2023.

1
Excludingthe impact of changes in FXrates.
Open forBusiness
As at 30 June 2022
-5.8%
decrease since June 2021
$13.7m
NET OPERATINGINCOME
-2.3%
1
As at 30 June 2022
decrease since June2021
$141.2m
RECEIVABLES
24
•Open for Business (O4B) is Heartland’s first digital platform that
provides unsecured loans to the small-to-medium enterprise (SME)
sector, with online approval possible within one minute.
•FY2022 saw a decrease of $0.8 million (5.8%) in O4B NOI.
•Receivables decreased $3.3 million (2.3%)
1
to $141.2 million.
•COVID-19 interrupted momentum in the O4B target market more
severely than in other Business segments.
•Although there were signs of recovery early in FY2022, the arrival of the
Omicron variant adversely impacted sector demand again.
•O4B growth in FY2023 will remain challenging as the SME sector
struggles to accommodate difficult macro-economic, logistical and
labourconditions.

Asset Finance
1
As at 30 June 2022
+7.5%
increasesinceJune 2021
$30.6m
NET OPERATINGINCOME
As at 30 June 2022
+11.0%
growth since June2021
$633.6m
RECEIVABLES
1
Previously referred to as Business Intermediated.
25
•Asset Finance NOI was up 7.5% from FY2021.
•Receivables increased $62.6 million (11.0%) to $633.6 million.
•New business growth exceeded expectations as Heartland continues to
build its intermediated partnership strategy and delivery processes.
•Demand from logistics and other productive sectors remained resilient
through variable conditions. Activity remains focused in these
segments.
•Significant market share opportunities exist and will be pursued in
FY2023.

Business
As at 30 June 2022
+18.6%
increasesinceJune 2021
$30.9m
NET OPERATINGINCOME
2
Excludingthe impact of changes in FXrates.
As at 30 June 2022
+13.4%
1
growth since June2021
$629.4m
RECEIVABLES
26
•Business includes floorplan lending to vehicle retailers and wholesale
facilities to other lenders. The portfolio includes what was previously
known as Business Relationship.
•Receivables increased $74.3 million (13.4%)
1
to $629.4 million.
•Growth in facility utilisationrates was driven by strong underlying
demand in motor vehicle sales combined with erratic shipping
schedules.
•Heartland has onboarded new customers in this segment and
supported the growth strategies of wholesale borrowers in other
sectors.

MotorFinance
As at 30 June 2022
+5.6%
increasesinceJune 2021
$73.1m
NET OPERATINGINCOME
$1.38b
+7.0%
As at 30 June 2022
growth since June2021
RECEIVABLES
27
•Motor Finance NOI was up 5.6% from FY2021.
•Receivables increased $90.8 million (7.0%) to $1.38 billion.
•Growth was mainly from the Motor dealer book via car dealerships,
brokers and partnerships such as Kia Finance, Jaguar/Land Rover
Financial Services, and Peugeot/Citroen (through Auto Distributors New
Zealand Limited (Auto Distributors) under the iOwnbrand). Auto
Distributors have also been appointed the distributors for Opel which
arrives in late September 2022.
•Growth in FY2022 was hindered by COVID-19 and the unintended
effects of changes to the CCCFA introduced on 1 December 2021,
which considerable reduced application automation rates and impacted
conversion rates.
•Since implementing a new process for premium customers, application
automation rates have started to increase.
•Portfolio performance returned to more normal levels in the last quarter
of FY2022, recording a 194% increase in growth on the previous
quarter and producing an annualisedgrowth rate of 7.4% for the
quarter.

As at 30 June 2022
-40.4%
decrease since June 2021
$10.3m
NET OPERATINGINCOME
As at 30 June 2022
-50.9%
1
decrease since June2021
$64.9m
RECEIVABLES
1
Excludingthe impact of changes in FXrates.
Personal Lending
28
•Personal Lending includes loans originated directly through Heartland
Bank, and those originated by Harmoney in New Zealand and
Australia.
•The New Zealand Harmoney channel decreased $58.3 million (76.0%) to
$18.4 million.
•The Australian Harmoney channel decreased by $36.6 million (74.9%)
1
to $12.2 million.
•Negotiations with Harmoney on proposed new wholesale facilities
ended in March 2022. Heartland’s Harmoney personal loans channel is
therefore running down.
•In the current risk environment, Heartland is comfortable with this book
running down.

HomeLoans¹
1
Excludes legacy Retail Mortgages.
1
As at 30 June 2022
450.8%
increase since June2021
$274.7m
RECEIVABLES
As at 30 June 2022
$0.1m
As at 30 June 2021
$2.1m
NET OPERATINGINCOME
29
•Home Loans
1
Receivables increased $224.8 million (450.8%) in FY2022
to $274.7 million.
•The rising interest rate environment drove a high volume of
applications, as customers locked in competitive rates.
•Heartland’s rates were frequently market-leading across standard
residential mortgage products throughout the year.
•Q2 growth was adversely impacted by the unintended effects of the
CCCFA changes introduced on 1 December 2021. Q3 advertising saw a
return to rapid growth, with book size increasing by $51.8 million.
•Strong customer retention in a competitive market. Retention rate for
customers whose fixed rates expired during 2H2022 was 91.1%.
•Heartland Home Loans remains in a phase of rapid growth, and a book
size of $495 million by the end of FY2023 is being targeted.

Rural
As at 30 June 2022
-6.1%
decrease since June 2021
$30.2m
NET OPERATINGINCOME
As at 30 June 2022
17.5%
increase since June2021
$689.1m
RECEIVABLES
30
•An increase in both LivestockReceivables of $62.3 million (57.0%) to
$171.7 million, and an increase in Rural Receivables of $40.2 million
(8.4%) to $517.4 million.
•Livestock enjoyed record growth in FY2022, resulting from an increase
in customers and facility utilisationrates reaching a historic high.
•New and expanded partnership opportunities that were developed in
FY2022 are expected to flow positively into FY2023.
•Sheep & Beef Direct was a success story throughout FY2022,
contributing 53% of total Rural new business. The product produced
consistent growth, which confirmed the market niche it was developed
for.
•A similar product for dairy farmers, Dairy Direct, was launched in
FY2022 and is expected to grow consistently with Sheep & Beef Direct.

13
31
Funding, liquidity
and capital update

2,273
2,456
2,245
2,189
881
813
968
895
513
66
108
268
283
293
285
273
60
110
209
3,497
3,628
3,723
4,347
Jun 19Jun 20Jun 21Jun 22
Heartland Bank
Funding Composition
1
$m
Term depositsCall deposits
Savings depositsSecuritised funding
Retail bondsOther wholesale funding
NZ fundingandliquidity
Heartland Group
Heartland Group increased borrowings by 26.9% to $6,170.7 million, contributed to by increases in New Zealand
and Australia.
Excluding StockCo Australia impacts, total borrowings increased by 16.5%to $5,669.0 million.
New Zealand
•Heartland Bank increased borrowings by 16.8% to $4,346.6 million.
‒Deposits grew 11.7% to $3,597.1 million, largely driven by strong growth in Notice Saver.
‒In FY2022, Heartland Bank launched a 90 Day Notice Saver product at a market-leading rate following
the successful launch of a 32 Day Notice Saver in late FY2021. Heartland Bank was announced
Canstar’sSavings Bank of the Year 2022 (fifth consecutive year), with awards for Direct Call and Notice
Saver accounts.
‒Other borrowings increased by 49.0% to $749.5 million, largely driven by increases in committed auto
warehouse facility and commercial paper.
•Increased committed auto warehouse facility from $300 million to $400 million in September 2021, with the
amount drawn down increasing by $159.6 million.
•Total liquidity remained strong, increasing by 1.0% to $627.9 million.
•Heartland Bank holds liquidity well in excess of regulatory minimums and maintains strong regulatory
liquidity ratios.
1
Includes intercompany deposits.
150
234
192
132
342
397
317
274
39
105
113
221
531
736
622
628
Jun 19Jun 20Jun 21Jun 22
Heartland Bank
Liquidity Composition $m
Undrawn limitInvestmentsCash
32
Core funding ratio
90.2%
as at Jun 22
vs 75% regulatory minimum
↓3.1 pps vs Jun 21
1-week mismatch
7.16%
as at Jun 22
vs 0% regulatory minimum
↑60 bps vs Jun 21
1-month mismatch
6.88%
as at Jun 22
vs 0% regulatory minimum
↓90 bps vs Jun 21

632
705
877
919
50
145
221
281
682
850
1,098
1,200
Jun 19Jun 20Jun 21Jun 22
Heartland Australia
Funding Composition A$m
Securitised fundingMTNs
AU fundingandliquidity
Australia
•Heartland Australia increased borrowings by 9.3% to A$1,200.2 million in FY2022, and has access to committed
Australian reverse mortgage loan funding of A$1.35 billion in aggregate.
•The Heartland Australia group continues to successfully progress expansion and extension of its funding facilities
to cater for strong growth in its portfolios.
•Reverse mortgage securitisationwarehouses maturity was extended by two and three years, and aggregate
senior limits were expanded by A$100 million, providing additional headroom to fund future growth in the
portfolio.
•An additional A$45 million Medium-Term Note (MTN) was issued in July 2021.
•An A$115 million MTN was issued in May 2022 to refinance an existing A$100 million MTN and provide
additional funding for future growth, taking the aggregate outstanding issuance under Heartland Australia’s
MTN programmeto A$280 million as at 30 June 2022.
•Additionally, a A$30 million tap into an existing A$45 million funding line, maturing in July 2024, was issued in
August 2022, adding further diversity to the funding base.
33
18
145
111
154
34
37
60
58
52
183
171
213
Jun 19Jun 20Jun 21Jun 22
Heartland Australia
Liquidity Composition A$m
Undrawn limitCash

•Partial restriction on bank dividends removed
effective 1 July 2022.
•Heartland Bank’s capital ratio as at 30 June
2022 is 13.49% (down from 13.88% as at 30
June 2021).
•As part of the RBNZ capital implementation
review requiring an increase in capital, increases
in capital will be phased in over a seven-year
period beginning from 1 July 2021, requiring the
minimum total capital ratio to gradually be
increased from the current 10.5% to 16.0%.
•On current footings, Heartland Bank would
require $24 million additional capital to meet the
14% Tier 1 ratio requirement, and a further $93
million to meet the 16% total capital
requirement. Heartland Bank currently has no
hybrid capital (additional tier 1 or tier 2) on
issue.
•Heartland Bank’s current capital position and
organic growth in capital is expected to be
sufficient to meet future minimum requirements.
Capital
7085843
Heartland Capital Allocation $m
Heartland BankHeartland AustraliaHeartland Group Holdings
$808.7 million (11.4% of total assets)
as at 30 June 2022
34

13
35
Regulatory update
and outlook

Regulatory update
Heartland continues to monitor the significant volume of regulatory change.
Changes to the CCCFA
•Initial changes came into force on 1 December 2021.
•Heartland Bank implemented new processes and technologies to enable it to comply with these changes and continues to refine them.
•Additional CCCFA changes were announced in June 2022 (effective 7 July 2022).
•Following completion of the Government’s investigation into the impact of the December 2021 changes, further changes which seek to reduce the unintended
impacts of these changes are expected to be implemented in March 2023.
Financial Markets (Conduct of Financial Institutions) Amendment Act 2022
•Passed in June 2022, the Act is planned to come into force in early 2025 following a transitional period.
•Applies to registered banks, licensed insurers and licensed non-bank deposit takers and is regulated by the Financial Markets Authority (FMA).
•The Act introduces a new conduct licensing regime, the requirement to establish, implement, maintain and comply with a fair conduct programmeand the
regulation of incentives (via new regulations which are yet to be consulted on).
•Incentives regulations will apply both to Heartland Bank and its intermediaries involved in the distribution of its products.
Proposed Deposit Takers Act
•New legislation is being developed to:
‒strengthen the regulatory framework for all institutions that take deposits (including Heartland Bank) through the strengtheningof RBNZ’s supervision
and enforcement powers; and
‒introduce a new depositor compensation scheme, overseen by RBNZ.
•An exposure draft of the Deposit Takers Bill is expected to be introduced to Parliament in the latter half of 2022.
Removal of RBNZ dividend restrictions placed on banks
•In June 2022, the RBNZ announced the remaining dividend restrictions placed on banks would be removed from 1 July 2022.
Climate-Related Disclosures
•Continued preparation is underway to meet the Climate-Related Disclosures obligations introduced through the Financial Sector (Climate-related Disclosures
and Other Matters) Amendment Act 2021, with Heartland’s first climate statement required as part of reporting for the period ended 30 June 2024.
36

Lookingforward
•The current economic environment presents the obvious challenges of rising inflation and rapidly rising interest rates, temperedsomewhat by low
unemployment, flowing through into business and consumer confidence.
•To a meaningful extent, Heartland is insulated against these challenges due to expected levels of growth in Reverse Mortgages(driven by demographics)
and Livestock (driven by global demand for protein).
•The large number of residential mortgages in New Zealand coming off fixed rates during the course of the year should support ongoing growth of Home
Loans. Continued market share gains in Motor and Asset Finance is expected to underpin growth in markets that have seen supply disruptions and a
decline in confidence. Similarly, Heartland’s focus on parts of the rural market that are underserviced by larger banks, has thepotential to offset the
ongoing exit of larger rural relationship loans. However, this must be weighed against decreasing confidence levels in some sections of the market.
•With regard to risk in this environment, while Heartland has released its COVID-19 Overlay, it has adopted an Economic Overlay of $8 million in order to
provide coverage for a potential downside scenario. Alongside this, the portfolio mix has shifted towards higher quality loans, with a strong increase in
particular of Reverse Mortgages, which are expected to continue to perform very well.
•Efforts will continue to create efficiencies and frictionless service at the lowest cost. It will also be a very important year for Heartland’s Australian
strategy –the first full year with StockCo Australia as a member of the Group, and in progressing Heartland’s pathway to becoming a bank through
obtaining an ADI licencein Australia.
Heartland expects NPAT for FY2023 to be in the range of $109 million to $114 million, excluding any impacts of fair value changes on equity investments held.
37
NPAT for FY2023

38
1
Proposed
equity raise

Equity raise offer summary
39
Offer size and structureHeartland is seeking to raise NZ$200 million (Equity Raise) in new equity via a:
‒NZ$130 million fully underwritten placement to eligible investors; and
‒NZ$70 million share purchase plan, with the ability for Heartland to accept oversubscriptions at its discretion.
•The SPP is open to all eligible shareholders with an address recorded in Heartland’s share register that is in New Zealand orAustralia on the Record Date.
Each eligible shareholder can apply for up to NZ$50,000/A$45,000 shares.
•Heartland elected this offer structure due to the volatile market conditions to date in 2022, and its objective to further diversify its share register to promote
increased liquidity on both the NZX and ASX. This is important in driving long-term value for all shareholders, by attracting depth of investment and
widening demand.
Use of proceeds•Proceeds will be used to repay the A$158 million acquisition finance facility outstanding in relation to the recent acquisition of StockCo Australia, and to
provide additional growth capital for Heartland’s existing businesses both in Australia and New Zealand.
Offer price•New Shares under the Placement will be issued at a fixed price of NZ$1.80 per share (Placement Price).
•The underwritten fixed price represents a discount of:
‒12.8% to the ex-dividend adjusted last close of NZ$2.065 per share on 22 August 2022; and
‒13.7% to the ex-dividend adjusted 5-day volume weighted average price (VWAP) of NZ$2.0851 per share.
•New Shares will be offered under the SPP at the lower of the Placement Price or a 2.5% discount to the 5-day VWAP of Heartland shares traded on the
NZX up to and including the closing date of the SPP.
Ranking and quotation•New Shares issued under the Placement and the SPP will rank equally with existing Heartland shares on issue and will be quoted on NZX Main Board and
ASX from the date of allotment.
•The New Shares issued under the Placement and SPP will not be entitled to the FY2022 final dividend payable on 14 September 2022, with a Record Date
of 26 August 2022.
Underwriting•Heartland’s largest shareholder, Harrogate Trustee Limited, has pre-committed to participate in the placement to maintain a minimum shareholding of
9.8% following completion of the Equity Raise.
•The Placement is fully underwritten by Jarden Partners Limited.

Equity raise
timetable
40
PlacementDate
1
Trading halt commences and Placement bookbuild opensTuesday 23 August 2022
Announcement of results of Placement and trading halt liftedWednesday 24 August 2022
ASX settlementFriday 26 August 2022
NZX settlementMonday 29 August 2022
Placement shares allotted and commence trading on NZX Main Board and ASXMonday 29 August 2022
SPP
2
Date
1
Record date (7.00pm NZST)Monday 22 August 2022
Expected dispatch of Offer DocumentThursday 25 August 2022
SPP opensThursday 25 August 2022
SPP closes
7.00pm NZST (5.00pm AEST)
Monday 5 September 2022
Announcement of results of SPP, including issue price in NZ$ and A$Thursday 8 September 2022
NZX and ASX settlementFriday 9 September 2022
SPP shares allotted and commence trading on NZXFriday 9 September 2022
Expected mailing of holding statementsFriday 9 September 2022
SPP shares commence trading on ASXMonday 12 September 2022
•Eligible investors interested in participating in the Placement
should contact their broker on Tuesday 23 August 2022.
•Shareholders entitled to participate in the SPP should visit
www.heartlandshareoffer.co.nzand apply online by 7.00pm
(NZST) on Monday, 5 September 2022.
•Heartland trades ex-dividend on Thursday 25 August 2022. New
Shares issued under the Placement and SPP will not be entitled
to the FY2022 final dividend.
1
Dates above are subject to change and are indicative only
2
Eligible shareholders with an address recorded in Heartland’s share register that is in New Zealand or Australia on the Record Date can find out more about the SPP at www.heartlandshareoffer.co.nz and can apply online during the SPP period.

This section does not (and does not purport to) set out all of the risks related to an investment in Heartland shares, the future
operating or financial performance of Heartland, the proposed equity raise or general market or industry risks. Some risks may
be unknown and other risks, currently believed to be immaterial, could turn out to be material.
In light of heightened geopolitical tensions, rising inflation contributing to an increasing cost of living and rapidly rising interest
rates, extra caution should also be taken when assessing the risks associated with the investment. These ever-evolving
situations continue to pose challenges for global financial markets and the economy as a whole. Capital markets continue to
see equity securities suffer from spikes in volatility and significant price declines.
As a financial institution, Heartland is exposed to credit, capital, liquidity, market (including interest rate), operational,
compliance and general business risk. Heartland has implemented structures, policies, procedures, controls and information
systems that it considers appropriate to manage these risks, but there are inherent limitations to any risk management
framework –Heartland is exposed to risks that may not be anticipated or are outside its control, or its risk management
framework may not operate effectively. If any of Heartland’s risk management processes and procedures prove ineffective or
inadequate or are otherwise not appropriately implemented, Heartland could suffer unexpected losses and reputational
damage which could adversely affect Heartland’s business and financial performance.
Before deciding whether to invest in Heartland shares, you must make your own assessment of the risks associated with such
an investment and consider whether it is suitable for you, having regard to publicly available information (including this
presentation), your personal circumstances and following consultation with a financial adviser or other professional adviser.
Key risks
This section outlines the key risks that Heartland has identified as relevant to investors in the
proposed equity raise. These risks may affect the future operating and financial performance of
Heartland and the Heartland share price. Like any investment, there are risks associated with an
investment in Heartland’s shares.
41

Risks
42
Macro-economic conditions•Increased volatility in macro-economic conditions (rising inflation, increasing costs of living and rapidly rising interest rates) is being experienced as a
result of geopolitical tensions and other factors.
•Severe deterioration in macro-economic conditions could impact on the availability and/or utility of Heartland’s funding arrangements or otherwise
impact upon Heartland’s liquidity.
•It could also result in increased credit risk through higher unemployment for consumers and adverse financial conditions for businesses.
As a financial services group, either of those outcomes could have a material adverse impact on Heartland.
Successful execution of
strategic objectives
•Heartland’s strategy involves continuing to seek and execute on growth opportunities, either through business as usual growthoracquisitions.
•The proposed equity raise will provide Heartland with capital to continue to grow. There is a risk that Heartland may not be successful in executing its
growth strategies, resulting in costs being incurred without commensurate benefits being enjoyed. In addition, there are other risks associated with this
strategy. Those risks include Heartland’s ability to successfully compete in the increasingly competitive landscape in which Heartland operates; the fact
that Heartland’s growth ambitions are, in some cases, reliant on the receipt of regulatory approvals which are beyond Heartland’s control; and that
overall market conditions mean that it is more challenging to execute Heartland’s strategy within normal timeframes and budgets in the current
environment.
People and projects•The tight labourmarket and health impacts on the workforce from the ongoing prevalence of COVID-19 strains and other illnesses affects the
continuity and availability of people and make recruiting of appropriately qualified employees challenging. This is particularlyin areas where key skills
are in high demand. Resource challenges could affect the delivery of major projects at Heartland, achievement of strategic priorities, and the smooth
functioning of business operations.
Information technology and
cybersecurity
•Heartland relies on the performance, reliability and availability of its information technology, communication and other business systems. Malicious or
operational causes, damage, interruption or failure of Heartland’s key systems and cybersecurity measures, or compromise of data, could result in
significant disruptions to Heartland’s business, reputational damage, and heightened regulatory scrutiny.
•Heartland is currently undertaking a program of investment in its information technology systems. Heartland is upgrading its core banking system,
Flexcube, provided by Oracle, which is expected to be completed by November. Associated projects are also occurring, which are contingent on
completion of the Flexcubeupgrade. The program is currently operating on schedule, however, experience suggests that issues may arise which cause
delays and/or cost overruns, and could possibly impact upon FY2023 NPAT.

Risks cont.
43
Biosecurity•Heartland Bank has a livestock and rural funding business in New Zealand. Heartland Group recently acquired StockCo Australia, amarket-leading
provider of specialist livestock finance for cattle and sheep farmers across Australia. Through these businesses, Heartland either finances, or takes
security, over livestock, which exposes Heartland to disease and mortality risk.
•There is presently a Foot and Mouth outbreak in Bali. Should Foot and Mouth disease reach Australia or New Zealand, there areGovernmental response
plans to stamp it out by immediately controlling movement of livestock, isolating, tracing and culling livestock. There are alsocompensation schemes
available for farmers of culled livestock. Those measures, in addition to Heartland’s origination procedures and lending standards, are expected to limit
Heartland’s longer term risk, however there could be a material adverse effect on Heartland’s financial performance in the shortterm due to a national
market price reduction in the early stages of an incursion, potential delays in receiving compensation payments and/or lengthened trades due to
processing challenges.
Regulatory impact•The financial services sector continues to face significant regulatory scrutiny and change. Any failures by Heartland to comply with existing regulatory
requirements may impact both Heartland’s business and its reputation. Future changes in laws and regulations in New Zealand and Australia may
require changes to Heartland’s business plan and model and may affect Heartland’s financial performance.
Reverse Mortgage portfolio
risk
•Heartland has portfolios of reverse mortgage loans in both New Zealand and Australia.
•The terms of Heartland’s reverse mortgage loans mean that a borrower can choose to live in their home for as long as they wish, and the amount
required to repay their loan will never exceed the sale proceeds of their property. This exposes Heartland to some risk (namely that the loan balance
exceeds the value of the property). Heartland monitors and is comfortable with this risk, but significant movements in borrower mortality trends, trends
in borrower movement to retirement care facilities, interest rates and house price inflation could increase that risk and have amaterial adverse impact
on Heartland.
•Reverse mortgage loans are also an area of heightened potential reputational risk. Heartland has comprehensive origination procedures and lending
standards which aim to eliminate any source of potential reputational risk, but there is a chance that those lending standards may not operate
effectively on occasion and that Heartland could be exposed to reputational risk.
Hedge accounting•Heartland endeavoursto fully hedge the economics of its interest rate risks. The derivatives used to create these hedges are subject to different
accounting treatment than the loan and deposit books. Hedge accounting for derivatives is complex, and in some market environments where ordinary
correlations dislocate, it is difficult to achieve. This may cause accounting hedge ineffectiveness, or for hedge accounting relationships to fail, resulting in
some gain or loss through profit or loss. Should this occur, it could possibly impact upon FY2023 NPAT, however it would be non-cash and not reflective
of underlying performance.

44
Appendices

Net Interest Margin
2
4.16%4.35%(19 bps)
Cost to Income ratio
43.6%46.8%(3.2 pps)
Impairment Expense Ratio
0.25%0.31%(6 bps)
Return on Equity
12.1%11.9%21 bps
Earnings per Share
16.1 cps14.9 cps
1.2cps
Financialperformance
$m FY2022FY2021Change ($)Change (%)
Net Operating Income
1
267.6251.216.46.5%
Operating Expenses116.8117.7(0.9)(0.8%)
Impairment Expense13.815.0(1.2)(7.7%)
Profit Before Tax137.0118.618.515.6%
Tax Expense41.931.510.432.9%
Net Profit After Tax95.187.08.19.3%
1
Includes fair value movements.
2
Adjusted for the impact of StockCoAustralia.
45

Financialposition
$m
30 June
2022
30 June
2021
Movement
($m)
Movement
(%)
Liquid Assets585539458.4%
Gross Finance Receivables6,1965,0181,17723.5%
Provisions(52)(54)2(3.1%)
Other Assets362179183101.9%
Total Assets7,0905,6831,40724.8%
Retail Deposits3,5933,18340912.8%
Other Borrowings2,5781,68189853.4%
Total Funding6,1714,8641,30726.9%
Other Liabilities111575493.3%
Equity809762476.2%
Total Equity & Liabilities7,0905,6831,40724.8%
46

Reconciliation
of reported with
underlying results
FY2022 one-offs included in the reported result:
•Hedging: A $16.7 million gain was recognisedin relation to derivatives that were de-
designated from hedge accounting relationships.
•Impairment provisions: $9.6 million COVID-19 Overlay, originally raised in FY2020, remained
entirely unutilisedand was released in full. A new $8.0 million Economic Overlay was created.
•Valuation of investments: a $12.7 million fair value loss was recognisedon investment in
Harmoney shares, and a further $0.3 million fair value loss was recognisedon Heartland
Bank’s rights over a profit-sharing arrangement with a customer.
•Voluntary amortisationof intangibles: $2.9 million expense was recognisedfor intangibles that
are no longer expected to derive future economic benefits.
•Other non-recurring expenses: $1.0 million.
•Aged items provisions and legacy accruals: a combined $0.5 million of unwarranted accruals
and provisions for aged legacy suspense account transactions were released.
•Tax adjustments: a $1.2 million release of tax provisions relating to prior periods and $0.2
million of other non-recurring tax benefits were recognisedduring the year.
FY2021one-offs included in the reported result:
•Valuation of investments: a $3.9 million fair value gain was recognisedon Harmoney shares,
and a further $0.2 million net fair value gain on other equity investments.
•Voluntarily accelerated amortisationof intangible assets: $4.3 million expense was recognised,
reflecting an acceleration of amortisationof software assets held on the balance sheet.
•Aged items provision and write-off: $1.7 million of aged legacy suspense account transactions
were written off or provisioned where collectability is uncertain.
•Other non-recurring expenses: $0.9 million.
$mFY2022FY2021Movement ($m)Movement (%)
Reported NOI267.6251.216.46.5%
Less:
StockCo Australia impacts
1
1.9-1.9
Hedge accounting impacts16.7-16.7
Net fair value gain/(loss) on investments(13.0)4.1(17.1)
Underlying NOI262.0247.114.96.0%
Reported OPEX116.8117.7(0.9)(0.8%)
Less:
StockCo Australia impacts
1
1.9-1.9
Voluntary (accelerated) amortisation2.94.3(1.4)
Aged items provisions and legacy accruals(0.5)1.7(2.2)
Other non-recurring items1.00.90.1
Underlying OPEX111.4110.80.60.6%
Reported impairment expense13.815.0(1.2)(7.7%)
Less:
StockCo Australia impacts
1
(0.3)-(0.3)
COVID-19 Overlay release(9.6)-(9.6)
Economic Overlay created8.0-8.0
Underlying impairment expense15.715.00.74.9%
Reported NPAT95.187.08.19.3%
Less:
Post-tax StockCo Australia impacts
1
---
Post-tax impact of one-offs(2.3)(0.8)(1.5)
Tax adjustments relating to prior periods1.4-1.4
Underlying NPAT96.187.98.29.3%
Reported NIM4.05%4.35%(29 bps)
Underlying NIM4.16%4.35%(19 bps)
Reported CTI43.6%46.8%(3.2 pps)
Underlying CTI42.5%44.8%(2.3 pps)
Reported ROE12.1%11.9%21 bps
Underlying ROE12.6%12.0%59 bps
1
Includes StockCo Australia’s results and transaction costs related to the acquisition of StockCo Australia (where applicable).
47

Australia
The information in this presentation has been prepared on the basis that all offers of New Shares under the Placement will be
made to Australian resident investors to whom an offer of shares for issue may lawfully be made without disclosure under Part
6D.2 of the Corporations Act 2001 (Cth) (Corporations Act) because of sections 708(8) to 708(11) of that act. Accordingly, if you
are in Australia or a person for whom you are acquiring the New Shares under the Placement is in Australia, the offer is madeto
you on the basis that:
•you are a “wholesale investor”; and
•any person for whom you are acquiring the New Shares under the Placement is in compliance with any applicable legal offer
restrictions and any applicable selling restrictions set out in the Information Materials and, subject to those selling restrictions,
may not need to be a “wholesale investor”.
“wholesale investor” means a sophisticated investor within the meaning of section 708(8) of the Corporations Act or an
experienced investor meeting the criteria in section 708(10) of the Corporations Act or a “professional investor” within the
meaning of section 708(11) of the Corporations Act.
Hong Kong
WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and
Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorisedby the Securities and Futures
Commission in Hong Kong pursuant to the Securities and Futures Ordinance (Cap. 571) of the Laws of Hong Kong (the SFO).
Accordingly, this document may not be distributed, and the New Shares may not be offered or sold, in Hong Kong other than to
"professional investors" (as defined in the SFO and any rules made under that ordinance).
No advertisement, invitation or document relating to the New Shares has been or will be issued, or has been or will be in the
possession of any person for the purpose of issue, in Hong Kong or elsewhere that is directed at, or the contents of which are
likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong)
other than with respect to New Shares that are or are intended to be disposed of only to persons outside Hong Kong or only to
professional investors. No person allotted New Shares may sell, or offer to sell, such securities in circumstances that amount to an
offer to the public in Hong Kong within six months following the date of issue of such securities.
The contents of this document have not been reviewed by any Hong Kong regulatory authority. You are advised to exercise
caution in relation to the offer. If you are in doubt about any contents of this document, you should obtain independent
professional advice.
Singapore
This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a
prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or
materials in connection with the offer or sale, or invitation for subscription or purchase, of New Shares, may not be issued,
circulated or distributed, nor may the New Shares be offered or sold, or be made the subject of an invitation for subscription or
purchase, whether directly or indirectly, to persons in Singapore except pursuant to and in accordance with exemptions in
Subdivision (4) Division 1, Part 13 of the Securities and Futures Act 2001 of Singapore (the SFA) or another exemption under the
SFA.
This document has been given to you on the basis that you are an "institutional investor" or an "accredited investor" (as such
terms are defined in the SFA). If you are not such an investor, please return this document immediately. You may not forward or
circulate this document to any other person in Singapore.
Any offer is not made to you with a view to the New Shares being subsequently offered for sale to any other party in Singapore.
On-sale restrictions in Singapore may be applicable to investors who acquire New Shares. As such, investors are advised to
acquaint themselves with the SFA provisions relating to resale restrictions in Singapore and comply accordingly.
United Kingdom
Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct
Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act
2000, as amended ("FSMA")) has been published or is intended to be published in respect of the New Shares.
The New Shares may not be offered or sold in the United Kingdom by means of this document or any other document, except in
circumstances that do not require the publication of a prospectus under section 86(1) of the FSMA. This document is issued ona
confidential basis in the United Kingdom to "qualified investors" within the meaning of Article 2(e) of the UK Prospectus Regulation.
This document may not be distributed or reproduced, in whole or in part, nor may its contents be disclosed by recipients, to any
other person in the United Kingdom.
Any invitation or inducement to engage in investment activity (within the meaning of section 21 of the FSMA) received in
connection with the issue or sale of the New Shares has only been communicated or caused to be communicated and will only be
communicated or caused to be communicated in the United Kingdom in circumstances in which section 21(1) of the FSMA does not
apply to the Company.
In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in
matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and MarketsAct
2000 (Financial Promotions) Order 2005 ("FPO"), (ii) who fall within the categories of persons referred to in Article 49(2)(a) to (d)
(high net worth companies, unincorporated associations, etc.) of the FPO or (iii) to whom it may otherwise be lawfully
communicated (together "relevant persons"). The investment to which this document relates is available only to relevant persons.
Any person who is not a relevant person should not act or rely on this document.
United States
This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The New
Shares have not been, and will not be, registered under the US Securities Act of 1933 or the securities laws of any state or other
jurisdiction of the United States. Accordingly, the New Shares may not be offered or sold in the United States except in
transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state
securities laws.
The New Shares will only be offered and sold in the United States to:
•“qualified institutional buyers” (as defined in Rule 144A under the US Securities Act); and
•dealers or other professional fiduciaries organized or incorporated in the United States that are acting for a discretionary or
similar account (other than an estate or trust) held for the benefit or account of persons that are not US persons and for
which they exercise investment discretion, within the meaning of Rule 902(k)(2)(i) of Regulation S under the US Securities Act.
International offer restrictions
48
This document does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this document may not be
distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia and New Zealand except in the Placement to
the extent permitted below.

Thank you
For Heartland’s FY2022 full year results
announcement, please see
shareholders.heartland.co.nz

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)

Results for announcement to the market
Name of issuer Heartland Group Holdings Limited
Reporting Period 12 months to 30 June 2022
Previous Reporting Period 12 months to 30 June 2021
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$267,617 6.5%
Total Revenue $267,617 6.5%
Net profit/(loss) from
continuing operations
$95,125 9.3%
Total net profit/(loss) $95,125 9.3%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.05500000
Imputed amount per Quoted
Equity Security
$0.02138889
Record Date 26/08/2022
Dividend Payment Date 14/09/2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.96 $1.16
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the audited financial statements that accompany
this announcement for a further explanation of these figures.
Authority for this announcement
Name of person authorised
to make this announcement
Andrew Dixson, Chief Financial Officer
Contact person for this
announcement
Andrew Dixson, Chief Financial Officer
Contact phone number 09 927 9274
Contact email address Andrew.Dixson@heartland.co.nz
Date of release through MAP 23/08/2022

Audited financial statements accompany this announcement.

---

Distribution Notice

Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)

Section 1: Issuer information
Name of issuer Heartland Group Holdings Limited
Financial product name/description Ordinary shares
NZX ticker code HGH
ISIN (If unknown, check on NZX
website)
NZHGHE0007S9
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year x Quarterly
Half Year Special
DRP applies
Record date 26/08/2022
Ex-Date (one business day before the
Record Date)
25/08/2022
Payment date (and allotment date for
DRP)
14/09/2022
Total monies associated with the
distribution
1

$32,609,710.10
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.07638889
Gross taxable amount
3
$0.07638889
Total cash distribution
4
$0.05500000
Excluded amount (applicable to listed
PIEs)
NIL
Supplementary distribution amount $0.00970588
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed

Fully imputed - YES
Partial imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident W ithholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RW T.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

No imputation
If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.02138889
Resident Withholding Tax per
financial product
$0.00381944
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A – DRP has been suspended for this dividend due to
the proposed equity raise announced by Heartland
Start date and end date for
determining market price for DRP

Date strike price to be announced (if
not available at this time)

Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms

Section 5: Authority for this announcement
Name of person authorised to make
this announcement
Andrew Dixson, Chief Financial Officer
Contact person for this
announcement
Andrew Dixson, Chief Financial Officer
Contact phone number 09 927 9274
Contact email address Andrew.Dixson@heartland.co.nz
Date of release through MAP 23/08/2022

6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

This appendix is available as an online form
Only use this form if the online version is not available +Rule 3.20.4, 3.21, 15.3
+ See chapter 19 for defined terms
5 June 2021 Page 1

Appendix 3A.1
Notification of dividend / distribution
Information or documents not available now must be given to ASX as soon as available. Information
and documents given to ASX become ASX’s property and may be made public.
Please note that two or more corporate actions on the same security may not run with different record
dates if the timetables result in overlapping (but not identical) ex-periods. It is permissible to run
different corporate actions with the same record date except in the case of consolidations or splits
which cannot run at the same time as any other corporate action for that entity.
*Denotes minimum information required for first lodgement of this form.
**Denotes information that must be provided on or before business day 0 of the relevant Appendix 6A
or Appendix 7A timetable.
The balance of the information, where applicable, must be provided as soon as reasonably practicable
by the entity.
Where a dividend/distribution is announced at the same time as Appendix 4D, 4E or 4F the online
form relating to the dividend/distribution should be submitted after the Appendix 4D, 4E or 4F and
before other material such as media releases or analyst presentations. Refer to Guidance Note 14
ASX Market Announcements Platform.
Part 1 – Entity and announcement details
Question
no
Question Answer
1.1 *Name of entity Heartland Group Holdings Limited
1.2 *Registration type and number
One of ABN/ARSN/ARBN/ACN or other registration
type and number (if “other” please specify what type of
registration number has been provided).
ARBN 627 849 576
1.3 *ASX issuer code HGH
1.4 *The announcement is
Tick whichever is applicable.
☒ New announcement
☐ Update/amendment to previous
announcement
☐ Cancellation of previous announcement
Note: An entity announcing the cancellation, deferral
or reduction of a previously announced dividend or
distribution on a quoted security must include in the
announcement an explanation satisfactory to ASX of
the entity’s reasons for doing so (see rule 3.21). In the
case of a cancellation, this explanation may be
included in the ‘Reason for cancellation’ in the
response to Q1.4c below or in a separate
announcement to the market. In the case of a deferral
or reduction, this explanation may be included in the
‘Reason for update’ in the response to Q1.4a below or
in a separate announcement to the market.
Note that this requirement only applies to actual
dividends/ distributions that the entity has announced
it will pay. It does not apply to an estimated
dividend/distribution on units of listed trusts, units of
quoted ETFs or Managed Funds, or preference
securities provided in response to Q2A.9 where the
final dividend/distribution has yet to be announced.

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 2
1.4a *Reason for update
Mandatory only if “Update” ticked in Q1.4 above. A
reason must be provided for an update.
Not applicable
1.4b *Date of previous announcement to this
update
Mandatory only if “Update” ticked in Q1.4 above.
Not applicable
1.4c *Reason for cancellation
Mandatory only if “Cancellation” ticked in Q1.4 above.
If information has previously been provided in Part 3D
of the form “Preference security distribution rate
details” please also confirm whether the rate changes
remain in place for the security or are also cancelled.
Not applicable
1.4d *Date of previous announcement to this
cancellation
Mandatory only if “Cancellation” ticked in Q1.4 above.
Not applicable
1.5 *Date of this announcement
The date of lodgement of the form by the entity via
ASX Online.
23/08/2022
1.6 *Applicable ASX
+
security code and
description for dividend / distribution
Please select the security to which the notification
applies. Only one security can be selected for each
form.
ASX
+
security code: HGH
+
Security description: ORDINARY FULLY
PAID FOREIGN EXEMPT NZX

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 3
Part 2 – All dividends / distributions
Part 2A – Basic details
Questio
n No.
Question Answer
2A.1 *Type of dividend/distribution
Each form can only relate to one record date and
payment date but may have multiple types of payment
for example an ordinary and special dividend. Please
note that dividends/distributions on units in listed
trusts, units in quoted ETFs or Managed Funds, and
preference securities are classified as “Ordinary”.
☒ Ordinary (must be cash) Please complete Part
3A.
☐ Special (must be cash) Please complete Part
3B.
☐ Scrip (must be scrip) Please complete Part 3C.

2A.2 *The dividend/distribution:
Tick one only to indicate length of period to which the
dividend/distribution applies. ASX’s system classifies
interim/final dividends/distributions as six monthly if
both are paid. If a final only is paid it is classified as
relating to a period of twelve months. Where a scrip
or special dividend/distribution is paid at the same
time as an ordinary dividend/distribution it has the
same period classification as the ordinary.
If the dividend/distribution is special and/or scrip only
then “does not relate to a specific period within the
financial year in which it was paid” may be applicable.
☐ relates to a period of one month.
☐ relates to a period of one quarter.
☒ relates to a period of six months.
☐ relates to a period of twelve months.
☐ does not relate to a specific period within
the financial year in which it was paid.
2A.3 *The dividend/distribution relates to the
financial reporting or payment period
ended/ending (date)
The period ended date must match the end date of
the reporting period of any Appendix 4D, 4E or 4F
lodged by the entity at the same time as this form and
which includes the details of the dividend/distribution
announced in this form. For dividends/distributions on
units in listed trusts, units in quoted ETFs or Managed
Funds, and preference securities, the period
ended/ending date may correspond to the payment
date and may be a future date. If a special or scrip
dividend/distribution is notified at the same time as
another dividend/distribution which relates to a period
of one month, one quarter, six months or twelve
months then the special or scrip dividend/distribution
will be characterised with the same period type and
will have the same period ended as that
dividend/distribution. If the dividend/distribution is
special and/or scrip only and “does not relate to a
specific period within the financial year in which it was
paid” has been ticked in Q2A.2, then a period ended
date may not be applicable.
30/06/2022
2A.4 *
+
Record date
The record date must be at least four business days
from current date (refer Appendix 6A section 1).
Please note that the record date and ex date cannot
be changed (even to postpone it or cancel it) any later
than 12 noon Sydney time on the day before the
previous ex date advised.
26/08/2022

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 4
2A.5 *Ex date
The ex date is one business day before record date
(i.e. business day 3 if the record date is business day
4). Refer to Appendix 6A section 1. Securities will
trade “ex” dividend/distribution from the ex date.
Please note that the record date and ex date cannot
be changed (even to postpone it or cancel it) any later
than 12 noon Sydney time on the day before the
previous ex date advised.
25/08/2022
2A.6 *Payment date
The payment date must be after the record date. If
the entity has a dividend or distribution plan, the
payment date must be at least 2 business days after
the record date. Refer to Appendix 6A section 1. For
a scrip dividend/distribution this date will be the same
as the issue date referred to in Q3C.4 of this form.
14/09/2022
2A.7 *Are any of the below approvals required
for the dividend/distribution before
business day 0 of the timetable?
•
+
Security holder approval
• Court approval
• Lodgement of court order with
+
ASIC
• ACCC approval
• FIRB approval
• Another approval/condition external to
the entity required to be given/met
before business day 0 of the timetable
for the dividend/distribution.
If any of the above approvals apply to the
dividend/distribution before business day 0 of the
timetable, please answer ‘yes’ and provide details at
Q2A.7a. If “no” go to Q2A.8.
The purpose of the question is to confirm that relevant
approvals are received prior to ASX establishing an
ex market in the securities. If the entity wishes to
disclose approvals or conditions which are to be
resolved at a later date it should use Part 5 “Further
information”.
No
2A.7a Approvals
Select appropriate approval from drop down box as applicable. More than one approval can be selected. This
question refers only to events which take place before business day 0 of the timetable. The purpose of the
question is to confirm that relevant approvals are received prior to ASX establishing an ex market in the securities.
The “Date for determination” is the date that you expect to know if the approval is given for example the date of the
security holder meeting in the case of security holder approval or the date of the court hearing in the case of court
approval. If the entity wishes to disclose approvals or conditions which are to be resolved at a later date it should
use Part 5 “Further information”.

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 5
*Approval/condition *Date for
determination
*Is the date
estimated or
actual?
**Approval
received/
condition
met?
Only answer this
question when
you know the
outcome of the
approval –
please advise on
or before
business day 0
of the relevant
Appendix 6A or
Appendix 7A
timetable.
Comments
+
Security holder
approval

☐ Estimated
OR
☐ Actual
☐ Yes
☐ No

Court approval
☐ Estimated
OR
☐ Actual
☐ Yes
☐ No

Lodgement of court
order with
+
ASIC

☐ Estimated
OR
☐ Actual
☐ Yes
☐ No

ACCC approval
☐ Estimated
OR
☐ Actual
☐ Yes
☐ No

FIRB approval
☐ Estimated
OR
☐ Actual
☐ Yes
☐ No

Other (please
specify in
comment section)

☐ Estimated
OR
☐ Actual
☐ Yes
☐ No

2A.8 *Currency in which the dividend/distribution
is made (“primary currency”)
Primary currency will be the currency in which all other
questions relating to the dividend/distribution will
appear excepting those relating to payment in a
different currency. For dividends/distributions paid in a
currency other than AUD please answer 2A.9a-2A.9c.
If the primary currency is NZD please also complete
Part 3F.
NZD – New Zealand Dollar

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 6
2A.9 *Total dividend/distribution payment
amount per
+
security (in primary currency)
for all dividends/ distributions notified in this
form
This amount should be the total of any Ordinary, Scrip,
Special and Supplementary dividend/distribution
announced using this form. An estimated
dividend/distribution is only permitted in the case of
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities.

NZD 0.06470588

Actual
2A.9a AUD equivalent to total dividend/distribution
amount per
+
security
If primary currency is non-AUD.
If more than one dividend/distribution type is included
in this announcement (e.g. ordinary and special), this
total should be the total of those types.
ASX publishes an AUD equivalent amount for non-
AUD dividends/distributions. If this amount is not
provided by the entity it is calculated and published
using the RBA rate of exchange on the day before the
ex date. The entity should only populate this question
if an actual amount is known. If amount not known
please answer 2A.9b. If known go to 2A.9c.

2A.9b If AUD equivalent not known, date for
information to be released
If primary currency is non-AUD.
8/09/2022
Actual
2A.9c FX rate (in format AUD rate / primary
currency rate):
If primary currency is non-AUD.
AUD1.00 /
2A.10 *Does the entity have arrangements
relating to the currency in which the
dividend/distribution is paid to
+
security
holders that it wishes to disclose to the
market?
If “yes”, please complete Part 2B.
It is not mandatory to disclose currency arrangements
to the market. In particular, it does not refer to
arrangements made between individual security
holders and the share registry or entity on an ad hoc or
one-off basis and it does not refer to arrangements
offered by the registry independently of the entity.
If the entity intends to disclose currency arrangements
to the market it must do so through this form although
it may supplement the information in the form with
further PDF announcements.
No
2A.11 *Does the entity have a securities plan for
dividends/distributions on this security?
This information is required by Appendix 6A section 1.
More than one option may be selected. If the entity
has a DRP please answer Q2A.11a, if the entity has a
BSP please answer Q2A.11b, if the entity has another

security plan please answer Q2A.11c.
If the entity has a plan but it does not apply to the
security which is the subject of this form the entity
should answer “We do not have a securities plan for
dividends/distributions on this security”.
☒ We have a Dividend/Distribution
Reinvestment Plan (DRP)
☐ We have a Bonus
+
Security Plan or
equivalent (BSP)
☐ We have another
+
security plan (Plan)
☐ We do not have a securities plan for
dividends/distributions on this security

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 7
2A.11a *If the entity has a DRP, is the DRP
applicable to this dividend/distribution
This information is required by Appendix 6A section 1.
If “yes”, please answer Q2A.11a(i). If “no”, ASX will
assume the DRP is suspended for this
dividend/distribution.
No
2A.11a(i)
*DRP Status in respect of this
dividend/distribution
Please select one and complete Part 4A.
Note that “Full DRP” includes plans which may have
limited exceptions for example exclusion of US or
other foreign holders. The term is designed primarily
to distinguish those plans which apply only to specific
subgroups of security holders such as “retail” holders.

☐ DRP for retail
+
security holders only
The entity has a DRP which applies to this
dividend/distribution only for retail security holders.
☐ Full DRP offered
The entity has a DRP which applies to this
dividend/distribution only for all security holders.
☐ DRP subject to
+
security holder approval
The entity has a DRP which is active for this
dividend/distribution subject to security holder
approval.
2A.11b *If the entity has a BSP, is the BSP
applicable to this
+
dividend/distribution?
This information is required by Appendix 6A section 1.
If “yes”, please answer Q2A.11b(i). If “no”, ASX will
assume the BSP is suspended for this
dividend/distribution.
Yes or No
2A.11b(i)
*BSP status in respect of this
dividend/distribution
Please select one and complete Part 4B. If the entity
has a BSP subject to security holder approval please
choose the appropriate box above and make a note of
the approval requirement in “Part 5 Further
information” at the end of this form.
☐ BSP for retail
+
security holders only
The entity has a BSP which applies to this
dividend/distribution only for retail security holders.
☐ Full BSP offered
The entity has a BSP which applies to this
dividend/distribution only for all security holders.
2A.11c *If the entity has another
+
security plan, is
that
+
security plan applicable to this
+
dividend/distribution?
If “yes” please complete Part 4C.
Yes or No
2A.12 *Does the entity have tax component
information apart from franking?
This refers to the information ordinarily provided under
Subdivision 12-H of Schedule 1 to the Tax
Administration Act 1953. If “yes” please complete Part
3E.
No
2A.13 Withholding tax rate applicable to the
dividend/distribution
For non-Australian entities.
ASX only captures the dividend/distribution withholding
tax rate in respect of dividends/distributions paid by
foreign resident listed entities to Australian resident
security holders. If a dividend/distribution is payable to
an Australian resident security holder, please advise
the applicable dividend/distribution withholding tax rate
(assuming no exemptions are sought by and granted
to the holder). Should you wish to provide further
information please use Part 5 - Further information at
the end of this form.
15%

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 8
Part 2B – Currency information
Part 2B to be completed if you answered “yes” to Q2A.10.
Question
No.
Question Answer
2B.1 *Does the entity default to payment in
certain currencies dependent upon certain
attributes such as the banking instruction or
registered address of the
+
security holder?
(For example NZD to residents of New
Zealand and/or USD to residents of the
U.S.A.)
Referred to as “default arrangements”. This does not
exclude other criteria – banking instruction and
registered address are merely provided as examples.
This question should be answered on the basis of the
entity’s policy applicable to all security holders. It does
not refer to arrangements made between individual
security holders and the share registry or entity on an
ad hoc or one-off basis and it does not refer to
arrangements offered by the registry independently of
the entity.
If “yes” please fill out the balance of the questions in
Part 2B. If “no” fill out question 2B.2 only.
Yes or No
2B.2 *Please provide a description of your
currency arrangements
If you have default arrangements please provide an
overview of how the arrangement operates and
answer specific questions below about currencies in
which you pay, whether there is a choice to receive a
currency other than the default, election dates, where
forms can be obtained etc.
If you do not have default arrangements you should
include here a complete description of your currency
arrangements including when and where any currency
election should be submitted. Listed entities in this
category are not required to disclose the currencies in
which they pay or publish the foreign currency
dividend amounts (“payment currency equivalent
amount per security”) or foreign exchange rates. You
do not need to fill out any further questions in Part 2B.

2B.2a Other currency/currencies in which the
dividend/distribution will be paid
If there is more than one payment currency other than
the primary currency it is mandatory to advise the
additional currencies but not mandatory to advise the
payment currency equivalent amount. If the entity
wishes it may advise this amount by way of update
when known. Note: if more than one
dividend/distribution type is included in this
announcement (e.g. ordinary and special), the
payment currency equivalent amount should be the
total of those types and the equivalent of the total
amount in Q2A.9.
*Non primary payment currency:
Payment currency equivalent
amount per
+
security:
2B.2b Please provide the exchange rates used for
non-primary currency payments

2B.2c If payment currency equivalent and
exchange rates not known, date for
information to be released

Estimated or actual

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 9
2B.3 *Can the
+
security holder choose to receive
a currency different to the currency they
would receive under the default
arrangements?
Yes or No
2B.3a Please describe what choices are available
to a
+
security holder to receive a currency
different to the currency they would receive
under the default arrangements
For example if the security holder would receive AUD
under the default policy based upon an Australian
bank account being provided, can they change this to
NZD by providing a banking instruction relating to a
New Zealand bank account?

2B.3b *Date and time by which any document or
communication relating to the above
arrangements must be received in order to
be effective for this dividend/distribution
Please enter the time in Sydney time (i.e. AEST or,
when daylight savings is in operation, AEDST) using
24 hour convention e.g. 6.00pm should be entered as
18:00.

2B.3c Please provide a link to, or indicate where
relevant forms can be obtained and state
how and where they must be lodged.

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 10
Part 3 – Dividend/distribution amounts per type and other details
Please state amounts in the dividend/distribution primary currency stated at Q2A.9.
Part 3A – Ordinary dividend/distribution
Part 3A to be completed if “Ordinary” selected in Q2A.1.
Question
No.
Question Answer
3A.1 *Is the ordinary dividend/distribution
estimated at this time
If "yes” Q3A.1a and 3A.1a(i) must be completed if “no”
Q3A.1b must be completed upon the first
announcement of a dividend/distribution. An estimate
is only permitted in the case of dividends/ distributions
on units in listed trusts, units in quoted ETFs or
Managed Funds, and preference securities.
No
3A.1a
*Ordinary dividend/distribution estimated
amount per
+
security
An estimate is only permitted in the case of
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities.

3A.1a(i) *Date that actual ordinary amount will be
announced

Estimated or Actual
3A.1b *Ordinary dividend/distribution amount per
+
security
Please provide the amount in the primary currency.
NZD 0.05500000
3A.2 *Is the ordinary dividend/distribution
franked?
If “yes”, please answer Q3A.2a. If “no” go straight to
Q3A.3. This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities.
No
3A.2a *Is the ordinary dividend/distribution fully
franked?
This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities.
Yes or No
3A.3 *Percentage of ordinary
dividend/distribution that is franked
Please provide the percentage to which the
dividend/distribution is franked. (if 100% franked, then
100%, if 100% unfranked then 0%). This question is
not mandatory for dividends/distributions on units in
listed trusts, units in quoted ETFs or Managed Funds,
and preference securities.

0%

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 11
3A.3a *Applicable corporate tax rate for franking
credit (%)
Do not answer for 100% unfranked
dividends/distributions.
Please provide the applicable corporate tax rate. This
question is not mandatory for dividends/distributions
on units in listed trusts, units in quoted ETFs or
Managed Funds, and preference securities.

%
3A.4 *Ordinary dividend/distribution franked
amount per
+
security
Amount of dividend/distribution that is franked. Please
provide the amount in the primary currency. In the
case of dividends announced in conjunction with
Appendix 4D and 4E the franked amount per security
must be provided. This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities. If the dividend/distribution is 100%
unfranked please answer “$0.00”. 3A.4 franked
amount + 3A.6 unfranked amount + 3A.7 conduit
foreign income amount should equal 3A.1b
dividend/distribution amount per security.
NZD 0.00
3A.5 *Percentage of ordinary
dividend/distribution that is unfranked
Please provide the percentage to which the
dividend/distribution is unfranked (if 100% unfranked,
then 100%. If 100% franked then 0%). This question
is not mandatory for dividends/distributions on units in
listed trusts, units in quoted ETFs or Managed Funds,
and preference securities.

100%
3A.6 *Ordinary dividend/distribution unfranked
amount per
+
security excluding conduit
foreign income amount
Amount of dividend/distribution that is unfranked
excluding any conduit foreign income. Please provide
the amount in the primary currency. This question is
not mandatory for dividends/distributions on units in
listed trusts, units in quoted ETFs or Managed Funds,
and preference securities. If the dividend/distribution
is fully franked please answer “$0.00”. 3A.4 franked
amount + 3A.6 unfranked amount + 3A.7 conduit
foreign income amount should equal 3A.1b
dividend/distribution amount per security.
NZD 0.05500000
3A.7 *Ordinary dividend/distribution conduit
foreign income amount per
+
security
For Australian entities only.
Please provide the amount in the primary currency.
This information is required by Appendix 6A section 1
in respect of dividends. This question is not
mandatory for dividends/distributions on units in listed
trusts, units in quoted ETFs or Managed Funds, and
preference securities. 3A.4 franked amount + 3A.6
unfranked amount + 3A.7 conduit foreign income
amount should equal 3A.1b dividend/distribution
amount per security.

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 12
Part 3B – Special dividend/distribution
Part 3B to be completed if “Special” selected in Q2A.1.
Question
No.
Question Answer
3B.1 *Is the special dividend/distribution
estimated at this time
If “yes” Q3B.1a and 3B.1a(i) must be completed if “no”
Q3B.1b must be completed upon the first
announcement of a dividend/distribution. An estimate
is only permitted in the case of dividends/ distributions
on units in listed trusts, units in quoted ETFs or
Managed Funds, and preference securities.
Yes or No
3B.1a
*Special dividend/distribution estimated
amount per
+
security
An estimate is only permitted in the case of
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities. Please answer Q3F.2a(i).

3B.1a(i) *Date that actual special amount per
+
security will be announced

Estimated or Actual
3B.1b *Special dividend/distribution amount per
+
security
Please provide the amount in the primary currency.

3B.2 *Is special dividend/distribution franked?
If “yes” please answer Q3B.2a. If “no” go straight to
Q3B.3. This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities.
Yes or No
3B.2a *Is the special dividend/distribution fully
franked?
This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities.
Yes or No
3B.3 *Percentage of special dividend/distribution
that is franked
Please provide the percentage to which the
dividend/distribution is franked. (if 100% franked, then
100%, if 100% unfranked then 0%). This question is
not mandatory for dividends/distributions on units in
listed trusts, units in quoted ETFs or Managed Funds,
and preference securities.

%
3B.3a *Applicable corporate tax rate for franking
credit (%)
Do not answer for 100% unfranked
dividends/distributions.
Please provide the applicable corporate tax rate. This
question is not mandatory for dividends/distributions
on units in listed trusts, units in quoted ETFs or
Managed Funds, and preference securities.

%

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 13
3B.4 *Special dividend/distribution franked
amount per
+
security
Amount of dividend/distribution that is franked. Please
provide the amount in the primary currency. In the
case of dividends announced in conjunction with
Appendix 4D and 4E the franked amount per security
must be provided. This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities. If the dividend/distribution is 100%
unfranked please answer “$0.00”. 3B.4 franked
amount + 3B.6 unfranked amount + 3B.7 conduit
foreign income amount should equal 3B.1b special
dividend/distribution amount per security.

3B.5 *Percentage of special dividend/distribution
that is unfranked
Please provide the percentage to which the
dividend/distribution is unfranked (if 100% unfranked,
then 100%. If 100% franked then 0%). This question
is not mandatory for dividends/distributions on units in
listed trusts, units in quoted ETFs or Managed Funds,
and preference securities.

%
3B.6 *Special dividend/distribution unfranked
amount per +security excluding conduit
foreign income amount
Amount of dividend/distribution that is unfranked.
Please provide the amount in the primary currency.
This question is not mandatory for dividends/
distributions on units in listed trusts, units in quoted
ETFs or Managed Funds, and preference securities. If
the dividend/distribution is 100% franked please
answer “$0.00”. 3B.4 franked amount + 3B.6
unfranked amount + 3B.7 conduit foreign income
amount should equal 3B.1b special
dividend/distribution amount per security.

3B.7 *Special dividend/distribution conduit
foreign income amount per
+
security
For Australian entities only.
Please provide the amount in the primary currency.
This information is required by Appendix 6A section 1
in respect of dividends. This question is not
mandatory for dividends/distributions on units in listed
trusts, units in quoted ETFs or Managed Funds, and
preference securities. 3B.4 franked amount + 3B.6
unfranked amount + 3B.7 conduit foreign income
amount should equal 3B.1b special
dividend/distribution amount per security.

Part 3C – Scrip dividend/distribution
Part 3C to be completed if “Scrip” selected in Q2A.1.
Question
No.
Question Answer
3C.1 *Is the scrip dividend/distribution estimated
at this time
If “yes” Q3C.1a + 3C.1a(i) must be completed if “no”
Q3C.1b must be completed upon the first
announcement of a dividend/distribution. An estimate is
only permitted in the case of dividends/ distributions on
units in listed trusts, units in quoted ETFs or Managed
Funds, and preference securities.
Yes or No

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Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 14
3C.1a
*Scrip dividend/distribution estimated
amount per
+
security
An estimate is only permitted in the case of
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities.

3C.1a(i) *Date that actual scrip amount will be
announced

3C.1b *Scrip dividend/distribution amount per
+
security
Please provide the amount in the primary currency in
dollar denomination (or foreign currency equivalent for
foreign currency dividends/distributions).

3C.2 *Scrip ratio
For example where you pay one security for each five
securities held, the answer is every 01.00 scrip
dividend/distribution security will be paid for each 05.00
securities held.
the scrip dividend/distribution will be on the
basis that
___________________
+
security (/ies) will
be paid for
every
___________________
+
security (/ies) held
3C.3 *Scrip fraction rounding
Please select the appropriate description of how
fractions will be handled. If you do not have a rounding
policy please choose “Fractions rounded down to the
nearest whole number or fractions disregarded”.
☐ Fractions rounded up to the next whole
number
☐ Fractions rounded down to the nearest
whole number or fractions disregarded
☐ Fractions sold and proceeds distributed
☐ Fractions of 0.5 and over rounded up
☐ Fractions over 0.5 rounded up
3C.4 Scrip dividend/distribution
+
securities
+
issue
date
This is the date on which the scrip dividend securities
are entered into the holdings of holders entitled to the
dividend/distribution. This is usually the same as the
payment date –Q2.A6.

3C.5 *Will the scrip dividend/distribution
+
securities be a new issue
If “yes” please answer Q3C.5a. If “no” go straight to
Q3C.6.
Yes or No
3C.5a *Do the scrip dividend/distribution
+
securities
rank pari passu from
+
issue date?
Pari passu means “on an equal footing” for example if
the securities will not receive an upcoming payment that
existing securities in the same class will receive, they
do not rank pari passu. If “yes” please answer Q3C.5b.
If “no” go straight to Q3C.6.
Yes or No
3C.5b *Non-ranking period end date
The date at the end of the dividend/distribution period
(i.e. the period specified in item 2A.3 or another period
as the case may be) after which the issued securities
rank equal (i.e. pari passu) for the next announced
dividend/distribution. For example, if the new securities
are not entitled to participate in a dividend announced
for the period ending 30 June 2013, but are entitled to
any dividend announced thereafter, then the answer to
this question is 30 June 2013.

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Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 15
3C.6 *Is scrip dividend/distribution franked
If “yes” please answer Q3C.6a. If “no” go straight to
Q3C.7. This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities.
Yes or No
3C.6a *Is the scrip dividend/distribution fully
franked
This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities.
Yes or No
3C.7 *Percentage of scrip dividend/distribution
that is franked
Please provide the percentage to which the
dividend/distribution is franked. (if 100% franked, then
100%, if 100% unfranked then 0%). This question is
not mandatory for dividends/distributions on units in
listed trusts, units in quoted ETFs or Managed Funds,
and preference securities.

%
3C.7a *Applicable corporate tax rate for franking
credit (%)
Do not answer for 100% unfranked
dividends/distributions.
Please provide the applicable corporate tax rate. This
question is not mandatory for dividends/distributions on
units in listed trusts, units in quoted ETFs or Managed
Funds, and preference securities.

%
3C.8 *Scrip dividend/distribution franked amount
per
+
security
Amount of dividend/distribution that is franked. Please
provide the amount in the primary currency. In the case
of dividends announced in conjunction with Appendix
4D and 4E the franked amount per security must be
provided. This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities. If the dividend/distribution is 100%
unfranked please answer “$0.00”. 3C.8 franked amount
+ 3C.10 unfranked amount + 3C.11 conduit foreign
income amount should equal 3C.1b scrip
dividend/distribution amount per security.

3C.9 *Percentage of scrip dividend/distribution
that is unfranked
Please provide the percentage to which the
dividend/distribution is unfranked (if 100% unfranked,
then 100%. If 100% franked then 0%). This question is
not mandatory for dividends/distributions on units in
listed trusts, units in quoted ETFs or Managed Funds,
and preference securities.

%
3C.10 *Scrip dividend/distribution unfranked
amount per
+
security excluding conduit
foreign income amount
Amount of dividend/distribution that is unfranked.
Please provide the amount in the primary currency.
This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities. If the dividend/distribution is fully franked
please answer “$0.00”. 3C.8 franked amount + 3C.10
unfranked amount + 3C.11 conduit foreign income

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Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 16
amount should equal 3C.1b scrip dividend/distribution
amount per security.
3C.11 *Scrip dividend/distribution conduit foreign
income amount per
+
security
For Australian entities only.
Please provide the amount in the primary currency.
This information is required by Appendix 6A section 1 in
respect of dividends. This question is not mandatory for
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities. Not applicable for non- Australian entities.
3C.8 franked amount + 3C.10 unfranked amount +
3C.11 conduit foreign income amount should equal
3C.1b scrip dividend/distribution amount per security.

Part 3D – Preference
+
security distribution rate details
Part 3D to be completed if the dividend/distribution is for a preference
+
security.
Question
No.
Question Answer
3D.1 Start date of payment period
The day specified should be the first day included in the
interest period.

3D.2 End date of payment period
The day specified should be the last day included in the
interest period.

3D.3 Date dividend/distribution rate is set
3D.4 Describe how the date that
dividend/distribution rate is set is determined
Please describe how the date for setting the
dividend/distribution date is determined, for example the
first day of each quarter of the calendar year.

3D.5 Number of days in the dividend/distribution
period

3D.6 Dividend/distribution base rate
%
3D.7 Comments on how dividend/distribution
base rate is set
You may provide information on how the base rate is
set.

3D.8 Dividend/distribution margin
%
3D.9 Comments on how dividend/distribution
margin is set
You may provide information on how the margin is set.

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 17
3D.10 Any other rate used in calculating
dividend/distribution rate
Any other rate used in calculating the
dividend/distribution rate, other than the base rate and
margin, for the securities – expressed as a
percentage. This may be a positive or negative
number. Together the base rate, margin and other
rate should add up to the total dividend/distribution
rate for the period.

%
3D.11 Comments on how other rate used in
calculating dividend/distribution rate is set

3D.12 Total dividend/distribution rate for the
period (pa)
Please provide the total dividend/distribution payment
rate (per annum). The rate should be the addition of
base rate, margin and any other rate applied in
calculating total dividend/distribution rate.

%
3D.13 Comment on how total distribution rate is
set

Part 3E – Other – distribution components / tax
Part 3E to be completed if you answered “yes” to Q2A.12.
Question
No.
Question Answer
3E.1 Please indicate where and when
information about tax components can be
obtained (you may enter a url)
If the entity is required to provide information regarding
taxation, for example the notice for the purpose of
Subdivision 12-H of Schedule 1 of the Taxation
Administration Act 1953 (Cth), please indicate here
where it may be found and/or when the entity expects
to announce this information.

3E.2 Please indicate the following information if applicable. (Refer Annual Investment Income
Report (AIIR) specification for further information)
Field Name AIIR
Specification
Reference
Value Estimated/Actual
If a value is entered in the
previous column you must
indicate if this value is
estimated or actual
Interest 9.79
☐ Estimated
OR
☐ Actual
Unfranked dividends not declared
to be conduit foreign income
9.80
☐ Estimated
OR
☐ Actual

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Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 18
Unfranked dividends declared to
be conduit foreign income
9.81
☐ Estimated
OR
☐ Actual
Assessable foreign source income 9.91
☐ Estimated
OR
☐ Actual
Tax-free amounts 9.96
☐ Estimated
OR
☐ Actual
Tax-deferred amounts 9.97
☐ Estimated
OR
☐ Actual
Managed investment trust fund
payments
9.105
☐ Estimated
OR
☐ Actual
Franked distributions from trusts 9.120
☐ Estimated
OR
☐ Actual
Gross cash distribution 9.121
☐ Estimated
OR
☐ Actual
Interest exempt from withholding 9.122
☐ Estimated
OR
☐ Actual
Capital Gains discount method –
Non-Taxable Australian property
9.124
☐ Estimated
OR
☐ Actual
Capital Gains other Non-Taxable
Australian property
9.126
☐ Estimated
OR
☐ Actual

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Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 19
Other income 9.130
☐ Estimated
OR
☐ Actual
Royalties 9.135
☐ Estimated
OR
☐ Actual
NCMI
☐ Estimated
OR
☐ Actual
Excluded from NCMI
☐ Estimated
OR
☐ Actual

Part 3F – NZD dividend/distribution – supplementary dividend/distribution
Part 3F to be completed for dividends/distributions whose primary currency is NZD.
Question
No.
Question Answer
3F.1 Is a supplementary dividend/distribution
payable?
If “yes please answer 3F.2, if “no”, Q3F.2 – 3F.7 are
not applicable.
Yes
3F.2 Is the supplementary dividend/distribution
estimated at this time?
If “yes” please answer Q3F.2a(i) and Q3F.2a(ii). If
“no” go to Q3F.2b. Please answer either Q3f.2a and
3F.2a(i), or Q3F.2b. An estimate is only permitted in
the case of dividends/distributions on units in listed
trusts, units in quoted ETFs or Managed Funds, and
preference securities.
No
3F.2a Supplementary dividend/distribution
estimated amount per
+
security
Please provide the amount in NZD. Please answer
Q3F.2a(i). An estimate is only permitted in the case of
dividends/distributions on units in listed trusts, units in
quoted ETFs or Managed Funds, and preference
securities.

3F.2a(i) Date that actual supplementary
dividend/distribution amount per
+
security
will be announced
N/A
3F.2b Supplementary dividend/distribution
amount per
+
security
Please provide the amount in NZD. Please answer
either 3Qf.2a and 3F.2a(i),- or Q3F.2b.
NZD 0.00970588
3F.3 Is the supplementary dividend/distribution
franked?
No

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Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 20
3F.3a Is the supplementary dividend/distribution
fully franked?
Yes or No
3F.4 Percentage of supplementary
dividend/distribution that is franked
Please provide the percentage to which the
dividend/distribution is franked. (if 100% franked, then
100%, if 100% unfranked then 0%).

0%
3F.4a Applicable corporate tax rate for franking
credit (%)
Do not answer for 100% unfranked
dividends/distributions.
Please provide the applicable corporate tax rate.

%
3F.5 Supplementary dividend/distribution
franked amount per
+
security
Amount of dividend/distribution that is franked. Please
provide the amount in the primary currency. In the
case of dividends announced in conjunction with
Appendix 4D and 4E the franked amount per security
must be provided. If the dividend/distribution is 100%
unfranked please answer “$0.00”. 3F.5 franked
amount + 3F.7 unfranked amount should equal 3F.2b
supplementary dividend/distribution amount per
security.
NZD 0.00000000
3F.6 Percentage of supplementary
dividend/distribution that is unfranked
Please provide the percentage to which the
dividend/distribution is unfranked (if 100% unfranked,
then 100%).

100%
3F.7
Supplementary dividend/distribution
unfranked amount per
+
security
Amount of dividend/distribution that is franked. Please
provide the amount in the primary currency. In the
case of dividends announced in conjunction with
Appendix 4D and 4E the franked amount per security
must be provided. If the dividend/distribution is 100%
unfranked please answer “$0.00”. 3F.5 franked
amount + 3F.7 unfranked amount should equal 3F.2b
supplementary dividend/distribution amount per
security.
NZD 0.00970588

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 21
Part 4 – Dividend/distribution Reinvestment Plan (DRP) / Bonus
+
Security
Plan (BSP) / Other Plan
Currencies used in this part are primary currency as advised at Q2A.8.
Part 4A – Dividend/distribution Reinvestment Plan (DRP)
Part 4A to be completed if “DRP” selected at Q2A.11 and you answered “yes” to Q2A.11a – “the DRP
applies to this dividend/distribution”.
Question
No.
Question Answer
4A.1 *What is the default option if
+
security
holders do not indicate whether they want
to participate in the DRP?
☐ Participation in DRP (i.e.
+
securities
issued)
☐ Do not participate in DRP(i.e. cash
payment)

4A.2 *Last date and time for lodgement of
election notices to share registry under
DRP
This information is required by Appendix 6A section 1.
Appendix 6A mandates a last election date of at least
1 business day after the record date. Please enter the
time in Sydney time (i.e. AEST or, when daylight
savings is in operation, AEDST); using 24 hour
convention e.g. 6.00pm should be entered as 18:00.

4A.3 *DRP discount rate
This information is required by Appendix 6A section 1.
If there is no discount please answer “0%”. One of
either Q4A.3 or Q4A.4 must be answered.

%
4A.4 *Period of calculation of reinvestment price
This information is required by Appendix 6A section 1.
One of either Q4A.3 or Q4A.4 must be answered. If
you do not know the dates for calculating the
reinvestment price but can describe the methodology
please answer question Q4A.5.
Start date:
End date:
4A.5 *DRP price calculation methodology
Please describe the methodology for determining the
DRP period of calculation of reinvestment price or for
calculating the DRP price where another methodology
is used.

4A.6 DRP price (including any discount)
Please provide the amount in the primary currency.

4A.7 DRP
+
securities
+
issue date
This date is the date on which the DRP securities are
entered into the holdings of DRP participants. This is
usually the same as the payment date –Q2A.6. The
issue of any new securities under any dividend or
distribution plan should be no later than 5 business
days after the payment date of the dividend per
Appendix 6A section 1.

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 22
4A.8 *Will DRP
+
securities be a new issue?
If “yes” please answer Q4A.8a, if “no” go to Q4A.9.
If the securities are a new issue, the entity must apply
for quotation of the securities using an Appendix 2A
per Appendix 6A section 1.
Yes or No
4A.8a *Do DRP
+
securities rank pari passu from
+
issue date
Pari passu means “on an equal footing” for example if
the securities will not receive an upcoming payment
that existing securities in the same class will receive,
they do not rank pari passu. If “no” please answer
Q4A.8b, if “yes” go to Q4A.9.
Yes or No
4A.8b *Non-ranking period end date
The date at the end of the dividend/distribution period
(i.e. the period specified in item 2A.3 or another period
as the case may be) after which the issued securities
rank equal (i.e. pari passu) for the next announced
dividend/distribution. For example, if the new
securities are not entitled to participate in a dividend
announced for the period ending 30 June 2013, but
are entitled to any dividend announced thereafter, then
the answer to this question is 30 June 2013.

4A.9 Is there a minimum dollar amount or
number of
+
securities required for DRP
participation?
If “yes”, please answer Q4A.9a-4A.9b, if “no” go to
4A.10.
Yes or No
4A.9a Minimum number of
+
securities required for
DRP participation

4A.9b Minimum amount for DRP participation
Please provide the amount in the primary currency.

4A.10 Is there a maximum dollar amount or
number of
+
securities required for DRP
participation?
If “yes”, please answer Q4A.10a - Q4A.10d, if “no” go
to 4A.11.
Yes or No
4A.10a Maximum number of
+
securities required for
DRP participation

4A.10b Maximum amount for DRP participation
Please provide the amount in the primary currency.

4A.10c Maximum amount/or number for DRP
participation will be applied at beneficial
level
For example if a trustee holds for more than one
beneficial owner can the trustee apply for each
beneficial owner to have the maximum applied to their
beneficial entitlement instead of the maximum being
applied to the registered holding of the trustee?
Yes or No
4A.10d Instructions regarding application of limits
at beneficial level
Please provide instructions for trustees to notify
beneficial holdings for the purpose of applying DRP
limits.

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 23
4A.11 Are there any other conditions applying to
DRP participation?
If “yes”, please answer Q4A.11a, if “no” go to 4A.12.
Yes or No
4A.11a Conditions for DRP participation
Please describe any other conditions for participation
in the DRP for example residence in a certain country.

4A.12 Link to a copy of the DRP rules
Please provide a url link to the DRP rules.

4A.13 Further information about the DRP

Part 4B –Bonus
+
Security Plan or equivalent (BSP)
Part 4B to be completed if “BSP” selected at Q2A.11 and you answered “yes” to Q2A.11b – “the BSP
applies to this dividend/distribution”.
Question
No.
Question Answer
4B.1 *What is the default option if
+
security
holders do not indicate whether they want
to participate in the BSP?
☐ Participation in BSP (i.e.
+
securities
issued)
☐ Do not participate in BSP(i.e. cash
payment)

4B.2 *Last date and time for lodgement of
election notices to share registry under
BSP
This information is required by Appendix 6A section 1.
Appendix 6A mandates a last election date of at least
1 business day after the record date. Please enter the
time in Sydney time (i.e. AEST or, when daylight
savings is in operation, AEDST); using 24 hour
convention e.g. 6.00pm should be entered as 18:00.

4B.3 *BSP discount rate
This information is required by Appendix 6A section 1.
If there is no discount please answer “0%”. One of
either Q4B.3 or Q4B.4 must be answered.

%
4B.4 *Period of calculation of BSP price
This information is required by Appendix 6A section 1.
One of either Q4B.3 or Q4B.4 must be answered. If
you do not know the dates for calculating the BSP
price but can describe the methodology please answer
question Q4B.5.
Start date:
End date:
4B.5 *BSP price calculation methodology
Please describe the methodology for determining the
period of calculation of BSP price or for calculating the
BSP price where another methodology is used.

4B.6 BSP price (including any discount)
Please provide the amount in the primary currency.

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 24
4B.7 BSP
+
securities
+
issue date
This date is the date on which the BSP securities are
entered into the holdings of BSP participants. This is
usually the same as the payment date – Q2A.6. The
issue of any new securities under any dividend or
distribution plan should be no later than 5 business
days after the payment date of the dividend per
Appendix 6A section 1.

4B.8 *Will BSP
+
securities be a new issue
If “yes” please answer Q4B.8a, if “no” go to Q4B.9.
If the securities are a new issue, the entity must apply
for quotation of the securities using an Appendix 2A
per Appendix 6A section 1.
Yes or No
4B.8a *Do BSP
+
securities rank pari passu from
+
issue date?
Pari passu means “on an equal footing” for example if
the securities will not receive an upcoming payment
that existing securities in the same class will receive,
they do not rank pari passu. If “no” please answer
Q4B.8b, if “yes” go to Q4B.9.
Yes or No
4B.8b *Non-ranking period end date
The date at the end of the dividend/distribution period
(i.e. the period specified in item 2A.3 or another
rperiod as the case may be) after which the issued
securities rank equal (i.e. pari passu) for the next
announced dividend/distribution. For example, if the
new securities are not entitled to participate in a
dividend announced for the period ending 30 June
2013, but are entitled to any dividend announced
thereafter, then the answer to this question is 30 June
2013.

4B.9 Is there a minimum dollar amount or
number of
+
securities required for BSP
participation
If “yes”, answer Q4B.9a – 4B.9b, if “no” go to 4B.10.
Yes or No
4B.9a Minimum number of
+
securities required for
BSP participation

4B.9b Minimum amount for BSP participation
Please provide the amount in the primary currency.

4B.10 Is there a maximum dollar amount or
number of
+
securities required for BSP
participation?
If “yes”, please answer Q4B.10a - 4B.10d, if “no” go to
4B.11.
Yes or No
4B.10a Maximum number of
+
securities required for
BSP participation

4B.10b Maximum amount for BSP participation
Please provide the amount in the primary currency.

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 25
4B.10c Maximum amount/or number for BSP
participation will be applied at beneficial
level
For example if a trustee holds for more than one
beneficial owner can the trustee apply for each
beneficial owner to have the maximum applied to their
beneficial entitlement instead of the maximum being
applied to the registered holding of the trustee?
Yes or No
4B.10d Instructions regarding application of limits
at beneficial level
Please provide instructions for trustees to notify
beneficial holdings for the purpose of applying BSP
limits.

4B.11 Are there any other conditions applying to
BSP participation
If “yes”, please answer Q4B.11a, if “no” go to 4B.12.
Yes or No
4B.11a Conditions for BSP participation
Please describe any other conditions for participation
in the BSP for example residence in a certain country.

4B.12 Link to a copy of the BSP rules
Please provide a url link to the BSP rules.

4B.13 Further information about the BSP

Part 4C – Other Plan
Part 4C to be completed if “another plan” selected at Q2A.11 and you answered “yes” to Q2A.11c –
“the Plan applies to this dividend/distribution”.
Question
No.
Question Answer
4C.1 *Name of the Plan
4C.2 *What is the default option if
+
security
holders do not indicate whether they want
to participate in the Plan?
☐ Participation in Plan (i.e.
+
securities
issued)
☐ Do not participate in Plan (i.e. cash
payment)

4C.3 *Last date and time for lodgement of
election notices to share registry under
Plan
This information is required by Appendix 6A section 1.
Appendix 6A mandates a last election date of at least
1 business day after the record date. Please enter the
time in Sydney time (i.e. AEST or, when daylight
savings is in operation, AEDST); using 24 hour
convention e.g. 6.00pm should be entered as 18:00.

4C.4 *Plan discount rate
If there is no discount please answer “0%”. One of
either Q4C.4 or Q4C.5 must be answered.

%

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 26
4C.5 *Period of calculation of Plan price
One of either Q4C.4 or Q4C.5 must be answered. If
you do not know the dates for calculating the Plan
price but can describe the methodology please answer
question Q4C.5.
Start date:
End date:
4C.6 *Plan price calculation methodology
Please describe the methodology for determining the
period of calculation of Plan price or for calculating the
Plan price where another methodology is used.

4C.7 Plan price (including any discount)
Please provide the amount in the primary currency.

4C.8 Plan
+
securities
+
issue date
This date is the date on which the Plan securities are
entered into the holdings of Plan participants. This is
usually the same as the payment date – Q2A.6. The
issue of any new securities under any dividend or
distribution plan should be no later than 5 business
days after the payment date of the dividend per
Appendix 6A section 1.

4C.9 *Will Plan
+
securities be a new issue
If “yes” please answer Q4C.9a, if “no” go to 4C.10.
If the securities are a new issue, the entity must apply
for quotation of the securities using an Appendix 2A
per Appendix 6A section 1.
Yes or No
4C.9a *Do Plan
+
securities rank pari passu from
+
issue date?
Pari passu means “on an equal footing” for example if
the securities will not receive an upcoming payment
that existing securities in the same class will receive,
they do not rank pari passu. If “no” please answer
Q4C.9b, if “yes” go to Q4C.10.
Yes or No
4C.9b *Non-ranking period end date
The date at the end of the dividend/distribution period
(i.e. the period specified in item 2A.3 or another period
as the case may be) after which the issued securities
rank equal (i.e. pari passu) for the next announced
dividend/distribution. For example, if the new
securities are not entitled to participate in a dividend
announced for the period ending 30 June 2013, but
are entitled to any dividend announced thereafter, then
the answer to this question is 30 June 2013.

4C.10 Is there a minimum dollar amount or
number of
+
securities required for Plan
participation?
If “yes”, please answer Q4C.10a – 4C.10b, if “no” go
to 4C.11.
Yes or No
4C.10a Minimum number of
+
securities required for
Plan participation

4C.10b Minimum amount for Plan participation
Please provide the amount in the primary currency.

This appendix is available as an online form Appendix 3A.1
Notification of dividend / distribution
+ See chapter 19 for defined terms
5 June 2021 Page 27
4C.11 Is there a maximum dollar amount or
number of
+
securities required for Plan
participation?
If “yes”, please answer Q4C.11a - 4C.11d, if “no” go
to 4C.12.
Yes or No
4C.11a Maximum number of
+
securities required for
Plan participation

4C.11b Maximum amount for Plan participation
Please provide the amount in the primary currency.

4C.11c Maximum amount/or number for Plan
participation will be applied at beneficial
level
For example if a trustee holds for more than one
beneficial owner can the trustee apply for each
beneficial owner to have the maximum applied to their
beneficial entitlement instead of the maximum being
applied to the registered holding of the trustee?
Yes or No
4C.11d Instructions regarding application of limits
at beneficial level
Please provide instructions for trustees to notify
beneficial holdings for the purpose of applying Plan
limits.

4C.12 Are there any other conditions applying to
Plan participation?
If “yes”, please answer Q4C.12a, if “no” go to 4C.13.
Yes or No
4C.12a Conditions for Plan participation
Please describe any other conditions for participation
in the Plan for example residence in a certain country.

4C.13 Link to a copy of the Plan rules
Please provide a url link to the Plan rules.

4C.14 Further information about the Plan

Part 5 – Further Information
Question
No.
Question Answer
5.1 Please provide any further information
applicable to this dividend/distribution

Introduced 22/09/14; amended 29/06/15; 01/12/19; 18/07/20; 05/06/21

---

Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | shareholders.heartland.co.nz

NZX/ASX release
23 August 2022

ASX Listing Rule 1.15.3 Statement

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) (an ASX Foreign Exempt Listing)
confirms, for the purposes of ASX Listing Rule 1.15.3, that it has complied with and continues to
comply with the Listing Rules of NZX Limited, which is its overseas home exchange.

– ENDS –

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

Andrew Dixson
Chief Financial Officer
Heartland Group Holdings Limited
DDI 09 927 9274
andrew.dixson@heartland.co.nz
Level 3, Heartland House, 35 Teed Street, Newmarket, Auckland, New Zealand

---

Corporate Action Notice
(Other than for a Distribution)

Page 1 of 2
Section 1: Issuer information (mandatory)
Name of issuer Heartland Group Holdings Limited
Class of Financial Product Ordinary Shares
NZX ticker code HGH
ISIN (If unknown, check on NZX
website)
NZHGHE0007S9
Name of Registry Link Market Services Limited
Type of corporate action
(Please mark with an X in the relevant
box/es)
Share Purchase
Plan/retail offer
x Renounceable
Rights issue or
Accelerated
Offer

Capital
reconstruction
non-
Renounceable
Rights issue or
Accelerated
Offer

Call Bonus issue
Record date 22/08/2022
Ex Date (one business day before the
Record Date)
19/08/2022
Currency NZD / AUD
Section 6: Share Purchase Plans/retail offer

Number of Financial Products to be
issued
OR
Maximum dollar amount of
Financial Products to be issued
Up to NZ$50,000 / A$45,000 per shareholder/beneficial
owner with an address recorded in Heartland’s share
register that is in New Zealand or Australia, for an
aggregate offer size of NZ$70 million, with the ability for
Heartland to accept oversubscriptions at its discretion.
Minimum application amount (if
any)
No minimum application amount.
Maximum application amount per
financial product holder
NZ$50,000 / A$45,000.
Subscription price per Financial
Product
The Shares will be issued at the lower of the price paid by
investors in Heartland’s recent Placement, being NZ$1.80
per Share, and a 2.5% discount to the five day volume
weighted average price of Heartland shares traded on
NZX during the five NZX trading days up to, and including,
the Closing Date.
Scaling reference date By reference to holdings at Record Date.
Closing date 05/09/2022
Allotment date 09/09/2022

2 of 2
Section 7: Authority for this announcement (mandatory)
Name of person authorised to make this
announcement
Phoebe Gibbons
Contact person for this announcement Phoebe Gibbons
Contact phone number +64 9 927 9986
Contact email address Phoebe.Gibbons@heartland.co.nz
Date of release through MAP 23/08/2022

---

10053505
6/9401908.2
23 August 2022
NZ RegCo
Level 1, NZX Centre
11 Cable Street
Wellington 6011
New Zealand
ASX Limited
20 Bridge Street
Sydney NSW 2000
Australia
HEARTLAND GROUP HOLDINGS LIMITED (NZX: HGH, ASX: HGH): NOTICE PURSUANT TO
CLAUSE 20(1)(a) OF SCHEDULE 8 TO THE FINANCIAL MARKETS CONDUCT REGULATIONS
2014
Heartland Group Holdings Limited (Heartland) has today announced that it will undertake a placement (the
Placement), and share purchase plan (the Share Purchase Plan) of new fully paid ordinary shares of the same
class as already quoted on the NZX and the ASX (together, the Offer).
Pursuant to clause 19 of Schedule 1 of the Financial Markets Conduct Act 2013 (FMCA), clause 20 of Schedule
8 of the Financial Markets Conduct Regulations 2014 (FMC Regulations) and the Australian Corporations Act
2001 (Cth) (Corporations Act), Heartland states that:
1 Heartland is making the Offer in reliance upon the exclusion in clause 19 of Schedule 1 of the FMCA and is
giving this notice under clause 20(1)(a) of Schedule 8 of the FMC Regulations.
2 Heartland will offer the ordinary shares for issue and issue the ordinary shares without disclosure under
Part 6D.2 of the Corporations Act.
3 Heartland is giving this notice under paragraph
708(12G) of the Corporations Act (as notionally inserted
by ASIC Instrument 18-1012) and 708A(12J) of the Corporations Act (as notionally inserted by ASIC
Instrument 22-0735) and ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 as
amended by ASIC Instrument 22-0735.
4 As at the date of this notice, Heartland is in compliance:
4.1 with the continuous disclosure obligations that apply to it in relation to Heartland's quoted ordinary
shares and its obligations under rule 1.15.2 of the ASX Listing Rules; and
4.2 with its "financial reporting obligations" within the meaning set out in clause 20(5) of Schedule 8
of the FMC Regulations.
5 As at the date of this notice, there is no information that is "excluded information" as defined in clause 20(5)
of Schedule 8 to the FMC Regulations in respect of Heartland.
The Offer is not expected to have any effect on the control of Heartland within the meaning set out in clause 48
of Schedule 1 of the FMCA.
This notice has been authorised for release to NZX and ASX by:
Michael Drumm
Group Chief Operating Officer
Heartland Group Holdings Limited

---

Financial Statements
For the year ended 30 June 2022

P. 2
Contents
Page
General Information...........................................................................................................................................................3
Auditor..................................................................................................................................................................................3
Other Material Matters......................................................................................................................................................3
Directors...............................................................................................................................................................................4
Directors’ Statements.........................................................................................................................................................6
Consolidated Statement of Comprehensive Income......................................................................................................7
Consolidated Statement of Changes in Equity................................................................................................................8
Consolidated Statement of Financial Position.................................................................................................................9
Consolidated Statement of Cash Flows............................................................................................................................10
Notes to the Financial Statements
1 Financial statements preparation........................................................................................................................12
Performance
2 Segmental analysis.................................................................................................................................................17
3 Net interest income................................................................................................................................................19
4 Net operating lease income...................................................................................................................................20
5 Other income...........................................................................................................................................................20
6 Operating expenses.................................................................................................................................................21
7 Compensation of auditor.......................................................................................................................................21
8 Impaired asset expense..........................................................................................................................................22
9 Taxation....................................................................................................................................................................23
10 Earnings per share..................................................................................................................................................25
Financial Position
11 Investments............................................................................................................................................................26
12 Derivative financial instruments..........................................................................................................................27
13 Finance receivables................................................................................................................................................29
14 Operating lease vehicles........................................................................................................................................33
15 Borrowings..............................................................................................................................................................33
16 Share capital and dividends..................................................................................................................................35
17 Other reserves........................................................................................................................................................35
18 Other balance sheet items....................................................................................................................................36
19 Acquisition..............................................................................................................................................................38
20 Related party transactions and balances............................................................................................................40
21 Fair value.................................................................................................................................................................42
Risk Management
22 Enterprise risk management.................................................................................................................................49
23 Credit risk exposure...............................................................................................................................................53
24 Liquidity risk............................................................................................................................................................57
25 Interest rate risk.....................................................................................................................................................59
Other Disclosures
26 Significant subsidiaries..........................................................................................................................................62
27 Structured entities.................................................................................................................................................62
28 Staff share ownership arrangements.................................................................................................................64
29 Insurance business, securitisation, funds management, other fiduciary activities....................................66
30 Concentrations of funding....................................................................................................................................66
31 Contingent liabilities and commitments.............................................................................................................67
32 Events after reporting date..................................................................................................................................67
Auditor’s Report..................................................................................................................................................................68

P. 3
General Information
These financial statements are issued by Heartland Group Holdings Limited (HGH) and its subsidiaries (the Group) for the year
ended 30 June 2022.
Name and address for service
The Group’s address for service is Level 3, 35 Teed Street, Newmarket, Auckland 1023.
Details of incorporation
HGH was incorporated under the Companies Act 1993 on 19 July 2018.
Auditor
KPMG
KPMG Centre
18 Viaduct Harbour Avenue
Auckland 1010
Other Material Matters
There are no material matters relating to the business or affairs of the Group that are not disclosed in these consolidated financial
statements which, if disclosed, would materially affect the decision of a person to subscribe for debt or equity instruments of
which the Group is the issuer.

P. 4
Directors
All Directors of HGH reside in New Zealand with the exception of Ellen Frances Comerford and Geoffrey Edward Summerhayes
who reside in Australia. Communications to the Directors can be sent to Heartland Group Holdings Limited, Level 3, 35 Teed
Street, Newmarket, Auckland 1023.
On 1 October 2021, Kathryn Mitchell and Geoffrey Edward Summerhayes were appointed as Directors and have been re-elected
on 28 October 2021. Christopher Robert Mace retired as a Director on 28 October 2021.
There have been no other changes to the composition of the Board of Directors of the Group for the year ended 30 June 2022.
The Directors of HGH and their details at the time these financial statements were signed were:
Chairman – Board of Directors
Name: Geoffrey Thomas Ricketts CNZMQualifications: LLB (Hons), LLD (honoris causa), CFInstD
Type of Director: Independent Non-Executive DirectorOccupation: Company Director
External Directorships:
Janmac Capital Limited, Maisemore Enterprises Limited, MCF2 Message4U Limited, MCF3 Amplify Limited, MCF3 Green Limited,
MCF3 E&P Holdco Limited, MCF3 Re. Group Limited, MCF3 Architectus Limited, MCF 10 Limited, MCF2 (Fund 1) Limited, MCF 11
Limited, MCF2A General Partner Limited, MCF2 GP Limited, MCF3 GP Limited, MCF3B General Partner Limited, MCF3A General
Partner Limited, MCF2 FFF-GK Limited, MCF3 Cook Limited, MCF3 TEG Limited, MCF3 Resourceco Limited, MCF3 Squiz Limited,
MC Medical Properties Limited, Mercury Capital No.1 Fund Limited, Mercury Capital No. 1Trustee Limited, New Zealand Catholic
Education Office Limited, NZCEO Finance Limited, O & E Group Services Limited, Oceania and Eastern Finance Limited, Oceania
and Eastern Group Funds Limited, Oceania and Eastern Holdings Limited, Oceania and Eastern Limited, Oceania and Eastern
Securities Limited, Oceania North Limited, Oceania Securities Limited, Quartet Equities Limited.
Name: Ellen Frances ComerfordQualifications: BEc
Type of Director: Non-Independent Non-Executive DirectorOccupation: Company Director
External Directorships:
Airtasker Limited, Comerford Gohl Holdings Pty Limited, Hollard Holdings Australia Pty Limited, Lendi Group Pty Ltd, The Hollard
Insurance Company Pty Ltd.
Name: Gregory Raymond TomlinsonQualifications: AME
Type of Director: Non-Independent Non-Executive DirectorOccupation: Company Director
External Directorships:
Alta Cable Holdings Limited, Chippies Vineyard Limited, Indevin Group Limited, Little Ngakuta Trust Company Limited,
Mountbatten Trustee Limited, Nearco Stud Limited, Oceania Healthcare Limited, Pelorus Finance Limited, St Leonards Limited,
Tomlinson Group Argenta GP Limited, Tomlinson Group NZ Limited, Tomlinson Holdings Limited, Tomlinson Group Investments
Limited, Tomlinson Ventures Limited, Terra Vitae Vineyards Limited, Villa Maria Estate Limited.
Name: Jeffrey Kenneth GreensladeQualifications: LLB
Type of Director: Non-Independent Executive DirectorOccupation: Chief Executive Officer of Heartland Group Holdings
External Directorships:
Henley Family Investments Limited.
Name: Kathryn MitchellQualifications: BA, CMInstD
Type of Director: Independent Non-Executive DirectorOccupation: Company Director
External Directorships:
Chambers@151 Limited, Christchurch International Airport Limited, Farmright Limited, Firsttrax Limited, Helpings Hands Holdings
Limited, Link Engine Management Limited, Morrison Horgan Limited, The New Zealand Merino Company Limited.

P. 5
Directors (continued)
Name: Geoffrey Edward SummerhayesQualifications: BBA
Type of Director: Independent Non-Executive DirectorOccupation: Company Director
External Directorships:
Zurich Financial Services Australia Limited, Zurich Australian Insurance Limited, Zurich Investment Management Limited, Zurich
Australia Limited, OnePath Life Limited, OnePath General Insurance Pty Limited.

P. 6
Directors' Statements
The consolidated financial statements are dated 22 August 2022 and have been signed by all Directors.
G T Ricketts (Chair)E F Comerford
J K GreensladeG R Tomlinson
K MitchellG E Summerhayes

P. 7
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2022
$000'sNote
June 2022June 2021
Interest income
3
342,101327,935
Interest expense
3
91,95994,418
Net interest income250,142233,517
Operating lease income
4
5,2845,004
Operating lease expense
4
3,3833,149
Net operating lease income1,9011,855
Lending and credit fee income9,6398,090
Other income
5
18,9333,634
Net operating income280,615247,096
Operating expenses
6
116,753117,658
Profit before impaired asset expense and income tax163,862129,438
Fair value (loss)/gain on investments(12,998)4,092
Impaired asset expense
8
13,82314,974
Profit before income tax137,041118,556
Income tax expense
9
41,91631,530
Profit for the year95,12587,026
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss, net of income tax:
Effective portion of change in fair value of derivative financial instruments7,0418,940
Movement in fair value reserve(712)(5,646)
Movement in foreign currency translation reserve2,340(68)
Items that will not be reclassified to profit or loss, net of income tax:
Movement in defined benefit reserve(171)-
Other comprehensive income(473)-
Other comprehensive income for the year, net of income tax8,0253,226
Total comprehensive income for the year103,15090,252
Earnings per share
Basic earnings per share
1016.13c
14.92c
Diluted earnings per share
1016.13c
14.92c
Total comprehensive income for the year is attributable to the owners of the Group.
The notes to the financial statements form an integral part of, and should be read in conjunction with, these consolidated
financial statements.

P. 8
Consolidated Statement of Changes in Equity
For the year ended 30 June 2022
June 2022June 2021
$000's
Note
Share
CapitalReserves
Retained
Earnings
Total
Equity
Share
CapitalReserves
Retained
Earnings
Total
Equity
Balance at beginning of year583,781(477)178,388761,692576,257(5,500)129,223699,980
Total comprehensive income for
the year
Profit for the year--95,12595,125--87,02687,026
Other comprehensive income
/(loss), net of income tax
17-8,498(473)8,025-3,226-3,226
Total comprehensive income for
the year
-8,49894,652103,150-3,22687,02690,252
Contributions by and distributions
to owners
Dividends paid16--(73,454)(73,454)--(37,861)(37,861)
Dividend reinvestment plan1615,404--15,4047,524--7,524
Share based payments-1,915-1,915-1,797-1,797
Total transactions with owners15,4041,915(73,454)(56,135)7,5241,797(37,861)(28,540)
Balance at end of the year599,1859,936199,586808,707583,781(477)178,388761,692
The notes to the financial statements form an integral part of, and should be read in conjunction with, these consolidated financial
statements.

P. 9
Consolidated Statement of Financial Position
As at 30 June 2022
$000's
NoteJune 2022June 2021
Assets
Cash and cash equivalents310,758182,333
Investments11289,294377,823
Investment properties11,83211,832
Derivative financial instruments1245,22114,139
Finance receivables134,146,8213,288,466
Finance receivables - reverse mortgages131,996,8541,676,073
Operating lease vehicles1415,16110,865
Right of use assets1814,14515,985
Other assets1818,22916,815
Intangible assets18218,87469,165
Deferred tax asset923,07414,117
Total assets7,090,2635,677,613
Liabilities
Deposits153,592,5083,183,454
Other borrowings152,578,2131,675,133
Lease liabilities1816,24018,166
Tax liabilities22,0447,440
Derivative financial instruments126,3414,802
Trade and other payables1866,21026,926
Total liabilities6,281,5564,915,921
Equity
Share capital16599,185583,781
Retained earnings and other reserves209,522177,911
Total equity808,707761,692
Total equity and liabilities7,090,2635,677,613
Total interest earning and discount bearing assets6,667,2605,432,181
Total interest and discount bearing liabilities6,131,5934,840,310
The notes to the financial statements form an integral part of, and should be read in conjunction with, these consolidated
financial statements.

P. 10
Consolidated Statement of Cash Flows
For the year ended 30 June 2022
$000's
NoteJune 2022June 2021
Cash flows from operating activities
Interest received222,894233,447
Operating lease income received3,9135,046
Lending, credit fees and other income received6,1014,625
Operating inflows232,908243,118
Interest paid(100,467)(85,058)
Payments to suppliers and employees(69,463)(97,205)
Taxation paid(32,987)(34,004)
Operating outflows(202,917)(216,267)
Net cash flows from operating activities before changes in operating assets and liabilities29,99126,851
Proceeds from sale of operating lease vehicles4,4816,821
Purchase of operating lease vehicles(10,758)(1,788)
Net movement in finance receivables(693,512)(296,754)
Net movement in deposits407,484(74,608)
Net cash flows (applied to) operating activities
1
(262,314)(339,478)
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets(9,809)(7,562)
Net movement in investments75,53123,276
Purchase of subsidiary, net of cash acquired(159,919)-
Total cash (applied to)/from investing activities(94,197)15,714
Net cash flows (applied to)/from investing activities(94,197)15,714
Cash flows from financing activities
Net increase in wholesale funding468,139309,680
Proceeds from issue of unsubordinated notes77,24381,801
Total cash provided from financing activities545,382391,481
Dividends paid(58,050)(30,337)
Payment of lease liabilities(2,396)(2,226)
Total cash (applied to) financing activities(60,446)(32,563)
Net cash flows from financing activities484,936358,918
Net increase in cash held128,42535,154
Opening cash and cash equivalents182,333147,179
Closing cash and cash equivalents310,758182,333
1
Cash flows from operating activities do not include cash flows from wholesale funding which are included as part of financing
activities.
The notes to the financial statements form an integral part of, and should be read in conjunction with, these consolidated
financial statements.

P. 11
Consolidated Statement of Cash Flows
For the year ended 30 June 2022
Reconciliation of profit after tax to net cash flows from operating activities
$000's
NoteJune 2022June 2021
Profit for the year95,12587,026
Add/(less) non-cash items:
Depreciation and amortisation expense10,69114,615
Depreciation on lease vehicles143,1032,801
Capitalised net interest income and fee income(95,271)(68,755)
Impaired asset expense813,82314,974
Investment fair value movement12,998(4,092)
Other non-cash items(30,407)(24,538)
Total non-cash items (85,063)(64,995)
Add/(less) movements in operating assets and liabilities:
Finance receivables(693,512)(296,754)
Operating lease vehicles(6,277)5,033
Other assets(207)3,448
Current tax 14,604(4,863)
Derivative financial instruments(23,214)(163)
Deferred tax(8,957)3,006
Deposits407,484(74,608)
Other liabilities37,7033,392
Total movements in operating assets and liabilities(272,376)(361,509)
Net cash flows applied to operating activities
1
(262,314)(339,478)
1
Cash flows from operating activities do not include cash flows from wholesale funding which are included as part of financing
activities.
The notes to the financial statements form an integral part of, and should be read in conjunction with, these consolidated
financial statements.

P. 12
Notes to the Financial Statements
For the year ended 30 June 2022
1 Financial statements preparation
Reporting entity
The financial statements presented are the consolidated financial statements comprising Heartland Group Holdings (HGH) and its
subsidiaries (the Group). Refer to Note 26 – Significant subsidiaries for further details.
As at 30 June 2022, HGH is a company incorporated in New Zealand under the Companies Act 1993 and a Financial Market
Conduct (FMC) reporting entity for the purposes of the Financial Markets Conduct Act 2013.
Basis of preparation
The consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New
Zealand (NZ GAAP) the New Zealand Exchange (NZX) Main Board Listing Rules and the Australian Securities Exchange (ASX) Listing
Rules. The financial statements comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and
other applicable Financial Reporting Standards as appropriate for profit-oriented entities. The financial statements also comply
with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
The consolidated financial statements are presented in New Zealand dollars which is the Group's functional and presentation
currency. Unless otherwise indicated, amounts are rounded to the nearest thousand dollars.
The consolidated financial statements have been prepared on a going concern basis after considering the Group's funding and
liquidity position.
The accounting policies adopted have been applied consistently throughout the periods presented in these consolidated financial
statements.
Certain comparative balances have been reclassified to align with the presentation used in the current financial year. These
reclassifications have no impact on the overall financial performance or financial position for the comparative year.
Basis of measurement
The financial statements have been prepared on the basis of historical cost, except for certain financial instruments and
investment properties, which are measured at their fair values as identified in the accounting policies set out in the accompanying
notes to the financial statements.
Principles of consolidation
The consolidated financial statements of the Group incorporate the assets, liabilities and results of all controlled entities.
Controlled entities are all entities in which the Group is exposed to, or has rights to, variable returns from its involvement with the
entities and has the ability to affect those returns through its power over the entities. Intercompany transactions, balances and
any unrealised income and expense (except for foreign currency transaction gains or losses) between controlled entities are
eliminated.
Assets and liabilities in a transactional currency that is not the New Zealand dollar, are translated at the exchange rates ruling at
balance date. Revenue and expense items are translated at the average rate at the balance date. Exchange differences are taken
to the consolidated statement of comprehensive income.

P. 13
1 Financial statements preparation (continued)
Changes in accounting standards
Accounting standards issued and effective
There have been no changes to accounting policies or new or amended standards that are issued and effective that are expected
to have a material impact on the Group.
Accounting standards issued not yet effective
The final version of NZ IFRS 17 Insurance Contracts was issued in August 2017 and is applicable to general and life insurance
contracts. The standard will be effective for the Group’s reporting for the financial year ending 30 June 2024, including 30
June 2023 comparatives.
Marac Insurance Limited (MIL), a subsidiary of Heartland Bank Limited (HBL), ceased writing insurance policies in 2020 with the
periodic policies expected to expire in 2025.
Other amendments to existing standards that are not yet effective are not expected to have a material impact on the Group.
Estimates and judgements
The preparation of the Group’s consolidated financial statements requires the use of estimates and judgements. This note
provides an overview of the areas that involve a higher degree of judgement or complexity. Detailed information about each of
these estimates and judgements is included in the relevant notes together with the basis of calculation for each affected item in
the financial statements.
Provisions for impairment - The effect of credit risk is quantified based on the Group's best estimate of future cash
repayments and proceeds from any security held or by reference to risk profile groupings, historical loss data and forward-
looking information. Refer to Note 8 - Impaired asset expense, and Note 13 - Finance receivables for further details.
Investment in equity securities - Judgements have been applied in techniques to determine the fair value of Harmoney
equity securities to reflect the underlying characteristics. Refer to Note 21 - Fair value for further details.
Fair value of reverse mortgages - Fair value is quantified by the transaction price and the Group’s subsequent best estimate
of the risk profile of the reverse mortgage portfolio. Refer to Note 21 - Fair value for further details.
Goodwill - Determining the fair value of assets and liabilities of acquired businesses requires the Group to exercise
judgement. The carrying value of goodwill is tested annually for impairment, refer to Note 18 - Other balance sheet items.
Assumptions made at each reporting date (e.g. the calculation of the provision for impairment and fair value adjustments) are
based on best estimates as at that date. Although the Group has internal controls in place to ensure that estimates can be reliably
measured, actual amounts may differ from these estimates. The estimates and judgements used in the preparation of the Group’s
financial statements are continually evaluated. They are based on historical experience and other factors, including expectations
of future events that may have a financial impact on the entity. Revisions to accounting estimates are recognised in the reporting
period in which the estimates are revised and in any future periods affected.
COVID-19 Pandemic - Impact on Estimates and Judgements
The COVID-19 pandemic resulted in the Group adopting an economic overlay for expected credit losses (ECL) to its portfolios as at
30 June 2020 of pre-tax $9.6 million in response to the uncertain but potential economic impact of COVID-19 on HGH's borrowers
(COVID Overlay). The COVID Overlay was sized based on a range of techniques including stress testing, benchmarking, scenario
analysis and expert judgement.
Whilst economic uncertainty remains, credit risk factors arising from the impact of COVID-19 are now apparent. Consequently the
COVID Overlay has been released in full and it has been considered appropriate to create an economic overlay of $8.0 million as
at 30 June 2022, resulting in a net $1.6 million release to profit or loss.
The accounting judgement that is most impacted by the economic overlay is the ECL on finance receivables at amortised cost. The
Group measures the allowance for ECL using an impairment model in compliance with NZ IFRS 9 Financial Instruments.

P. 14
1 Financial statements preparation (continued)
Financial assets and liabilities
Financial Assets
Financial assets are classified based on:
The business model within which the assets are managed; and
Whether the contractual cash flows of the instrument represent solely payment of principal and interest (SPPI).
The Group determines the business model at the level that reflects how groups of financial assets are managed. When assessing
the business model, the Group considers factors including how performance and risks are managed, evaluated and reported and
the frequency and volume of, and reason for sales in previous periods.
Financial assets are classified into the following measurement categories:
Financial Assets Measurement Category Note
Bank bonds and floating rate notesFair value through other comprehensive income (FVOCI)11
Public sector securities and corporate bondsFVOCI11
Equity investmentsFair value through profit or loss (FVTPL) and FVOCI11
Finance receivables – Reverse mortgagesFVTPL13
Finance receivablesAmortised cost13
Financial assets measured at amortised cost
Financial assets are measured at amortised cost if they are held within a business model whose objective is achieved through
holding the financial asset to collect contractual cash flows which represent SPPI.
Financial assets at amortised cost are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest rate method.
Financial assets measured at FVOCI
Financial assets are measured at FVOCI if they are held within a business model whose objective is achieved both through
collecting contractual cash flows which represent SPPI or selling the financial asset.
Financial assets at FVOCI are measured at fair value with unrealised gains and losses recognised in other comprehensive income
except for interest income, impairment charges and foreign exchange gains and losses, which are recognised in profit or loss.

P. 15
1 Financial statements preparation (continued)
Financial assets and liabilities (continued)
Financial Assets (continued)
Financial assets measured at FVTPL
Financial assets are measured at FVTPL if:
they are held within a business model whose objective is achieved through selling or repurchasing the financial asset in the
near term, or forms part of a portfolio of financial instruments that are managed together and for which there is evidence of
short-term profit taking; or
they are designated at FVTPL upon initial recognition to eliminate or reduce an accounting mismatch.
Financial assets at FVTPL are measured at fair value with subsequent changes in fair value recognised in profit or loss.
Financial Liabilities
Financial liabilities are classified into the following measurement categories:
those to be measured at amortised cost;
those to be measured at FVTPL.
Financial liabilities measured at amortised cost
Financial liabilities are measured at amortised cost if they are not held for trading or designated at FVTPL.
Financial liabilities measured at amortised cost are accounted for using the effective interest rate method.
Financial liabilities measured at FVTPL
Financial liabilities are measured at FVTPL if:
they are held for trading whose principal objective is achieved through selling or repurchasing the financial liability in the
near term, or forms part of a portfolio of financial instruments that are managed together and for which there is evidence of
short-term profit taking; or
they are designated at FVTPL upon initial recognition to eliminate or reduce an accounting mismatch.
Financial liabilities at FVTPL are measured at fair value with subsequent changes in fair value recognised in profit or loss.
Further details of the accounting policy for each category of financial asset or financial liability mentioned above is set out in the
note for the relevant item.
The Group’s policies for determining the fair value of financial assets and financial liabilities are set out in Note 21 - Fair value.
Recognition
The Group initially recognises finance receivables and borrowings on the date that they are originated. All other financial assets
and liabilities (including assets and liabilities designated at FVTPL) are initially recognised on the trade date at which the Group
becomes a party to the contractual provisions of the instrument.

P. 16
1 Financial statements preparation (continued)
Derecognition
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the
rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of
ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the
Group is recognised as a separate asset.
The Group enters into transactions whereby it transfers assets recognised on its consolidated statement of financial position, but
retains either all risks or rewards of the transferred assets or a portion of them. If all or substantially all risks and rewards are
retained, then the transferred assets are not derecognised from the consolidated statement of financial position. Transfers of
assets with the retention of all or substantially all risks and rewards include, for example, securitised assets and repurchase
transactions.
Financial liabilities are derecognised when the obligation is discharged, cancelled or expires. Where an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially
modified, the exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability,
with the difference in the respective carrying amounts recognised in profit or loss.
Offsetting financial instruments
The Group offsets financial assets and financial liabilities and reports the net balance in the balance sheet where there is currently
a legally enforceable right to set off and there is an intention to settle on a net basis or to realise the asset and settle the liability
simultaneously.

P. 17
Performance
2 Segmental analysis
Segment information is presented in respect of the Group's operating segments which are those used for the Group's
management and internal reporting structure.
Operating segments
The Group operates within New Zealand and Australia and comprises the following main operating segments:
MotorMotor vehicle finance.
Reverse mortgagesReverse mortgage lending in New Zealand. Refer to Note 23 - Credit Risk Exposure for details of this
product.
Personal lendingTransactional, home loans and personal loans to individuals.
BusinessTerm debt, plant and equipment finance, commercial mortgage lending and working capital solutions for
small-to-medium sized businesses.
RuralSpecialist financial services to the farming sector, primarily offering livestock finance, rural mortgage
lending, seasonal and working capital financing, as well as leasing solutions to farmers.
StockCo AustraliaSpecialising in livestock finance within Australia. This segment was acquired through the acquisition of
StockCo Holdings 2 Pty Ltd and StockCo Australia Management Pty Ltd on 31 May 2022. As at 30 June
2022, one month of Profit and loss is recognised in this segment. Refer to Note 19 - Acquisition for
details.
AustraliaReverse mortgage lending and other financial services within Australia.
Certain operating expenses, such as premises, IT and support centre costs are not allocated to operating segments and are
included in Other. Finance receivables are allocated across the operating segments. Other assets and liabilities are managed
centrally and therefore are not allocated across the operating segments.
The Group's operating segments are different from the industry categories detailed in Note 23 - Credit risk exposure. The
operating segments are primarily categorised by sales channel, whereas Note 23 - Credit risk exposure categorises exposures
based on credit risk concentrations.

P. 18
2 Segmental analysis (continued)
ReversePersonalStockCo
$000's
MotorMortgagesLendingBusinessRuralAustraliaAustraliaOtherTotal
June 2022
Net interest income
69,73029,95710,28770,60229,4601,88938,662(445)250,142
Net other income
3,3262,5831,5622,67974132,69016,88930,473
Net operating income73,05632,54011,84973,28130,2011,89241,35216,444280,615
Operating expenses3,7924,4856,4199,3583,0381,69211,28676,683116,753
Profit/(loss) before
impaired asset expense
and income tax
69,26428,0555,43063,92327,16320030,066(60,239)163,862
Fair value (loss) on
investments
-------(12,998)(12,998)
Impaired asset
expense/(benefit)
1,481-(877)11,8312,256(291)(577)-13,823
Profit before income tax67,78328,0556,30752,09224,90749130,643(73,237)137,041
Income tax expense-------41,91641,916
Profit/(loss) for the year67,78328,0556,30752,09224,90749130,643(115,153)95,125
Total assets1,382,367721,264332,7831,387,352687,232372,1721,288,494918,5997,090,263
Total liabilities6,281,556

P. 19
2 Segmental analysis (continued)
ReversePersonalStockCo
$000's
MotorMortgagesLendingBusinessRuralAustraliaAustraliaOtherTotal
June 2021
Net interest income65,82922,25712,07363,89830,579-39,348(467)233,517
Net other income3,3432,1431,9462,723881-2,684(141)13,579
Net operating income69,17224,40014,01966,62131,46042,032(608)247,096
Operating expenses3,7874,2846,83311,3402,124-12,39076,900117,658
Profit/(loss) before
impaired asset expense
and income tax
65,38520,1167,18655,28129,336-29,642(77,508)129,438
Fair value gain on
investments
----700--3,3924,092
Impaired asset expense5,298-2,0815,6491,649-297-14,974
Profit/(loss) before
income tax
60,08720,1165,10549,63228,387-29,345(74,116)118,556
Income tax expense-------31,53031,530
Profit/(loss) for the year60,08720,1165,10549,63228,387-29,345(105,646)87,026
Total assets1,287,978601,505137,9101,225,710586,318-1,149,610688,5825,677,613
Total liabilities4,915,921
3 Net interest income
Policy
Interest income and expense on financial instruments is measured using the effective interest rate method that discounts the
financial instruments' future cash flows to their present value and allocates the interest income or expense over the life of the
financial instrument. The effective interest rate is established on initial recognition of the financial assets or liabilities and is not
subsequently revised. For financial instruments at amortised cost, the calculation of the effective interest rate includes all yield
related fees and commissions paid or received that are an integral part of the underlying financial instrument.
$000's
June 2022June 2021
Interest income
Cash and cash equivalents
811119
Investments
5,1566,979
Finance receivables
236,916232,845
Finance receivables - reverse mortgages
99,21887,992
Total interest income342,101327,935
Interest expense
Deposits
45,71755,273
Other borrowings
46,11035,609
Net interest expense on derivative financial instruments
1323,536
Total interest expense91,95994,418
Net interest income 250,142233,517

P. 20
4 Net operating lease income
Policy
As a lessor, the Group retains substantially all the risks and rewards incidental to ownership of the assets and therefore
classifies the leases as operating leases. Rental income and expense from operating leases is recognised on a straight-line basis
over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised on a straight-line basis over the lease term. Profits on the sale of operating
lease assets are included as part of operating lease income. Current year depreciation and losses on the sale of operating lease
assets are included as part of operating lease expenses. The leased assets are depreciated over their useful lives on a basis
consistent with similar assets.
$000's
June 2022June 2021
Operating lease income
Lease income
4,1613,908
Gain on disposal of lease assets
1,1231,096
Total operating lease income5,2845,004
Operating lease expense
Depreciation on lease assets
3,1032,801
Direct lease costs
280348
Total operating lease expense3,3833,149
Net operating lease income1,9011,855
5 Other income
Policy
Rental income from investment properties
Rental income from investment properties is recognised on a straight-line basis over the term of the relevant lease.
Insurance income
Insurance premium income and commission expense are recognised in profit or loss from the date of attachment of the risk over
the period of the insurance contract. Claim expense is recognised in the profit or loss on an accrual basis once our liability to the
policyholder has been confirmed under the terms of the contract.
$000's
June 2022June 2021
Rental income from investment properties8331,055
Insurance income
6641,096
Gain on sale of investments
-157
Other income
7031,117
Fair value gain on derivative financial instruments
16,723-
FX gain
10209
Total other income18,9333,634

P. 21
6 Operating expenses
Policy
Operating expenses are recognised as the underlying service is rendered or over a period in which an asset is consumed or a
liability is incurred.
$000's
June 2022June 2021
Personnel expenses61,15261,476
Directors' fees
1,1491,129
Superannuation
1,5301,535
Depreciation - property, plant and equipment
2,4592,995
Legal and professional fees
3,1122,876
Advertising and public relations
4,5105,138
Depreciation - right of use asset
2,3102,312
Technology services
9,3747,262
Telecommunications, stationary and postage
1,7231,843
Customer acquisition costs
5,9746,982
Amortisation of intangible assets
5,9229,308
Other operating expenses
1
17,53814,802
Total operating expenses116,753117,658
1
Other operating expenses include compensation of auditor which is disclosed in Note 7.
7 Compensation of auditor
$000's
June 2022June 2021
Audit and review of the financial statements
1
879790
Other assurance services paid to auditor
2
103103
Total compensation of auditor982893
1
Audit and review of the financial statements includes fees paid for both the audit of the annual financial statements and review
of interim financial statements.
2
Other assurance related services paid to the auditor comprise regulatory assurance services, trust deed reporting, registry audits
and other agreed upon procedure engagements.

P. 22
8 Impaired asset expense
Policy
Impairment of finance receivables
At each reporting date, the Group applies a three stage approach to measuring ECL to finance receivables not carried at fair value.
The ECL model assesses whether there has been a significant increase in credit risk since initial recognition.
The ECL model is a forward looking model where impairment allowances are recognised before losses are actually incurred. On
initial recognition, an impairment allowance is required, based on events that are possible in the next 12 months.
Assets may migrate between the following stages based on their change in credit quality:
Stage 1 - 12 months ECL (past due 30 days or less)
Where there has been no evidence of increased credit risk since initial recognition, and finance receivables are not credit impaired
upon origination, the portion of the lifetime ECL associated with the probability of default events occurring within the next 12
months is recognised.
Stage 2 - Lifetime ECL not credit impaired (greater than 30 but less than 90 days past due)
Where there has been a significant increase in credit risk.
Stage 3 - Lifetime ECL credit impaired (90 days past due or more)
Objective evidence of impairment, so are considered to be in default or otherwise credit impaired.
In determining whether credit risk has increased all available information relevant to the assessment of economic conditions at
the reporting date are taken into consideration. To do this the Group considers its historical loss experience and adjusts this for
current observable data. In addition to this the Group uses reasonable and supportable forecasts of future economic conditions
including experienced judgement to estimate the amount of an expected impairment loss. Future economic conditions consider
macroeconomic factors such as unemployment, interest rate, gross domestic product, and inflation, and requires an evaluation of
both the current and forecast direction of the economic cycle. The methodology and assumptions including any forecasts of
future economic conditions are reviewed regularly as incorporating forward-looking information increases the level of judgement
as to how changes in these macroeconomic factors will affect the ECL.
The calculation of expected credit loss is modelled for portfolios of like assets. For portfolios which are either new or too small to
model, judgement is used to determine impairment provisions.
For assets that are individually assessed for ECL, the allowance for ECL is calculated directly as the difference between the
defaulted assets carrying value and the recoverable amount (being the present value of expected future cash flows, including cash
flows from the realisation of collateral or guarantees, where applicable).

P. 23
8 Impaired asset expense (continued)
$000's
June 2022June 2021
Non-securitised
Individually impaired asset expense
10,7839,131
Collectively impaired asset expense
3,1106,001
Total non-securitised impaired asset expense13,89315,132
Securitised
Collectively impaired asset expense
(70)(158)
Total securitised impaired asset expense(70)(158)
Total
Individually impaired asset expense
10,7839,131
Collectively impaired asset expense
3,0405,843
Total impaired asset expense13,82314,974
The Group’s models for estimating ECL for each of its portfolios are based on the historic credit experience of those portfolios.
The models assume that economic conditions (such as GDP growth, unemployment rates, and house price index forecasts) remain
static over time. If the Group forecasts that economic conditions may change in the foreseeable future, the Group applies
judgement to determine whether the modelled output should be subject to an economic overlay. Judgement is required to
establish clear correlation between key economic indicators and the credit performance of the Group’s unique portfolios.
9 Taxation
Policy
Income tax
Income tax expense for the year comprises current tax and movements in deferred tax balances, including any adjustment
required for prior years' tax expense. Income tax expense is recognised in profit and loss except to the extent that it relates to
items recognised directly in other comprehensive income, in which case it is recognised in equity or other comprehensive income.
Current tax
Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to the tax payable or receivable in respect of previous years. Current tax for
current and prior years is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying
amounts of assets and liabilities for accounting purposes and the amounts used for taxation purposes. As required by NZ IAS 12
Income Taxes, a deferred tax asset is recognised only to the extent that it is probable that a future taxable profit will be available
to realise the asset.
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of GST. As the Group is predominantly involved in providing financial services,
only a proportion of GST paid on inputs is recoverable. The non-recoverable proportion of GST is treated as an expense or, if
relevant, as part of the cost of acquisition of an asset.

P. 24
9 Taxation (continued)
Income tax expense
$000's
June 2022June 2021
Income tax recognised in profit or loss
Current tax
Current year
46,23930,584
Adjustments for prior year
(760)(1,854)
Tax other rates
486426
Deferred tax
Current year
(3,750)1,283
Adjustments for prior year
(282)1,145
Tax other rates
(17)(54)
Total income tax expense recognised in profit or loss41,91631,530
Income tax recognised in other comprehensive income
Current tax
Derivatives at fair value reserve
(5,271)(2,197)
Fair value movements of cash flow hedge
7,7433,457
Total income tax expense recognised in other comprehensive income2,4721,260
Reconciliation of effective tax rate
Profit before income tax137,041118,556
Tax at New Zealand income tax rate of 28%
38,37233,196
Higher tax rate for overseas jurisdiction
469372
Adjusted tax effect of items not taxable/deductible
4,117(1,330)
Adjustments for prior year
(1,042)(708)
Total income tax expense41,91631,530
Deferred tax assets comprise the following temporary differences:
$000's
June 2022June 2021
Employee expenses2,1691,647
Share Based payment
1,039503
Provision for impairment
14,64915,097
Intangibles and property plant and equipment
(2,968)(3,816)
Deferred acquisition costs
(196)(475)
Operating lease vehicles
680479
Deferred income
(4,786)-
Prior year tax loss
9,362-
Deductible prior year expense
603-
Other temporary differences
2,522682
Total deferred tax assets23,07414,117
Opening balance of deferred tax assets14,11717,123
Movement recognised in profit or loss
4,084(3,006)
Transfer on acquisition of business
4,873-
Closing balance of deferred tax assets23,07414,117
Imputation credit account
$000's
June 2022June 2021
Imputation credit account19,11419,990

P. 25
10 Earnings Per Share
June 2022June 2021
Earnings Per
Share
Net Profit
After Tax
Weighted
Average No.
of Shares
Earnings Per
Share
Net Profit
After Tax
Weighted
Average No.
of Shares
Cents$000's000'sCents$000's000's
Basic earnings16.1395,125589,77114.9287,026583,467
Diluted earnings
16.1395,125589,77114.9287,026583,467

P. 26
Financial Position
11 Investments
Policy
Investments are classified into one of the following categories:
Fair value through profit or loss
Investments under this category include equity investments and are measured at fair value plus transaction costs. Changes in fair
value of these investments are recognised in profit or loss in the period in which they occur.
Fair value through other comprehensive income
Investments under this category include bank bonds, floating rate notes, local authority stock, public securities, corporate bonds
and equity investments. These are initially measured at fair value, including transaction costs, and subsequently carried at fair
value. Changes in fair value of these investments are recognised in other comprehensive income and presented within the fair
value reserve.
Amortised cost
Investments under this category include bank deposits and are measured using effective interest rate method. They are held to
collect contractual cash flows that are solely payments of principal and interest on the principal amount outstanding.
$000's
June 2022June 2021
Bank deposits, bank bonds and floating rate notes261,259351,613
Public sector securities and corporate bonds
12,9535,543
Equity investments
15,08220,667
Total investments289,294377,823
Refer to Note 21 - Fair value for details of the split between investments measured at fair value through profit or loss, fair value
through other comprehensive income and amortised cost.

P. 27
12 Derivative financial instruments
Policy
The Group uses derivatives for risk management purposes. Derivatives held for risk management purposes include hedges that
either meet the hedge accounting requirements set out in NZ IAS 39, or economic hedges not placed into an accounting hedge
relationship.
Derivatives are recognised at their fair value, with the derivatives being carried as assets when their fair value is positive and as
liabilities when their fair value is negative.
A hedged item is an asset, liability, firm commitment or highly probable forecast transaction that exposes the Group to risk of
changes in fair value or cash flows, and that is designated as being hedged. The Group applies fair value hedge
accounting to hedge movements in the value of fixed interest rate assets and liabilities subject to interest rate risk. The Group
applies cash flow hedge accounting to hedge the variability in highly probable forecast future cash flows attributable to
interest rate risk on variable rate assets and liabilities.
Fair value hedge accounting
The criteria that must be met for a relationship to qualify for hedge accounting include:
the hedging relationship must be formally designated and documented at inception of the hedge,
effectiveness testing must be carried out on an on-going basis to ensure the hedge is effective and consistent with the
originally documented risk management strategy, and
the instruments or counterparty must be a third party external to the Group.
The Group documents, at the inception of the transaction, the relationship between hedged items and hedging
instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group
also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in
hedging transactions are highly effective in offsetting changes in fair value of hedged items.
Subsequent to initial designation, changes in the fair value of derivatives that are designated and qualify for fair value hedge
accounting are recorded through profit or loss alongside any changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk.
Where the hedged item is carried at amortised cost, the movement in fair value of the hedged item attributable to the hedged
risk is made as an adjustment to the carrying value of the hedged asset or liability. When a hedging instrument expires or is sold,
or when a hedge no longer meets the criteria for hedge accounting, the adjustment to carrying amount of a hedged item carried
at amortised cost is amortised to the consolidated statement of comprehensive income on an effective yield basis over the
remaining period to maturity of the hedged item. Where a hedged item carried at amortised cost is derecognised from the
balance sheet, the adjustment to the carrying amount of the asset or liability is immediately transferred to the consolidated
statement of comprehensive income.
Cash flow hedge accounting
The criteria that must be met for a relationship to qualify for hedge accounting include:
the hedging relationship must be formally designated and documented at inception of the hedge,
effectiveness testing must be carried out on an on-going basis to ensure the hedge is effective and consistent with the
originally documented risk management strategy, and
the instruments or counterparty must be a third party external to the Group.

P. 28
12 Derivative financial instruments (continued)
Cash flow hedge accounting (continued)
The Group documents, at the inception of the transaction, the relationship between hedged items and hedging instruments, as
well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its
assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions
are highly effective in offsetting changes in cash flows of hedged items.
A fair value gain or loss associated with the effective portion of a derivative designated as a cash flow hedge is recognised initially
in the hedging reserve. The ineffective portion of a fair value gain or loss is recognised immediately in the consolidated statement
of comprehensive income.
When a hedging derivative expires or is sold, the hedge no longer meets the criteria for hedge accounting, or the Group elects to
revoke the hedge designation, the cumulative gain or loss on the hedging derivative remains in the cash flow hedging reserve until
the forecast transaction occurs and affects income, at which point it is transferred to the corresponding income or expense line. If
a forecast transaction is no longer expected to occur, the cumulative gain or loss on the hedging derivative previously reported in
the cash flow hedging reserve is immediately transferred to the consolidated statement of comprehensive income.
June 2022June 2021
NotionalFair ValueFair ValueNotional
Fair Value
Fair Value
$000's
PrincipalAssetsLiabilitiesPrincipalAssetsLiabilities
Held for risk management
Interest rate related contracts
Swaps 1,495,84145,2216,3411,121,17914,1224,533
Foreign currency related contracts
Forwards786--69,52517269
Total derivative financial instruments1,496,62745,2216,3411,190,70414,1394,802
The Group has entered into credit support annexes (CSAs) which form a part of International Swaps and Derivatives
Association (ISDA) Master Agreement, in respect of certain exposures relating to derivative transactions. As per these CSAs, the
Group or the counterparty needs to collateralise the market value of outstanding derivative transactions. As at 30 June 2022, the
Group has received $32.34 million of cash collateral (2021: $4.09 million) against derivative assets. The cash collateral received is
not netted off against the balance of derivative assets disclosed in the consolidated statement of financial position.
The Group actively manages interest rate risk by entering into derivative contracts to hedge against movements in interest rates.
During the year interest rate swaps entered into by the Group could not be designated into a hedging relationship with the
portfolio of financial assets and liabilities held considering their underlying risks could no longer be critically matched against
those of the interest rate swaps. Consequently, hedge accounting could not be established resulting in the recognition of fair
value gains from the interest rate swaps in the consolidated statement of comprehensive income.

P. 29
13 Finance receivables
(a) Finance receivables held at amortised cost
Policy
Finance receivables are initially recognised at fair value plus incremental direct transaction costs and are subsequently
measured at amortised cost using the effective interest method, less any impairment loss.
Fees and direct costs relating to loan origination, financing and loan commitments are deferred and amortised to interest
income over the life of the loan using the effective interest rate method. Lending fees not directly related to the origination of a
loan are recognised over the period of service.
Past due but not impaired assets are any assets which have not been operated by the counterparty within their key terms but
are not considered to be impaired by the Group.
Individually impaired assets are those loans for which the Group has evidence that it will incur a loss, and will be unable to
collect all principal and interest due according to the contractual terms of the loan.
In determining whether credit risk has increased all available information relevant to the assessment including information
about past events, current conditions and reasonable and supportable forecasts of economic conditions at the reporting date
are taken into consideration.
The calculation of expected credit loss is modelled for portfolios of like assets. For portfolios which are either new or too small
to model, judgement is used to determine impairment provisions.
$000's
June 2022June 2021
Non-securitised
Neither at least 90 days past due nor impaired
3,404,4513,140,489
At least 90 days past due
41,76836,882
Individually impaired
66,18338,143
Gross finance receivables3,512,4023,215,515
Less provision for impairment
(50,629)(53,448)
Total non-securitised finance receivables3,461,7733,162,067
Securitised
Neither at least 90 days past due nor impaired
686,236126,638
Individually impaired
188-
Gross finance receivables686,424126,638
Less provision for impairment
(1,376)(239)
Total securitised finance receivables685,048126,399
Total
Neither at least 90 days past due nor impaired
4,090,6873,267,128
At least 90 days past due
41,76836,882
Individually impaired
66,37138,143
Gross finance receivables4,198,8263,342,153
Less provision for impairment
(52,005)(53,687)
Total finance receivables4,146,8213,288,466

P. 30
13 Finance receivables (continued)
(a) Finance receivables held at amortised cost (continued)
Movement in provision
The following table details the movement from the opening balance to the closing balance of the provision for impairment
losses by class.
LifetimeLifetime
ECLECL
12 - MonthNot CreditCreditSpecific
$000'sECLImpairedImpairedProvisionTotal
June 2022
Non-securitised
Impairment allowance as at 30 June 202126,5912,40516,8237,62953,448
Changes in loss allowance
Transfer between stages(3,903)(2,447)1,0745,276-
New and increased provision (net of collective
provision releases)
(3,652)1,99813,3965,50717,249
Recovery of amounts written off--(3,356)-(3,356)
Credit impairment charge(7,555)(449)11,11410,78313,893
Recovery of amounts previously written off--3,356-3,356
Write offs--(16,692)(3,411)(20,103)
Effect of changes in foreign exchange rate323--35
Acquisition of portfolio-----
Impairment allowance as at 30 June 202219,0681,95914,60115,00150,629
Securitised
Impairment allowance as at 30 June 2021216221-239
Changes in loss allowance
Transfer between stages(6)(109)115--
New and increased provision (net of collective
provision releases)
(14)85(141)-(70)
Recovery of amounts written off-----
Credit impairment charge(20)(24)(26)-(70)
Recovery of amounts previously written off-----
Write offs--26-26
Effect of changes in foreign exchange rate-1--1
Acquisition of portfolio992--1881,180
Impairment allowance as at 30 June 20221,188(1)11881,376
Total
Impairment allowance as at 30 June 202126,8072,42716,8247,62953,687
Changes in loss allowance
Transfer between stages(3,909)(2,556)1,1895,276-
New and increased provision (net of collective
provision releases)
(3,666)2,08313,2555,50717,179
Recovery of amounts written off--(3,356)-(3,356)
Credit impairment charge(7,575)(473)11,08810,78313,823
Recovery of amounts previously written off--3,356-3,356
Write offs--(16,666)(3,411)(20,077)
Effect of changes in foreign exchange rate324--36
Acquisition of portfolio992--1881,180
Impairment allowance as at 30 June 202220,2561,95814,60215,18952,005

P. 31
13 Finance receivables (continued)
(a) Finance receivables held at amortised cost (continued)
Movement in provision (continued)
LifetimeLifetime
ECLECL
12 - MonthNot CreditCreditSpecific
$000'sECLImpairedImpairedProvisionTotal
June 2021
Non-securitised
Impairment allowance as at 30 June 202032,1602,14322,6685,30162,272
Changes in loss allowance
Transfer between stages(2,485)(1,090)(22)3,597-
New and increased provision (net of collective
provision releases)
(3,207)1,32913,7156,03417,871
Recovery of amounts written off--(2,739)-(2,739)
Credit impairment charge(5,692)23910,9549,63115,132
Recovery of amounts previously written off--2,739-2,739
Write offs--(19,729)(7,303)(27,032)
Effect of changes in foreign exchange rate(10)13-(6)
Acquisition of portfolio13322188-343
Impairment allowance as at 30 June 202126,5912,40516,8237,62953,448
Securitised
Impairment allowance as at 30 June 202026023114-397
Changes in loss allowance
Transfer between stages(4)(3)7--
New and increased provision (net of collective
provision releases)
(40)2(120)-(158)
Recovery of amounts written off----
-
Credit impairment charge(44)(1)(113)-(158)
Recovery of amounts previously written off-----
Write offs-----
Effect of changes in foreign exchange rate-----
Acquisition of portfolio-----
Impairment allowance as at 30 June 2021216221-239
Total
Impairment allowance as at 30 June 202032,4202,16622,7825,30162,669
Changes in loss allowance
Transfer between stages(2,489)(1,093)(15)3,597-
New and increased provision (net of collective
provision releases)
(3,247)1,33113,5956,03417,713
Recovery of amounts written off--(2,739)-(2,739)
Credit impairment charge(5,736)23810,8419,63114,974
Recovery of amounts previously written off--2,739-2,739
Write offs--(19,729)(7,303)(27,032)
Effect of changes in foreign exchange rate(10)13-(6)
Acquisition of portfolio13322188-343
Impairment allowance as at 30 June 202126,8072,42716,8247,62953,687

P. 32
13 Finance receivables (continued)
(a) Finance receivables held at amortised cost (continued)
Impact of changes in gross finance receivables held at amortised cost on allowance for ECL
LifetimeLifetime
ECLECL
12 - MonthNot CreditCreditSpecific
$000'sECLImpairedImpairedProvisionTotal
June 2022
Gross finance receivables as at 30 June 20213,092,653165,79345,56438,1433,342,153
Transfer between stages(112,179)25,53231,25355,394-
Additions2,433,553--3,1902,436,743
Deletions(1,446,110)(72,901)(12,782)(26,945)(1,558,738)
Write offs--(17,921)(3,411)(21,332)
Gross finance receivables as at 30 June 20223,967,917118,42446,11466,3714,198,826
June 2021
Gross finance receivables as at 30 June 20202,826,208183,26073,72924,6673,107,864
Transfer between stages(103,233)67,41913,31422,499-
Additions1,435,408--9551,436,363
Deletions(1,065,730)(84,886)(20,337)(466)(1,171,419)
Write offs--(21,142)(9,512)(30,654)
Gross finance receivables as at 30 June 20213,092,653165,79345,56438,1433,342,153
(b) Finance receivables held at fair value
Policy
Finance receivables – reverse mortgages are initially recognised, and subsequently measured, at fair value through profit or loss.
$000'sJune 2022June 2021
Finance receivables - reverse mortgages1,996,854 1,676,073
Total finance receivables - reverse mortgages1,996,854 1,676,073
Note 21 (a) - Financial instruments measured at fair value discloses further information regarding the Group’s valuation policy.
Note 23 - Credit risk exposure discloses further information regarding how reverse mortgages operate.
Credit risk adjustments on financial assets designated at fair value through profit or loss
There were no credit risk adjustments on individual financial assets.

P. 33
14 Operating lease vehicles
Policy
Operating lease vehicles are stated at cost less accumulated depreciation.
Operating lease vehicles are depreciated on a straight-line basis over their expected useful life after allowing for any residual
values. The estimated lives of these vehicles vary up to five years. Vehicles held for sale are not depreciated but are tested for
impairment.
$000'sJune 2022June 2021
Cost
Opening balance16,11424,098
Additions10,7581,788
Disposals(6,422)(9,772)
Closing balance20,45016,114
Accumulated depreciation
Opening balance5,2496,495
Depreciation charge for the year3,1032,801
Disposals(3,063)(4,047)
Closing balance5,2895,249
Opening net book value10,86517,603
Closing net book value15,16110,865
The future minimum lease payments receivable under operating leases not later than one year is $3.057 million (2021: $2.141
million), within one to five years is $6.465 million (2021: $1.406 million) and over five years is nil (2021: nil).
15 Borrowings
Policy
Borrowings and deposits are initially recognised at fair value including incremental direct transaction costs. They are subsequently
measured at amortised cost using the effective interest method.
$000'sJune 2022June 2021
Deposits3,592,5083,183,454
Total borrowings related to deposits3,592,5083,183,454
Unsubordinated notes636,407521,399
Securitised borrowings1,559,1081,043,516
Certificate of deposit198,71569,853
Bank borrowings173,982
-
Money market borrowings10,001
-
Repurchase agreement-40,365
Total other borrowings2,578,2131,675,133
Deposits and unsubordinated notes rank equally and are unsecured.

P. 34
15 Borrowings (continued)
The Group has the following unsubordinated notes on issue at balance sheet date. Australian (AU) borrowings are stated in their
functional currency AU dollars.
PrincipalValuationIssue DateMaturity DateFrequency of Interest
Repayment
$125 millionAmortised cost12 April 201912 April 2024Semi-annually
$150 millionAmortised cost21 September 201721 September 2022Semi-annually
AU $45 million Amortised cost8 March 202121 April 2023Quarterly
AU $45 millionAmortised cost9 July 20219 July 2024Quarterly
AU $47 millionAmortised cost15 March 20176 October 2022Monthly
AU $75 millionAmortised cost15 January 202121 April 2023Quarterly
AU $115 millionAmortised cost13 May 202213 May 2025Quarterly
At 30 June 2022 the Group had the following securitised borrowings outstanding:
Heartland Auto Receivables Warehouse Trust 2018-1 securitisation facility $400 million, drawn $268 million (2021: $300
million, drawn $108 million). Notes issued to investors are secured over the assets of the Heartland Auto Receivables
Warehouse Trust 2018-1 (predominantly motor loans). The facility has a maturity date of 26 August 2023.
Senior Warehouse Trust securitisation facility AU $600 million, drawn AU $585 million (2021: AU$600 million, drawn AU $556
million). Notes issued to investors are secured over the assets of Seniors Warehouse Trust (predominantly reverse mortgage
loans). The facility has a maturity date of 30 September 2025
Senior Warehouse Trust No. 2 securitisation facility AU $350 million, drawn AU $210 million (2021: AU$250 million, drawn
AU $182 million). Notes issued to investors are secured over the assets of Seniors Warehouse Trust No. 2 (predominantly
reverse mortgage loans). The facility has a maturity date of 1 July 2024.
Atlas 2020-1 Trust securitisation facility AU $127 million, drawn AU $127 million (2021: AU $137 million, drawn AU $137
million). Loans issued to investors are secured over the assets of Atlas 2020-1 Trust (predominantly reverse mortgage loans)
and has a maturity date of 24 September 2050.
StockCo Securitisation Trust 2022-1 securitisation facility AU $300 million, drawn AU $249 million (2021: nil). Loans issued to
investors are secured over the assets of StockCo Securitisation Trust 2022-1 (predominantly livestock loans). The facility has a
maturity date of 27 May 2024.

P. 35
16 Share capital and dividends
Policy
Ordinary shares are classified as equity, incremental costs directly attributable to the issue of ordinary shares and share options
are recognised as a deduction from equity, net of any tax effect.
June 2022June 2021
Number ofNumber of
000'sSharesShares
Issued shares
Opening balance585,904580,979
Shares issued - dividend reinvestment plan7,0004,925
Closing balance592,904585,904
The Group issued 3,930,116 new shares at $2.2713 per share on 15 September 2021 and 3,069,339 new shares at $2.1105 per
share on 16 March 2022 under the dividend reinvestment plan for the period (2021: 2,482,921 new shares issued at $1.8035 per
share on 16 March 2021 and 2,442,338 new shares at $1.2470 per share on 9 October 2020 under dividend reinvestment plan).
Dividends paid
June 2022June 2021
DateCentsDateCents
DeclaredPer Share$000'sDeclaredPer Share$000's
Final dividend24 August 20217.041,01317 Spetember 20202.514,524
Interim dividend22 February 20225.532,44122 February 20214.023,337
Total dividends paid73,45437,861
17 Other reserves
Foreign
Currency
EmployeeTranslationDefinedCash Flow
BenefitReserveFair ValueBenefitHedge
$000'sReserve(FCTR)ReserveReserveReserveTotal
June 2022
Balance as at 30 June 20212,731(3,975)(322)171918(477)
Other comprehensive income, net of income tax-2,340(712)(171)7,0418,498
Share based payments1,915----1,915
Balance as at 30 June 20224,646(1,635)(1,034)-7,9599,936
June 2021
Balance as at 30 June 2020934(3,907)5,324171(8,022)(5,500)
Other comprehensive income, net of income tax-(68)(5,646)-8,9403,226
Share based payments1,797----1,797
Balance as at 30 June 20212,731(3,975)(322)171918(477)

P. 36
18 Other balance sheet items
Policy
Property, plant and equipment are stated at cost less accumulated depreciation and impairment (if any). Depreciation is
calculated on a straight line basis to write off the net cost or revalued amount of each asset over its expected life to its estimated
residual value.
$000'sJune 2022June 2021
Other assets
Trade receivables-643
GST receivables2,9461,763
Prepayments7,6743,699
Property, plant and equipment7,3369,061
Other receivables2731,059
Collateral paid on derivatives-590
Total other assets18,22916,815
Policy
Intangible assets
Intangible assets with finite useful lives
Software acquired or internally developed by the Group is stated at cost less accumulated amortisation and any accumulated
impairment losses. Expenditure on software assets is capitalised only when it increases the future economic value of that asset.
Amortisation of software is on a straight line basis, at rates which will write off the cost over the assets’ estimated useful lives.
The expected useful life of the software has been determined to be ten years.
Goodwill
Goodwill arising on acquisition represents the excess of the cost of the acquisition over the Group’s interest in the fair value of
the identifiable net assets acquired. Goodwill that has an indefinite useful life is not subject to amortisation and is tested for
impairment annually. Goodwill is carried at cost less accumulated impairment losses.
$000'sJune 2022June 2021
Computer software
Cost61,91444,371
Accumulated depreciation26,27520,349
Net carrying value of computer software35,63924,022
Goodwill
Cost182,71845,143
Foreign exchange movement 517-
Net carrying value of goodwill183,23545,143
Total intangible assets218,87469,165
For the purposes of impairment testing, goodwill is allocated to cash generating units. A Cash Generating Unit (CGU) is the
smallest identifiable group of assets that generate independent cash inflows. Group has assessed that goodwill should be
allocated to the smallest identifiable CGU:
Heartland Australia Holdings Pty Limited: $15.3 million (2021: $15.3 million).
Heartland Bank Limited: $29.8 million (2021: $29.8 million).
StockCo AU Group: $138.1 million (2021: nil).
Goodwill is tested for impairment at a cash generating unit level. The recoverable amounts are determined on a value in use basis
using a five-year discounted cash flow methodology based on financial budget and forecasts. Key assumptions used in the models
included a discount rate of 10-14% and a terminal growth rate of 2% which reflect both past experience and external sources of
information. The recoverable amounts for each CGU are compared to the respective carrying value of net assets.

P. 37
18 Other balance sheet items (continued)
There was no indication of impairment and no impairment losses have been recognised against the carrying amount of goodwill
for the year ended 30 June 2022 (30 June 2021: nil).
Policy
Employee benefits
Annual leave entitlements are accrued at amounts expected to be paid. Long service leave is accrued by calculating the probable
future value of the entitlements and discounting back to present value. Obligations to defined contribution superannuation
schemes are recognised as an expense when the contribution is paid.
$000'sJune 2022June 2021
Trade and other payables
Trade payables21,35811,243
Insurance liability1,8383,353
Employee benefits9,5487,616
Other tax payables1,124623
Collateral received on derivatives32,3424,091
Total trade and other payables66,21026,926
Policy
Leases
The Group leases office space, car parks, equipment and cars. Rental contracts are typically made for fixed periods but may have
extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
In determining the lease term, all facts and circumstances that create an economic incentive to exercise an extension option are
considered. Extension options are only included in the lease term if the lease is reasonably certain to be extended.
Lease liabilities are measured at the present value of the remaining lease payments and discounted using the Group's incremental
borrowing rate (IBR). Lease liabilities are measured using the effective interest method. Carrying amounts are remeasured only
upon reassessments and lease modifications.
Right of use assets are depreciated at the shorter of lease term or the Group’s depreciation policy for that asset class.
$000'sJune 2022June 2021
Right of use assets
Balance at beginning of year15,98518,362
Depreciation charge for the year, included within depreciation expense in the income statement(2,310)(2,313)
Additions/(terminations) to right of use assets470(64)
Total right of use assets14,14515,985
Lease liability
Current3,6742,339
Non-current12,56615,827
Total lease liability16,24018,166
Interest expense relating to lease liability479568

P. 38
19 Acquisition
Policy
Business combination
The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets
the definition of a business and control is transferred to the Group. In determining whether a particular set of activities and assets
is a business, the Group assesses whether the set of assets and activities consists of inputs and processes applied to those inputs
that have the ability to contribute to the creation of outputs.
The consideration transferred in the acquisition and any contingent consideration to be transferred are generally measured at fair
value, as are the identifiable net assets acquired. Goodwill is initially measured at cost (being the excess of the aggregate of the
consideration transferred over the fair value of the net assets acquired) and is tested annually for impairment. Any gain on a
bargain purchase is recognised in profit or loss immediately. If the initial accounting for a business combination is incomplete by
the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which
the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see paragraph below), or
additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of
the acquisition date that, if known, would have affected the amounts recognised as of that date. The measurement period is the
period from the date of acquisition to the date the Group obtains complete information about facts and circumstances that
existed as of the acquisition date, and does not exceed twelve months. Transaction cost related to the acquisition is recognised as
an expense in profit or loss when incurred with the exception of costs to issue debt or equity securities.
On 31 May 2022, the Group acquired 100% of the shares in StockCo Holdings 2 Pty Ltd and StockCo Australia Management Pty Ltd
(collectively StockCo Australia). The Group is assessing the fair value of the identifiable assets and liabilities acquired, and
determining the related deferred tax effects, in line with the principles for estimating fair value adopted by the Group. Values
were provisionally allocated to identifiable assets and liabilities on completion date, based on information available. They may be
adjusted during the 12 months following that date on the basis of new information obtained relating to the facts and
circumstances prevailing at completion date.
Total consideration in relation to these transactions was AU $155.78 million (NZ $171.58 million), including non-cash
consideration of AU $0.28 million (NZ $0.31 million) and deferred consideration estimated to be AU $1.62 million (NZ $1.78
million) as at 30 June 2022. Provisional goodwill of AU $124.91 million (NZ $137.58 million) has been recognised from the
acquisitions.

P. 39
19 Acquisition (continued)
The fair values of the identifiable assets and liabilities of StockCo Australia as at the date of acquisition were:
$000's
Provisional fair value
recognised on acquisition
Assets
Cash and cash equivalents
9,564
Livestock receivables
374,384
Right of use assets
354
Deferred tax asset
5,285
Other assets
4,713
Total assets394,300
Liabilities
Other borrowings
358,942
Lease liabilities
354
Trade and other payables
1,001
Total liabilities360,297
Net assets acquired34,003
Provisional goodwill arising on acquisition137,575
Fair value of consideration171,578
Less:
Non - cash consideration transferred314
Deferred consideration
1,781
Total cash consideration transferred169,483
Cash flow on acquisition
Net cash acquired with the subsidiary
9,564
Net change in cash and cash equivalents159,919
Provisional goodwill represents the future economic benefits that the Group expects to derive from the acquisition of StockCo
Australia. It has been allocated to the StockCo Australia business segment.
Transaction costs of $1.1 million have been expensed and are included in the operating expenses in the consolidated statement of
comprehensive income.
From the date of acquisition, StockCo Australia contributed $3.3 million to Interest income and $1.7 million to Net profit before
tax of the Group. If the acquisition had taken place at the beginning of the year, it is estimated that the contribution to the
Group's interest income and net profit before tax would have been $37.6 million and $13.5 million respectively.

P. 40
20 Related party transactions and balances
Policy
A person or entity is a related party under the following circumstances:
a) A person or a close member of that person's family if that person:
i)has control or joint control over HGH;
ii) has significant influence over HGH; or
iii) is a member of the key management personnel of HGH.
b) An entity is related to HGH if any of the following conditions applies:
i)the entity and HGH are members of the same group;
ii)one entity is an associate or joint venture of the other entity;
iii) both entities are joint ventures of the same third party;
iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity;
v)the entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related
to HGH
vi) the entity is controlled, or jointly controlled by a person identified in (a); and
vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of
q the entity (or of a parent of the entity).
(a) Transactions with key management personnel
Key management personnel (KMP), are those who, directly or indirectly, have authority and responsibility for planning, directing
and controlling the activities of the Group. This includes all executive staff, Directors and their close family members.
KMP receive personal banking and financial investment services from the Group in the ordinary course of business. The terms and
conditions, for example interest rates and collateral, and the risks to the Group are comparable to transactions with other
employees and did not involve more than the normal risk of repayment or present other unfavourable features.
All other transactions with KMPs and their related entities are made on terms equivalent to those that prevail in arm's length
transactions.
$000'sJune 2022June 2021
Transactions with key management personnel
Interest income receivable2639
Interest expense payable(24)(22)
Key management personnel compensation
Short-term employee benefits(8,790)(9,384)
Share-based payment expense(1,915)(1,797)
Total transactions with key management personnel(10,703)(11,181)
Due from/(to) key management personnel
Lending229415
Borrowings - deposits(508)(23,409)
Total due (to) key management personnel(279)(22,994)

P. 41
20 Related party transactions and balances (continued)
(b) Transactions with related parties
HGH is the ultimate parent company of the Group.
Entities within the Group have regular transactions with each other on agreed terms. The transactions include the provision of tax
and administrative services and customer operations. Banking facilities are provided by HBL to other Group entities on normal
commercial terms as with other customers. There is no lending from subsidiaries within the Group to HGH.
Related party transactions between the Group eliminate on consolidation. Related party transactions outside of the Group are as
follows:
$000'sJune 2022June 2021
Southern Cross Building Society Staff Superannuation Scheme (SCBS)
Interest expense payable to SCBS
612
Management fees receivable from SCBS
1010
Cash recieved from SCBS
350-
ASF Custodians Pty Limited
Audit fees
77
Heartland Trust (HT)
Dividends paid
809421
HT held 6,475,976 shares in HGH (2021: 6,475,976 shares).
The Trustees of HT and certain employees of the Group provided their time and skills to the oversight and operation of HT at no
charge.
(c) Other balances with related parties
$000'sJune 2022June 2021
Southern Cross Building Society Staff Superannuation Scheme
Retail deposits owing to SCBS
1
351,760
1

During the year, the beneficiaries of SCBS accepted a settlement offer and were paid a final lump sum totalling $1.3 million. This
was supported by an actuarial valuation and approved by the Financial Markets Authority (FMA). The residual balance was
transferred to HBL as the employer, leaving the above balance to cover remaining costs.
The Group has indemnified HBL against a non performing loan which had a balance of $4.3 million as at 30 June 2022 (2021: nil).

P. 42
21 Fair value
Policy
Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
On initial recognition, the transaction price generally represents the fair value of the financial instrument, unless there is
observable information from an active market that provides a more appropriate fair value.
The fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices or
dealer price quotations. For all other financial instruments, the Group determines fair value using other valuation techniques.
The Group measures fair values using the following fair value hierarchy, which reflects the observability of the inputs used in
measuring fair value:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that
is, as prices) or indirectly (derived from prices).
Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Group recognises transfers between levels of the fair value hierarchy as at the end of the reporting period during which the
change has occurred.
(a) Financial instruments measured at fair value
The following methods and assumptions were used to estimate the fair value of each class of financial asset and liability measured
at fair value on a recurring basis in the consolidated statement of financial position.
The Group has an established framework in performing valuations required for financial reporting purposes including Level 3 fair
values. The Group regularly reviews and calibrates significant unobservable inputs and valuation adjustments in accordance with
market participants’ views. If external valuation specialists are engaged to measure fair values, the Group assesses the evidence
obtained from these specialists to support the conclusion of these valuations. All significant valuations are reported to the
Group's Board Audit and Risk Committee for approval prior to its adoption in the financial statements.
Investments
Investments in public sector securities and corporate bonds are stated at fair value through other comprehensive income (FVOCI),
with the fair value being based on quoted market prices (Level 1 under the fair value hierarchy) or modelled using observable
market inputs (Level 2 under the fair value hierarchy).
Investments valued under Level 2 of the fair value hierarchy are valued either based on quoted market prices or dealer quotes for
similar instruments, or discounted cash flows analysis.

P. 43
21 Fair value (continued)
(a) Financial instruments measured at fair value (continued)
Investments (continued)
Investments in equity securities are classified as fair value through profit or loss unless an irrevocable election is made by the
Group to measure at FVOCI. Investment in listed securities traded in liquid, active markets where prices are readily observable are
measured under Level 1 of the fair value hierarchy with no modelling or assumptions used in the valuation. Investments in
unlisted equity securities are measured under Level 3 of the fair value hierarchy with the fair value being based on unobservable
inputs using market accepted valuation techniques. Where appropriate, the Group may apply adjustments to the above-
mentioned techniques to determine fair value of an equity security to reflect the underlying characteristics. These adjustments
are reflective of market participant considerations in valuing the said security.
Equity Investment in Harmoney Corp Limited
Harmoney Corp Limited (Harmoney) listed on the ASX with a foreign exempt listing on the NZX on 19 November 2020, raising AU
$92.5 million as part of its Initial Public Offering (IPO). As part of the IPO, HGH, alongside other major shareholders, employees
and directors, entered into escrow arrangements that restrict the ability to sell its Harmoney shares, with approximately 72% of
total shares were subject to escrow arrangements (Escrow Restrictions) from the time that Harmoney completed its IPO. There
are two categories of escrowed shares: being unaffiliated escrow shareholders and affiliated escrow shareholders. The timing of
release of escrowed shareholdings is dependent on these categories. The escrowed shareholdings for unaffiliated escrow
shareholders have a two staged release with the first 50% of those escrowed shares released in September 2021 and the
remaining 50% released in March 2022. HGH is considered an unaffiliated escrow shareholder for its shareholding recorded at the
time of the IPO. The escrowed shareholdings for affiliated escrow shareholders have a three stage release with the first 25%
released in September 2021, a second 25% released in March 2022 and the remaining 50% of the affiliated escrow shares
(representing 16.3% of the total Harmoney shares on issue) expected to be released at the time or after the release of
Harmoney’s FY22 annual audited financial report.
Previously, the Escrow Restrictions had significantly reduced the available trading pool of shares, resulting in an illiquid market for
the instrument, wide bid-ask spreads and volume that is insufficient to meet the definition of an active market under NZ IFRS 13
Fair Value Measurement for purposes of Harmoney shares traded.
Considering the remaining pool of shares under Escrow Restrictions is no longer substantial as at 30 June 2022, the Group has
measured fair value of the equity investment in Harmoney using the quoted closing price of Harmoney of AU $0.71, which is a
Level 1 input within the fair value hierarchy.
For the prior reporting period, the fair value of HGH’s investment in Harmoney has been measured using a six-month volume
weighted average price (VWAP) of Harmoney shares traded on the ASX. This is considered Level 3 within the fair value hierarchy
as unobservable inputs under a market approach valuation technique were used. This VWAP was evaluated through a composite
valuation weighting the closing price of Harmoney shares as at 30 June 2021, revenue multiples of comparable public companies,
IPO price and analyst valuations. Both the VWAP and composite valuation approaches derived reasonably consistent outcomes.
The fair value measurement of HGH’s equity investment in Harmoney was AU $1.90 per share at 30 June 2021. This was a 26%
premium to the quoted closing price of AU $1.51.
Investment properties
Investment properties are initially recorded at their fair value, with subsequent changes in fair value recognised in profit or loss.
Fair value are determined by qualified independent valuers or other similar external evidence, adjusted for changes in market
conditions.
Investment properties have been acquired through the enforcement of security over finance receivables and are held to earn
rental income or for capital appreciation (or both).

P. 44
21 Fair value (continued)
Finance receivables - reverse mortgages
Reverse mortgage loans are classified at FVTPL. On initial recognition the Group considers the transaction price to represent the
fair value of the loan.
For subsequent measurement the Group has considered if the fair value can be determined by reference to a relevant
active market or observable inputs, but has concluded relevant support is not currently available. In the absence of such market
evidence the Group has used valuation techniques (income approach) including actuarial assessments to consider the fair value.
When the Group enters into a reverse mortgage loan the Group has set expectations regarding the loan’s current and future risk
profile and expectation of performance. This expectation references a wide range of assumptions including:
mortality and potential move into care;
voluntary exits;
house price changes;
no negative equity guarantee; and
interest rate margin.
At balance date the Group does not consider any of the above expectations to have moved outside of the original expectation
range. Therefore, the Group has continued to estimate the fair value of the portfolio at transaction price. There has been no fair
value movement recognised in profit or loss during the period (2021: nil). Fair value is not highly sensitive to the above
assumptions due to the nature of reverse mortgage loans. In particular, given conservative origination loan-to-value ratio criteria,
a material deterioration in house prices combined with a material increase in interest rates over a sustained period of time would
likely need to occur before any potential impact to fair value.
The Group will continue to reassess the existence of a relevant active market and movements in expectations on an on-going
basis.
Derivative financial instruments
Interest rate and foreign currency related contracts are recognised in the financial statements at fair value. Fair values are
determined from observable market prices as at the reporting date, discounted cash flow models or option pricing models as
appropriate (Level 2 under the fair value hierarchy).

P. 45
21 Fair value (continued)
(a) Financial instruments measured at fair value (continued)
The following table analyses financial instruments measured at fair value at the reporting date by the level in the fair value
hierarchy into which each fair value measurement is categorised. The amounts are based on the values recognised in the
consolidated statement of financial position.
$000'sLevel 1Level 2Level 3Total
June 2022
Assets
Investments279,841-7,032286,873
Investment properties--11,83211,832
Derivative financial instruments-45,221-45,221
Finance receivables - reverse mortgages--1,996,8541,996,854
Total financial assets measured at fair value279,84145,2212,015,7182,340,780
Liabilities
Derivative financial instruments-6,341-6,341
Total financial liabilities measured at fair value-6,341-6,341
June 2021
Assets
Investments259,04192,47620,667372,184
Investment properties--11,83211,832
Derivative financial instruments-14,139-14,139
Finance receivables - reverse mortgages--1,676,0731,676,073
Total financial assets measured at fair value259,041106,6151,708,5722,074,228
Liabilities
Derivative financial instruments-4,802-4,802
Total financial liabilities measured at fair value-4,802-4,802
During the year, $8.1 million of equity investments transferred out of Level 3 to Level 1. There were no other transfers between
levels in the fair value hierarchy in the year ended 30 June 2022 (2021: nil).

P. 46
21 Fair value (continued)
(a) Financial instruments measured at fair value (continued)
The movement in Level 3 assets measured at fair value are below:
Finance ReceivablesInvestment
$000's
- Reverse MortgageInvestmentspropertiesTotal
June 2022
As at 30 June 2021
1,676,07320,66711,8321,708,572
New loans
439,110--439,110
Repayments
(257,319)--(257,319)
Capitalised Interest and fees
106,966--106,966
Purchase of investments
-7,414-7,414
Fair value (loss)/gain on investment
-(12,998)-(12,998)
Other
32,024--32,024
Transfer out of Level 3
-(8,051)-(8,051)
As at 30 June 20221,996,8547,03211,8322,015,718
June 2021
As at 30 June 2020
1,538,58516,33511,1321,566,052
New loans
300,689--300,689
Repayments
(257,999)--(257,999)
Capitalised Interest and fees
91,812--91,812
Purchase of investments
-940-940
Fair value (loss)/gain on investment
-3,3927004,092
Other
2,986--2,986
As at 30 June 20211,676,07320,66711,8321,708,572
(b) Financial instruments not measured at fair value
The following assets and liabilities of the Group are not measured at fair value in the consolidated statement of financial position.
Cash and cash equivalents
Cash and cash equivalents are measured at amortised cost and their carrying value is considered equivalent to their fair value due
to their short term nature.
Finance receivables
The fair value of the Group's finance receivables is calculated using a valuation technique which assumes the Group's current
weighted average lending rates for loans of a similar nature and term.
The current weighted average lending rate used to fair value finance receivables with a fixed interest rate was 7.77% (2021:
7.08%). Finance receivables with a floating interest rate are deemed to be at current market rates. The current amount of credit
provisioning has been deducted from the fair value calculation of finance receivables as a proxy for future losses.

P. 47
21 Fair value (continued)
(b) Financial instruments not measured at fair value (continued)
Borrowings
The fair value of deposits, bank borrowings and other borrowings is the present value of future cash flows and is based on the
current market interest rates payable by the Group for debt of similar maturities. The average current market rate used to fair
value borrowings was 3.57% (2021: 1.23%).
Other financial assets and financial liabilities
The fair value of financial instruments such as short-term trade receivables and payables is considered equivalent to their carrying
value due to their short-term nature.
The following table sets out financial instruments not measured at fair value, compares their carrying value against their fair value
and analyses them by level in the fair value hierarchy.
June 2022June 2021
TotalTotal
Fair ValueTotal FairCarryingFair ValueTotal FairCarrying
$000'sHierarchyValueValueHierarchyValueValue
Assets
Cash and cash equivalentsLevel 1310,758310,758Level 1182,333182,333
Investments
1
Level 22,4182,421Level 25,6405,639
Finance receivablesLevel 34,073,9774,146,821Level 33,362,5363,288,466
Other financial assetsLevel 3273273Level 32,2922,292
Total financial assets4,387,4264,460,2733,552,8013,478,730
Liabilities
Retail depositsLevel 23,590,9183,592,508Level 23,192,7083,183,454
Borrowings - securitisedLevel 21,559,1081,559,108Level 2631,617631,617
Other borrowingsLevel 21,019,1051,019,105Level 21,043,5161,043,516
Other financial liabilitiesLevel 355,53855,538Level 318,68718,687
Total financial liabilities6,224,6696,226,2594,886,5284,877,274
1
Included within Investments are bank deposits which are held to support the Group's contractual cash flows. Such investments
are measured at amortised cost.

P. 48
21 Fair value (continued)
(c) Classification of financial instruments
The following tables summarise the categories of financial instruments and the carrying value and fair value of all financial
instruments of the Group:
Total
AmortisedCarryingTotal Fair
$000'sFVOCIFVTPLCostValueValue
June 2022
Assets
Cash and cash equivalents--310,758310,758310,758
Investments277,3189,5552,421289,294289,291
Investment properties-11,832-11,83211,832
Finance receivables--4,146,8214,146,8214,073,977
Finance receivables - reverse mortgages-1,996,854-1,996,8541,996,854
Derivative financial instruments26,13719,084-45,22145,221
Other financial assets--273273273
Total financial assets303,4552,037,3254,460,2736,801,0536,728,206
Liabilities
Deposits--3,592,5083,592,5083,590,918
Other borrowings--2,578,2132,578,2132,578,213
Derivative financial instruments1,1055,236-6,3416,341
Other financial liabilities--55,53855,53855,538
Total financial liabilities1,1055,2366,226,2596,232,6006,231,010
June 2021
Assets
Cash and cash equivalents--182,333182,333182,333
Investments351,51720,6675,639377,823377,824
Investment properties-11,832-11,83211,832
Finance receivables--3,288,4663,288,4663,362,536
Finance receivables - reverse mortgages-1,676,073-1,676,0731,676,073
Derivative financial instruments3,23010,909-14,13914,139
Other financial assets--2,2922,2922,292
Total financial assets354,7471,719,4813,478,7305,552,9585,627,029
Liabilities
Deposits--3,183,4543,183,4543,192,708
Other borrowings--1,675,1331,675,1331,675,133
Derivative financial instruments4,408394-4,8024,802
Other financial liabilities--18,68718,68718,687
Total financial liabilities4,4083944,877,2744,882,0764,891,330

P. 49
Risk Management
22 Enterprise risk management program
The board of directors (the Board) sets and monitors the Group’s risk appetite across the primary risk domains of credit, capital,
liquidity, market (including interest rate), operational and compliance and general business risk. Management are, in turn,
responsible for ensuring appropriate structures, policies, procedures and information systems are in place to actively manage
these risk domains, as outlined within the Enterprise Risk Management Framework (ERMF). Collectively, these processes are
known as the Group's Enterprise Risk Management Program (RMP).
Role of the Board and the Board Audit Risk Committee
The Board, through its Board Audit and Risk Committee (BARC) is responsible for oversight and governance of the development of
the RMP. The role of the BARC includes assisting the Board to formulate its risk appetite, and monitoring the effectiveness of the
RMP. BARC’s responsibilities also include:
Financial reporting and application of accounting policies as part of the internal control and risk assessment framework.
Monitors the identification, evaluation and management of all significant risks through the Group. This work is supported by
internal audit, which provides an independent assessment of the design, adequacy and effectiveness of internal controls. The
BARC receives regular reports from internal audit.
To advise the Board on the formulation of the Board's Risk Appetite Statement.
To review any reports, policies, standards, other risk documents or matters, or minutes which have been prepared by or in
respect of the HGH's Board.
To monitor material, emerging and strategic risks for the Group and its subsidiaries.
Internal Audit
The Group has an Internal Audit function, the objective of which is to provide independent, objective assurance over the internal
control environment. In certain circumstances, Internal Audit will provide risk and control advice to Management provided the
work does not impede the independence of the Internal Audit function. The function assists the Group in accomplishing its
objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management,
control, and governance processes.
Internal Audit is allowed full, free and unfettered access to any and all of the organisation’s records, personnel and physical
properties deemed necessary to accomplish its activities.

P. 50
22 Enterprise risk management program (continued)
Internal Audit (continued)
A regular cycle of review has been implemented to cover all areas of the business, focused on assessment, management and
control of risks identified. The audit plan takes into account cyclical review of various business units and operational areas, as
well as identified areas of higher identified risk. The audit methodology is designed to meet the International Standards for the
Professional Practice of Internal Auditing of The Institute of Internal Auditors.
Each audit has specific audit procedures tailored to the area of business that is being reviewed. The audit procedures are updated
during each audit to reflect any process changes. Audit work papers are completed to evidence the testing performed in
accordance with the audit procedures.
Audit reports are addressed to the manager of the relevant area that is being audited in addition to other relevant stakeholders
within the Group. Management comments are obtained from the process owner(s) and are included in the report.
The Head of Internal Audit has a direct reporting line to the Chair of the BARC. Internal audit has accountability to the BARC of the
Group. A schedule of all outstanding internal control issues is maintained and presented to the BARC to assist and track the
resolution of previously identified issues. Any issues raised that are categorised as high risk are specifically reviewed by internal
audit during a follow up review once the issue is considered closed by management. The follow up review is performed with a
view to formally close out the issue.
Asset and Liability Committee (ALCO)
The ALCO comprises the CEO HBL, CFO, CRO, Head of Retail, Financial Controller HBL and Chief Distribution Officer. The ALCO
generally meets monthly, and provides reports to the BARC. ALCO's specific responsibilities include decision making and oversight
of risk matters in relation to:
Market risk (including non-traded interest rate risk and the investment of capital).
Liquidity risk (including funding).
Foreign exchange rate risk.
Balance sheet structure.
Capital management.
Operational and compliance risk
Operational and compliance risk is the risk arising from day to day operational activities in the execution of the Group's strategy
which may result in direct or indirect loss. Operational and compliance risk losses can occur as a result of fraud, human error,
missing or inadequately designed processes, failed systems, damage to physical assets, improper behaviour or from external
events. The losses range from direct financial losses, to reputational damage, unfavourable media attention, injury to or loss of
staff or clients or as a breach of laws or banking regulations. Where appropriate, risks are mitigated by insurance.
To ensure appropriate responsibility is allocated for the management, reporting and escalation of operational and compliance
risk, the Group operates a “three lines of defence” model which outlines principles for the roles, responsibilities and
accountabilities for operational and compliance risk management:

P. 51
22 Enterprise risk management program (continued)
Operational and compliance risk (continued)
The first line of defence is the business line management of the identification, management and mitigation of the risks
associated with the products and processes of the business. This accountability includes regular testing and attestation of the
adequacy and effectiveness of controls and compliance with the Group's policies.
The second line of defence is the Risk and Compliance function, responsible for the design and ownership of the Operational
Risk Management Framework. It incorporates key processes including Risk and Control Self-Assessment (RCSA), incident
management, independent evaluation of the adequacy and effectiveness of the internal control framework, and the
attestation process.
The third line of defence is Internal Audit which is responsible for independently assessing how effectively the Group is
managing its risk according to its stated risk appetite.
Market risk
Market risk is the possibility of experiencing losses or gains due to factors affecting the overall performance of financial markets
in which the Group is exposed. The primary market risk exposures for the Group are interest rate risk and foreign exchange risk.
The risk being that market interest rates or foreign exchange rates will change and adversely impact on the Group’s earnings due
to either adverse moves in foreign exchange market rates or in the case of interest rate risks mismatches between repricing dates
of interest bearing assets and liabilities and/or differences between customer pricing and wholesale rates.
Interest rate risk
Interest rate risk refers to exposure of an entity’s earnings and / or capital because of a mismatch between the interest rate
exposures of its assets and liabilities. Interest rate risk for the Group arises from the provision of non-traded retail banking
products and services and from traded wholesale transactions entered into to reduce aggregate interest rate risk (known as
hedges). This risk arises from four key sources:
Mismatches between the repricing dates of interest bearing assets and liabilities (yield curve and repricing risk);
Banking products repricing differently to changes in wholesale market rates (basis risk);
Loan prepayment or deposit early withdrawal behaviour from customers that deviates from the expected or contractually
agreed behaviour (optionality risk); and
The effect of internal or market forces on a bank’s net interest margin where, for example, in a low rate environment any fall
in rates will further decrease interest income earned on the assets whereas funding cost cannot be reduced as it is already at
the minimum level (margin compression risk).
Refer to Note 25 - Interest rate risk for further details regarding interest rate risk.

P. 52
22 Enterprise risk management program (continued)
Foreign exchange risk
Foreign exchange risk is the risk that the Group’s earnings and shareholder equity position are adversely impacted from changes
in foreign exchange rates. The Group has exposure to foreign exchange translation risks through its Australian subsidiaries (which
have a functional currency of Australian dollars (AUD)), in the forms of profit translation risk and balance sheet translation risk.
Profit translation risk is the risk that deviations in exchange rates have a significant impact on the reported profit. Balance sheet
translation risk is the risk that whilst the foreign currency value of the net investment in a subsidiary may not have changed, when
translated back to the New Zealand dollars (NZD), the NZD value has changed materially due to movements in the exchange rates.
Foreign exchange revaluation gains and losses are booked to the foreign currency translation reserve. Foreign exchange rate
movements in any given year may have an impact on other comprehensive income. The Group manages this risk by setting and
approving the foreign exchange rate for the upcoming financial year and entering into hedging contracts to manage the foreign
exchange translation risks.
Counterparty Credit Risk
The Group has on-going credit exposure associated with:
Cash and cash equivalents;
Finance receivables;
Holding of investment securities; and
Payments owed to the Group from risk management instruments.
Counterparty credit risk is managed against limits set in the Market Risk Policy including credit exposure on derivative contracts,
bilateral set-off arrangements, cash and cash equivalents and investment securities.

P. 53
23 Credit risk exposure
Credit risk is the risk that a borrower will default on any type of debt by failing to make payments which it is obligated to make.
The risk is primarily that of the lender and includes loss of principal and interest, disruption to cash flows and increased collection
costs.
Credit risk is managed to achieve sustainable risk-reward performance whilst maintaining exposures within acceptable risk
“appetite” parameters. This is achieved through the combination of governance, policies, systems and controls, underpinned by
commercial judgement as described below.
To manage this risk the HBL’s Executive Risk Committee (ERC) oversees the formal credit risk management strategy. The ERC
reviews the Group's credit risk exposures typically on a monthly basis. The credit risk management strategies aim to ensure that:
Credit origination meets agreed levels of credit quality at point of approval;
Sector concentrations are monitored;
Maximum total exposure to any one debtor is actively managed;
Changes to credit risk are actively monitored with regular credit reviews.
The BARC also oversees the Group's credit risk exposures to monitor overall risk metrics having regard to risk appetite set by the
Board.
HBL's Board Risk Committee (BRC) has authority for approval of all credit exposures. Lending authority has been provided to the
HBL's Credit Committee, and to the business units under a detailed Delegated Lending Authority framework. Application of credit
discretions in the business operation are monitored through a defined review and hindsight structure as outlined in the Credit
Risk Oversight Policy. Delegated Lending Authorities are provided to individual officers with due cognisance of their experience
and ability. Larger and higher risk exposures require approval of senior management, the Credit Committee and ultimately
through to HBL's BRC.
The Group employs a credit risk oversight process of hindsighting loans to ensure that credit policies and the quality of credit
processes are maintained.
Reverse mortgage loans and negative equity risk
Reverse mortgage loans are a form of mortgage lending designed for the needs of people over 60 years of age. These loans differ
to conventional mortgages in that they typically are not repaid until the borrower ceases to reside in the property. Further,
interest is not required to be paid, it is capitalised into the loan balance and is repayable on termination of the loan. As such,
there are no incoming cash flows and therefore no default risk to manage during the term of the loan. Negative equity risk arises
from the promise by the Group that the maximum repayment amount is limited to the net sale proceeds of the borrowers'
property.
The Group’s exposure to negative equity risk is managed by the Credit Risk Oversight Policy in conjunction with associated lending
standards specific for this product. In addition to usual criteria regarding the type, and location, of security property that the
Group will accept for reverse mortgage lending, a key aspect of the Group's policy is that a borrower’s age on origination of the
reverse mortgage loan will dictate the loan-to-value ratio of the reserve mortgage on origination. Both New Zealand and Australia
reverse mortgage operations are similarly aligned. The policy is managed and reviewed periodically to ensure appropriate
consistency across locations.
Business Finance Guarantee Scheme (BFGS)
HBL, along with other registered banks in New Zealand, has entered into a Deed of Indemnity with the New Zealand
Government to implement the New Zealand Government's Business Finance Guarantee Scheme. The purpose of the scheme is to
provide short term credit to eligible small and medium size businesses, who have been impacted by the economic effects of
COVID-19. The scheme allows banks to lend to a maximum of $5 million for a maximum of five years. The New Zealand
Government will guarantee 80% of any loss incurred (credit risk) with HBL holding the remaining 20%. As at 30 June 2022 the
Group had a total exposure of $64.8 million (2021: $64.3 million) to its customers under the scheme. BFGS has concluded on 30
June 2021 with scheme loans no longer being available.

P. 54
23 Credit risk exposure (continued)
Maximum exposure to credit risk at the relevant reporting dates
The following table represents the maximum credit risk exposure, without taking into account any collateral held. The on balance
sheet exposures set out below are based on net carrying amounts as reported in the consolidated statement of financial position.
$000'sJune 2022June 2021
On balance sheet:
Cash and cash equivalents310,758182,333
Investments274,212357,156
Finance receivables4,146,8213,288,466
Finance receivables - reverse mortgages1,996,8541,676,073
Derivative financial assets45,22114,139
Other financial assets2732,292
Total on balance sheet credit exposures6,774,1395,520,459
Off balance sheet:
Letters of credit, guarantee commitments and performance bonds8,96913,484
Undrawn facilities available to customers416,561299,544
Conditional commitments to fund at future dates34,79119,083
Total off balance sheet credit exposures460,321332,111
Total credit exposures7,234,4605,852,570
As at 30 June 2022 there was $0.003 million undrawn lending commitments available to counterparties for whom drawn balances
are classified as individually impaired (2021: $0.216 million).
Concentration of credit risk by geographic region
$000'sJune 2022June 2021
New Zealand5,264,6094,402,656
Australia1,809,1041,243,522
Rest of the world
1
212,752260,079
7,286,4655,906,257
Provision for impairment(52,005)(53,687)
Total credit exposures7,234,4605,852,570
1
These overseas assets are primarily NZD-denominated investments in AA+ and higher rated securities issued by offshore
supranational agencies ("Kauri Bonds").

P. 55
23 Credit risk exposure (continued)
Concentration of credit risk by industry sector
The Australian and New Zealand Standard Industrial Classification (ANZSIC) codes have been used as the basis for categorising
customer and investee industry sectors.
$000'sJune 2022June 2021
Agriculture1,120,678670,428
Forestry and fishing148,797153,160
Mining12,52412,684
Manufacturing78,43276,951
Finance and insurance784,948674,854
Wholesale trade41,98656,522
Retail trade and accommodation 423,975279,388
Households3,555,5662,994,980
Other business services189,860148,011
Construction291,971241,668
Rental, hiring and real estate services199,388185,320
Transport and storage323,732297,920
Other114,608114,371
7,286,4655,906,257
Provision for impairment(52,005)(53,687)
Total credit exposures7,234,4605,852,570
Credit risk grading
The Group's finance receivables are monitored either by account behaviour (Behavioural portfolio) or a regular assessment of
their credit risk grade based on an objective review of defined risk characteristics (Judgemental portfolio).
Finance receivables - reverse mortgages have no arrears characteristics and are assessed on origination against a pre-determined
criteria.
The Judgemental portfolio consists mainly of business and rural lending where an on-going and detailed working relationship with
the customer has been developed while the Behavioural portfolio consists of consumer, retail and smaller business receivables.
Judgemental loans are individually risk graded based on loan status, financial information, security and debt servicing ability.
Exposures in the Judgemental portfolio are credit risk graded by an internal risk grading mechanism where grade 1 is the
strongest risk. Grade 8 and grade 9 are the weakest risk grades where a loss is probable. Behavioural loans are managed based on
their arrears status.
Upon adoption of NZ IFRS 9 all loans past due but not impaired have been categorised into three impairments stages (see Note 8)
which are in most cases based on arrears status. If a Judgemental loan is risk graded 6 or above it will be classified as stage 2 as a
minimum and carry a provision based on lifetime ECL.

P. 56
23 Credit risk exposure (continued)
Credit risk grading (continued)
Lifetime
ECLLifetime
12 Months Not CreditECL CreditSpecifically
$000's
ECLImpairedImpairedProvidedFair valueTotal
June 2022
Judgemental portfolio
Grade 1 - Very Strong26----26
Grade 2 - Strong10,859----10,859
Grade 3 - Sound53,756----53,756
Grade 4 - Adequate697,5905,3821,052--704,024
Grade 5 - Acceptable1,366,6801,82353--1,368,556
Grade 6 - Monitor-25,1062,308--27,414
Grade 7 - Substandard-64,2034,998--69,201
Grade 8 - Doubtful---62,860-62,860
Grade 9 - At risk of loss---3,511-3,511
Total Judgemental portfolio2,128,91196,5148,41166,371-2,300,207
Total Behavioural portfolio1,839,00621,91037,703-1,996,8543,895,473
Gross finance receivables3,967,917118,42446,11466,3711,996,8546,195,680
Provision for impairment(20,256)(1,958)(14,602)(15,189)-(52,005)
Total finance receivables3,947,661116,46631,51251,1821,996,8546,143,675
June 2021
Judgemental portfolio
Grade 1 - Very Strong34----34
Grade 2 - Strong10,85464---10,918
Grade 3 - Sound50,816163---50,979
Grade 4 - Adequate580,2894,6751,734--586,698
Grade 5 - Acceptable877,3935,6581,882--884,933
Grade 6 - Monitor-58,1781,038--59,216
Grade 7 - Substandard-71,7188,107--79,825
Grade 8 - Doubtful---33,228-33,228
Grade 9 - At risk of loss---4,915-4,915
Total Judgemental portfolio1,519,386140,45612,76138,143-1,710,746
Total Behavioural portfolio1,573,26725,33732,803-1,676,0733,307,480
Gross finance receivables3,092,653165,79345,56438,1431,676,0735,018,226
Provision for impairment(26,807)(2,427)(16,824)(7,629)-(53,687)
Total finance receivables3,065,846163,36628,74030,5141,676,0734,964,539

P. 57
24 Liquidity risk
Liquidity risk is the risk that the Group is unable to meet its payment obligations as they fall due. The timing mismatch of cash
flows and the related liquidity risk in all banking operations and is closely monitored by the Group.
Measurement of liquidity risk is designed to ensure that the Group has the ability to generate or obtain sufficient cash in a timely
manner and at a reasonable price to meet its financial commitments on a daily basis.
The Group’s exposure to liquidity risk is governed by a policy approved by the Board and managed by the Asset and Liability
Committee (ALCO). This policy sets out the nature of the risk which may be taken and aggregate risk limits, which ALCO must
observe. Within this, the objective of the ALCO is to derive the most appropriate strategy for the Group in terms of a mix of assets
and liabilities given its expectations of future cash flows, liquidity constraints and capital adequacy. The ALCO employs asset and
liability cash flow modelling to determine appropriate liquidity and funding strategies.
Reserve Bank of New Zealand (RBNZ) facilities
In March 2020, HBL was onboarded by the RBNZ as an approved counterparty and executed a 2011 Global Master Repo
Agreement providing an additional source for intra-day liquidity for the Group if required.
From 26 May 2020, the RBNZ made available a Term Lending Facility (TLF) to offer loans for a fixed term of three years at the
Official Cash Rate, with access to the funds linked to banks’ lending under the Business Finance Guarantee Scheme. On 25 May
2021, RBNZ announced to close TLF applications on 28 July 2021.
Additional stimulus provided through a Funding for Lending Programme also commenced in December 2020 designed to enable
banks to provide low-cost lending to the customer.
The Group had not utilised any of these facilities as at 30 June 2022 (2021: nil).
The Group holds the following liquid assets and committed funding sources for the purpose of managing liquidity risk:
$000'sJune 2022June 2021
Cash and cash equivalents310,758182,333
Investments274,212357,156
Undrawn committed bank facilities360,859311,993
Total liquidity945,829851,482

P. 58
24 Liquidity risk (continued)
Contractual liquidity profile of financial liabilities
The following tables present the Group's financial liabilities by relevant maturity groupings based upon contractual maturity date.
The amounts disclosed in the tables represent undiscounted future principal and interest cash flows. As a result, the amounts in
the tables below may differ to the amounts reported on the consolidated statement of financial position.
The contractual cash flows presented below may differ significantly from actual cash flows. This occurs as a result of future
actions by the Group and its counterparties, such as early repayments or refinancing of term loans and borrowings. Deposits and
other public borrowings include customer savings deposits and transactional accounts, which are at call. These accounts provide a
stable source of long term funding for the Group.
On0-66-121-22-55+
$000'sDemandMonthsMonthsYearsYearsYearsTotal
June 2022
Non - derivative financial liabilities
Deposits887,9762,028,225561,468103,19241,655-3,622,516
Other borrowings-505,191268,653702,3491,160,157210,4282,846,778
Lease liabilities-1,5751,5252,6166,9854,91117,612
Other financial liabilities-55,538----55,538
Total non - derivative financial liabilities887,9762,590,529831,646808,1571,208,797215,3396,542,444
Derivative financial liabilities
Inflows from derivatives-15,6811,7593,505813-21,758
Outflows from derivatives-14,8003,2276,621839-25,487
Total derivative financial liabilities-(881)1,4683,11626-3,729
Undrawn facilities available to customers416,561-----416,561
Undrawn committed bank facilities360,859-----360,859
June 2021
Non - derivative financial liabilities
Deposits971,9241,291,863560,232292,09191,107-3,207,217
Other borrowings-124,431120,8551,205,547157,855181,2441,789,932
Lease liabilities-1,4191,4332,8367,6057,08520,378
Other financial liabilities-18,687----18,687
Total non - derivative financial liabilities971,9241,436,400682,5201,500,474256,567188,3295,036,214
Derivative financial liabilities
Inflows from derivatives-14,25161080012-15,673
Outflows from derivatives-16,7502,1741,31616-20,256
Total derivative financial liabilities-2,4991,5645164-4,583
Undrawn facilities available to customers299,544-----299,544
Undrawn committed bank facilities311,993-----311,993

P. 59
25 Interest rate risk
The Group's market risk is derived primarily of exposure to interest rate risk, predominantly from raising funds through
the retail and wholesale deposit market, the debt capital markets and committed and uncommitted bank funding, securitisation
of receivables, and offering loan finance products to the commercial and consumer market in New Zealand and Australia.
The Group’s exposure to market risk is governed by a policy approved by the Board and managed by the ALCO. This
policy sets out the nature of risk which may be taken and aggregate risk limits, and the ALCO must conform to this. The objective
of the ALCO is to derive the most appropriate strategy for the Group in terms of the mix of assets and liabilities given its
expectations of the future and the potential consequences of interest rate movements, liquidity constraints and capital
adequacy.
The objective of the Group’s interest rate risk policies is to limit underlying net profit after tax (NPAT) volatility. The
measurement comprises net interest income the Group generates from its interest earning assets and interest bearing
liabilities.
The exposure to net interest income comes from a reduction in margins on interest earning assets or interest bearing liabilities
and is managed when setting rates by taking into consideration wholesale rates, liquidity premiums, as well as appropriate
lending credit margins.
An analysis of the Group’s sensitivity to an increase (+) or decrease (-) in market interest rates by 100 basis points (BP) is
as follows. An (+)/(-) to market interest rates of 100 BP would result in a $0.67 million (+)/(-) to NPAT (2021: $0.45 million (+)/(-))
with a corresponding impact to equity.
The Group also manages interest rate risk by:
Monitoring maturity profiles and seeking to match the re-pricing of assets and liabilities;
Monitoring interest rates daily and regularly (at least monthly) reviewing interest rate exposures; and
Entering into derivatives to hedge against movements in interest rates.

P. 60
25 Interest rate risk (continued)
Contractual repricing analysis
The interest rate risk profile of financial assets and liabilities that follows has been prepared on the basis of maturity or next
repricing date, whichever is earlier.
Non-
0-33-66-121-22+Interest
$000'sMonthsMonthsMonthsYearsYearsBearingTotal
June 2022
Financial assets
Cash and cash equivalents310,749----9310,758
Investments1,56885451,14491,974128,67215,082289,294
Finance receivables1,906,457277,891426,251561,636913,21061,3764,146,821
Finance receivables - reverse mortgages1,996,854-----1,996,854
Derivative financial assets-----45,22145,221
Other financial assets-----273273
Total financial assets4,215,628278,745477,395653,6101,041,882121,9616,789,221
Financial liabilities
Deposits2,190,337684,378546,71899,19638,32533,5543,592,508
Other borrowings2,320,575130,873-121,191-5,5742,578,213
Derivative financial liabilities-----6,3416,341
Lease liabilities-----16,24016,240
Other financial liabilities-----55,53855,538
Total financial liabilities4,510,912815,251546,718220,38738,325117,2476,248,840
Effect of derivatives held for risk
management
986,194(76,349)(127,004)(309,781)(473,060)--
Net financial assets/(liabilities)690,910(612,855)(196,327)123,442530,4974,714540,381

P. 61
25 Interest rate risk (continued)
Contractual repricing analysis (continued)
Non-
0-33-66-121-22+Interest
$000'sMonthsMonthsMonthsYearsYearsBearingTotal
June 2021
Financial assets
Cash and cash equivalents182,323----10182,333
Investments31,8968,03419,66953,505244,05220,667377,823
Finance receivables1,587,718151,674299,305462,900715,03271,8373,288,466
Finance receivables - reverse mortgages1,676,073-----1,676,073
Derivative financial assets-----14,13914,139
Other financial assets-----2,2922,292
Total financial assets3,478,010159,708318,974516,405959,084108,9455,541,126
Financial liabilities
Deposits1,670,667570,068554,340285,02585,07718,2773,183,454
Other borrowings1,342,61250,837-153,751127,933-1,675,133
Derivative financial liabilities-----4,8024,802
Lease liabilities-----18,16618,166
Other financial liabilities-----18,68718,687
Total financial liabilities3,013,279620,905554,340438,776213,01059,9324,900,242
Effect of derivatives held for risk
management
474,010(9,023)(146,067)(85,669)(233,251)--
Net financial assets/(liabilities)938,741(470,220)(381,433)(8,040)512,82349,013640,884
The tables above illustrate the periods in which the cash flows from interest rate swaps are expected to occur and affect profit or
loss.

P. 62
Other Disclosures
26 Significant subsidiaries
Proportion of ownership
and voting power held
Country of
incorporation
and place of
Significant SubsidiariesbusinessNature of businessJune 2022June 2021
Heartland Bank LimitedNew ZealandBank100%100%
VPS Properties LimitedNew ZealandInvestment property holding company100%100%
Marac Insurance LimitedNew ZealandInsurance services100%100%
Heartland Australia Holdings Pty LimitedAustraliaFinancial services100%100%
Heartland Group Pty LimitedAustraliaFinancial services100%100%
Australian Seniors Finance Pty LimitedAustraliaManagement services100%100%
StockCo Holdings 2 Pty LimitedAustraliaFinancial services100%-
StockCo Australia Management Pty LimitedAustraliaManagement services100%-
27 Structured entities
A structured entity is one which has been designed such that voting or similar rights are not the dominant factor in deciding who
controls the entity. Structured entities are created to accomplish a narrow and well-defined objective such as the securitisation or
holding of particular assets, or the execution of a specific borrowing or lending transaction. Structured entities are consolidated
where the substance of the relationship is that the Group controls the structured entity.
(a) Heartland Cash and Term PIE Fund (Heartland PIE Fund)
The Group controls the operations of the Heartland PIE Fund which is a portfolio investment entity that invests in the Group's
deposits. Investments of Heartland PIE Fund are represented as follows:
$000'sJune 2022June 2021
Deposits149,824153,244
(b) Heartland Auto Receivable Warehouse Trust 2018-1 (Auto Warehouse)
The Auto Warehouse securitises motor loan receivables as a source of funding.
The Group continues to recognise the securitised assets and associated borrowings in the consolidated statement of financial
position as the Group remains exposed to and has the ability to affect variable returns from those assets and liabilities. Although
the Group recognises those interests in Auto Warehouse, the loans sold to the Trust are set aside for the benefit of investors in
Auto Warehouse and other depositors and lenders to the Group have no recourse to those assets.
$000'sJune 2022June 2021
Cash and cash equivalents20,1979,047
Finance receivables312,239126,399
Other borrowings(315,308)(128,125)

P. 63
27 Structured entities (continued)
(c)Seniors Warehouse Trust, Seniors Warehouse Trust No.2 (together the SW Trusts) and ASF Settlement Trust (ASF Trust)
SW Trusts and ASF Trust (collectively the Trusts) form part of ASF's reverse mortgage business and were set up by ASF as asset
holding entities. The Trustee for the Trusts is ASF Custodians Pty Limited and the Trust Manager is ASF. The reverse mortgage
loans held by the Trusts are set aside for the benefit of the investors in the Trusts. The balances of SW Trusts and ASF Trust are
represented as follows:
$000'sJune 2022June 2021
Cash and cash equivalents26,00329,170
Finance receivables - reverse mortgages1,136,644934,523
Other borrowings(902,155)(822,112)
(d) Atlas 2020-1 Trust (Atlas Trust)
Atlas Trust was set up on 11 September 2020 as part of ASF's reverse mortgage business similar to the existing SW Trusts and ASF
Trust. The Trustee for the Trust is BNY Trust Company of Australia Limited and the Trust Manager is ASF. The balances of Atlas
Trust are represented as follows:
$000'sJune 2022June 2021
Cash and cash equivalents15,77417,592
Finance receivables - reverse mortgages138,950140,044
Other borrowings(145,219)(145,943)
(e) StockCo Securitisation Trust 2022-1
StockCo Securitisation Trust 2022-1 was set up on 31 May 2022 as part of StockCo's livestock business. The Trustee for the Trust is
AMAL Trustees Pty Limited and the Trust Manager is AMAL Management Services Pty Limited. The balances of StockCo
Securitisation Trust 2022-1 are represented as follows:
$000'sJune 2022
Cash and cash equivalents15,007
Finance receivables354,901
Other borrowings(311,415)

P. 64
28 Staff share ownership arrangements
The Group operates a number of share-based compensation plans that are equity settled. The fair value determined at the grant
date is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will
eventually vest, with a corresponding increase in equity. At the end of each reporting period the Group revises its estimate of the
number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit
or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the employee benefits
reserve.
(a) Share-based compensation plan details
Heartland performance rights plan (PR plan)
The PR plan was established to enhance the alignment of participants' interests with those of the Group’s shareholders. Under
the PR plan participants are issued performance rights which will entitle them to receive shares in the Group. As at June 2022,
there were 6 tranches being 2017, 2018, 2022, 2023, 2024 and 2025. All tranches are subject to the existing rules of the PR plan.
PR Plan 2017 Tranche and PR Plan 2018 Tranche (collectively the Legacy Tranches)
The rules for the Legacy Tranches have been aligned with PR plan 2022 Tranche and therefore have the same terms and
conditions applying regarding participants, awarding of performance rights, measurement date and vesting as outlined below:
PR Plan 2022 Tranche (PR plan 2022)
The number of performance rights offered is determined by the participant’s long-term incentive (LTI) value over the volume
weighted average price (VWAP) of the Group's ordinary shares on the NZX Main Board for the 20 business days immediately
before (and excluding) the issue date. The issue date is 14 September 2019. Performance rights do not entitle participants to
dividends or voting rights.
The performance rights are issued subject to the participants’ continued employment with the Group until the measurement date
and the Group achieving its financial measures, strategic objectives and culture and conduct objectives, over the period
commencing 1 July 2019 and ending on 30 June 2022. The targets are dynamic and may be adjusted by the Board from time to
time in order to account for unanticipated capital changes during the performance period. The measurement date is the business
day following the date on which the Group announces its full year results for the financial year ended 2022.
Performance rights will vest on the measurement date to the extent these criteria have been met, but subject to caps and also to
retesting on a later measurement date if the criteria are not met on the initial measurement date.
PR Plan 2023 Tranche (PR plan 2023)
PR plan 2023 was issued for period commencing 1 July 2020 and ending on 30 June 2023. The tranche rules have been aligned
with PR plan 2022. The measurement date for this tranche is the business day after the Group announces its full year results for
the financial year ended 30 June 2023.

P. 65
28 Staff share ownership arrangements (continued)
(a) Share-based compensation plan details (continued)
PR Plan 2024 Tranche (PR plan 2024) and PR Plan 2025 Tranche (PR plan 2025)
PR plan 2024 and PR plan 2025 were issued for period commencing 1 July 2021 and ending on 30 June 2024 and 30 June 2025
respectively. The tranche rules have been aligned with PR plan 2022. Measures are tested on the business day after the
announcement of full year results for the financial years ended 30 June 2024 and 30 June 2025 respectively.
June 2022June 2021
PR PlanPR Plan
Number of Number of
RightsRights
Opening balance7,742,2763,216,927
Issued2,454,3955,342,289
Forfeited(1,395,575)(816,940)
Closing balance8,801,0967,742,276
(b) Effect of share-based payment transactions
$000'sJune 2022June 2021
Award of Shares
PR Plan1,9151,797
Total expense recognised1,9151,797
As at 30 June 2022, $3.1 million of the share scheme awards remain unvested and not expensed (2021: $3.0 million). This expense
will be recognised over the performance period of the awards.
(c) Number of rights outstanding
June 2022June 2021
RightsRemaining RightsRemaining
$000'sOutstandingYearsOutstandingYears
PR Plan - 20171,543-1,9431
PR Plan - 2018139-1701
PR Plan - 2022568-7221
PR Plan - 20234,09614,9082
PR Plan - 20249222--
PR Plan - 20251,5333--
Total8,8017,743

P. 66
29 Insurance business, securitisation, funds management, other fiduciary activities
Insurance business
Marac Insurance Limited (MIL), a subsidiary of HBL, no longer conducts insurance business as HBL entered into a distribution
agreement with DPL Insurance Limited (DPL) to distribute DPL’s insurance products through HBL's network. MIL ceased writing
insurance policies in 2020 with the periodic policies expected to expire in 2025.
The Group's aggregate amount of insurance business comprises the total consolidated assets of MIL of $7.4 million (2021: $8.5
million), which represents 0.11% of the total consolidated assets of the Group (2021: 0.15%).
Securitisation, funds management and other fiduciary activities
Changes to the Group’s involvement in securitisation activities are set out in Note 27 Structured entities. There have been no
material changes to the Group’s involvement in funds management and other fiduciary activities during the year.
30 Concentrations of funding
(a) Concentration of funding by industry
The Australian and New Zealand Standard Industrial Classification (ANZSIC) codes have been used as the basis for categorising
customer and investee industry sectors.
$000'sJune 2022June 2021
Agriculture113,848102,107
Forestry and fishing14,39114,226
Mining1,52494
Manufacturing18,64311,592
Finance and insurance2,420,8501,669,055
Wholesale trade5,85411,218
Retail trade and accommodation19,49128,521
Households2,754,4522,322,514
Rental, hiring and real estate services43,79746,245
Construction28,44924,231
Other business services66,73158,334
Transport and storage4,5984,337
Other 41,68644,714
Total5,534,3144,337,188
Unsubordinated Notes636,407521,399
Total borrowings6,170,7214,858,587
(b) Concentration of funding by geographical area
$000'sJune 2022June 2021
New Zealand4,410,3723,599,337
Overseas1,760,3491,259,250
Total borrowings6,170,7214,858,587

P. 67
31 Contingent liabilities and commitments
The Group in the ordinary course of business will be subject to claims and proceedings against it whereby the validity of the claim
will only be confirmed by uncertain future events. In such circumstances the contingent liabilities are possible obligations, or
present obligations if known, where the transfer of economic benefit is uncertain or cannot be reliably measured. Contingent
liabilities are not recognised, but are disclosed, unless they are remote. Where some loss is probable, provisions have been made
on a case by case basis.
Contingent liabilities and credit related commitments arising in respect of the Group's operations were:
$000'sJune 2022June 2021
Letters of credit, guarantee commitments and performance bonds8,96913,484
Total contingent liabilities8,96913,484
Undrawn facilities available to customers416,561299,544
Conditional commitments to fund at future dates34,79119,083
Total commitments451,352318,627
32 Events after reporting date
HGH subsidiary Heartland Australia Group Pty Limited completed an issuance of an AU $30 million senior unsecured bond on 16
August 2022 as an increase to the existing AU $45 million senior unsecured bond.
On 9
th
August 2022 the Group completed an AU $5 million investment in Avenue Hold Limited (Avenue Hold). Avenue Hold is the
Non-operating Holding Company of Avenue Bank Limited which holds a Restricted Authorised Deposit-taking Institution licence in
Australia.
The Group approved a fully imputed final dividend of 5.5 cents per share on 22 August 2022.
There were no other events subsequent to the reporting period which would materially affect the consolidated financial
statements.

© 2022 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. All rights reserved.
68

Independent Auditor’s Report
To the shareholders of Heartland Group Holdings Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the consolidated financial statements
of Heartland Group Holdings Limited and its
subsidiaries (the “Group”) on pages 7 to 67 present
fairly in all material respects the Group’s financial
position as at 30 June 2022 and its financial
performance and cash flows for the year ended on
that date in accordance with New Zealand
Equivalents to International Financial Reporting
Standards and International Financial Reporting
Standards.
We have audited the accompanying consolidated
financial statements which comprise:
— the consolidated statement of financial position
as at 30 June 2022;
— the consolidated statements of comprehensive
income, changes in equity and cash flows for the
year then ended; and
— notes, including a summary of significant
accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (“ISAs (NZ)”). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards) (the “IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the Group in relation to the review of the Group’s consolidated interim
financial statements, regulatory assurance services, agreed upon procedure engagements and supervisor
reporting. Subject to certain restrictions, partners and employees of our firm may also deal with the Group on
normal terms within the ordinary course of trading activities of the business of the Group. These matters have not
impaired our independence as auditor of the Group. The firm has no other relationship with, or interest in, the
Group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and
on the consolidated financial statements as a whole. The materiality for the consolidated financial statements as a
whole was set at $6,540,000 determined with reference to a benchmark of the Group’s profit before tax. We
chose the benchmark because, in our view, this is a key measure of the Group’s performance.
We agreed with the Board Audit and Risk Committee that we would report to them, misstatements identified
during our audit above $320,000 as well as misstatements below that amount that, in our view, warranted
reporting for qualitative reasons.

69

Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the consolidated financial statements in the current period. We summarise below those matters and our key audit
procedures to address those matters in order that the shareholders as a body may better understand the process
by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely for the
purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not express
discrete opinions on separate elements of the consolidated financial statements
The key audit matter How the matter was addressed in our audit
Provision for impairment of finance receivables
Refer to notes 1, 13 and 23 to the consolidated financial statements.

The provision for impairment of finance
receivables is a key audit matter due to the
financial significance and the inherent
complexity of the Group’s expected credit loss
(“ECL”) models.
Significant judgement and estimates are
required to incorporate forward-looking
information to reflect future economic
conditions.
The collective provision is estimated through
the ECL models using historical data which is
adjusted for forward looking information and
the assigned risk grade or arrears status.
Additionally, management apply judgement in
the determination of provision overlays to
adjust for future market conditions.
The level of judgement involved in
determining the provision for collectively
impaired assets requires us to challenge the
appropriateness of management’s
assumptions.
The provision for individually impaired assets is
based on the application of management
judgement regarding expected future
cashflows, which are inherently uncertain.
Our procedures, amongst others, included:
Assessing the Group’s governance and oversight, including the
continuous reassessment of overall provisioning;
Assessing the Group’s significant accounting policies and
expected credit loss (“ECL”) modelling methodology against the
requirements of the standards and underlying accounting
records;
Testing key controls including the arrears calculations, customer
loan ratings, annual loan reviews, credit risk reviews and data
reconciliations between the ECL models and source systems;
Assessing the model output against actual losses incurred by the
Group;
Challenging the key assumptions, including forward looking
economic assumptions, against external information including
benchmarking management’s estimates to a range of
observable
industry data and market forecasts;
Evaluating individual credit assessments for a sample of ‘rural’
and other ‘corporate’ loans on management’s credit watchlist.
This included inspection of the latest correspondence with the
borrower, assessment of the provision estimates prepared by
credit risk officers, and consideration of the resolution strategy.
We challenged assumptions and assessed collateral values by
comparing them to valuations performed by independent valuers;
and
Assessing the disclosures in the consolidated financial
statements against the requirements of NZ IFRS.
From the procedures performed we consider the Group appropriately
identified and considered the uncertainties in the provision estimates.

70

The key audit matter How the matter was addressed in our audit
Valuation of finance receivables – reverse mortgages
Refer to note 21 of the consolidated financial statements.
The Group’s reverse mortgage portfolio is held
at fair value.
The fair value calculation is based on the
application of management judgement. In
assessing the fair value, the Group
continuously considers evidence of a relevant
active market. In the absence of such a
market, in the current period, the Group
considered changes since loan origination and
expected future cashflows.
The inherent uncertainties include estimated
exits, interest rates and security property
values.

Our procedures over the fair value loan portfolios, amongst others,
included:
Testing key controls over the accuracy of data impacting the fair
value assessment;
Assessing evidence of a relevant active market or observable
inputs; and
Challenging the key assumptions used by the Group in
determining the portfolio’s fair value.
The estimates and assumptions used to determine the valuation of
finance receivables are reasonable, with no evidence of management
bias or influence identified from our procedures.

Operation of IT systems and controls
The Group is reliant on complex IT systems for
the processing and recording of significant
volumes of transactions and other core
banking activity.
For significant financial statement balances,
such as finance receivables and deposits,
where relevant, our audit involves an
assessment of the design of the Group’s
internal control environment. There are some
areas of the audit where we seek to test and
place reliance on IT systems, automated
controls and reporting.
The effective operation of these controls is
dependent upon the Group’s general IT control
environment, which incorporates controls
relevant to IT system changes and
development, IT operations, and developer
and user access.

Our audit procedures, amongst others, included:
Gaining an understanding of business processes, key controls
and IT systems relevant to significant financial statement
balances, including technology services provided by a third party;

Assessing the effectiveness of the IT control environment,
including core banking IT systems, key automated controls and
reporting; and
Evaluating general IT controls relevant to IT system changes and
development, IT operations, and developer and user access.
Where we noted design or operating effectiveness matters relating to
IT system or application controls relevant to our audit, we performed
alternative audit procedures. We also identified and tested mitigating
controls in order to respond to the impact on our overall audit
approach.
We did not identify any material issues or exceptions from those
additional procedures.

Other information
The Directors, on behalf of the Group, are responsible for the other information included in the entity’s Annual
Report. Other information may include the Chairman’s Report, Chief Executive Officer’s Report and disclosures
relating to corporate governance. Our opinion on the consolidated financial statements does not cover any other
information and we do not express any form of assurance conclusion thereon.
The Annual Report is expected to be made available to us after the date of this Independent Auditor's Report. Our
responsibility is to read the Annual Report when it becomes available and consider whether the other information it
contains is materially inconsistent with the consolidated financial statements, or our knowledge obtained in the
audit, or otherwise appear misstated. If so, we are required to report such matters to the Directors.

71

Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the Group, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards;
— implementing necessary internal control to enable the preparation of a consolidated set of financial statements
that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial
statements
Our objective is:
— to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at the
External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/

This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Graeme Edwards.
For and on behalf of

KPMG
Auckland
22 August 2022

---

Disclosure Statement
For the year ended 30 June 2022

P. 2
Contents
Page
General Information...........................................................................................................................................................3
Priority of Creditors’ Claims.............................................................................................................................................3
Guarantee Arrangements...................................................................................................................................................3
Auditor..................................................................................................................................................................................3
Directors...............................................................................................................................................................................4
Directors’ Statements.........................................................................................................................................................6
Consolidated Statement of Comprehensive Income......................................................................................................7
Consolidated Statement of Changes in Equity................................................................................................................8
Consolidated Statement of Financial Position...............................................................................................................9
Consolidated Statement of Cash Flows............................................................................................................................10
Notes to the Financial Statements
1 Financial statements preparation........................................................................................................................12
Performance
2 Segmental analysis.................................................................................................................................................17
3 Net interest income................................................................................................................................................18
4 Net operating lease income...................................................................................................................................19
5 Other income...........................................................................................................................................................19
6 Operating expenses.................................................................................................................................................20
7 Compensation of auditor.......................................................................................................................................20
8 Impaired asset expense..........................................................................................................................................21
9 Taxation....................................................................................................................................................................22
Financial Position
10 Investments............................................................................................................................................................24
11 Derivative financial instruments..........................................................................................................................25
12 Finance receivables................................................................................................................................................27
13 Operating lease vehicles........................................................................................................................................31
14 Borrowings..............................................................................................................................................................31
15 Share capital and dividends..................................................................................................................................32
16 Other reserves........................................................................................................................................................33
17 Other balance sheet items....................................................................................................................................33
18 Related party transactions and balances............................................................................................................35
19 Fair value.................................................................................................................................................................37
Risk Management
20 Enterprise risk management.................................................................................................................................44
21 Credit risk exposure...............................................................................................................................................47
22 Asset quality............................................................................................................................................................51
23 Liquidity risk............................................................................................................................................................57
24 Interest rate risk.....................................................................................................................................................59
25 Concentrations of funding....................................................................................................................................61
Other Disclosures
26 Significant subsidiaries..........................................................................................................................................63
27 Structured Entities.................................................................................................................................................63
28 Capital adequacy....................................................................................................................................................64
29 Insurance business, securitisation, funds management, other fiduciary activities.......................................71
30 Contingent liabilities and commitments.............................................................................................................72
31 Events after reporting date...................................................................................................................................72
Historical Summary of the Financial Statements............................................................................................................73
Amendments to Conditions of Registration....................................................................................................................74
Conditions of Registration.................................................................................................................................................75
Conditions of Registration Non-Compliance...................................................................................................................81
Pending Proceedings..........................................................................................................................................................81
Credit Ratings......................................................................................................................................................................82
Other Material Matters......................................................................................................................................................82
Auditor’s Report..................................................................................................................................................................83

P. 3
General Information
This Disclosure Statement has been issued by Heartland Bank Limited (HBL or the Bank) and its subsidiaries (the Banking Group)
for the year ended 30 June 2022 in accordance with the Registered Bank Disclosure Statements (New Zealand Incorporated
Registered Banks) Order 2014 (as amended) (the Order). The financial statements of the Bank for the year ended 30 June 2022
form part of, and should be read in conjunction with, this Disclosure Statement.
Words and phrases defined by the Order have the same meanings when used in this Disclosure Statement.
Name and address for service
The name of the Registered Bank is Heartland Bank Limited.
The Banking Group consists of the Bank and all of its subsidiaries.
The Bank's address for service is Level 3, 35 Teed Street, Newmarket, Auckland 1023.
The address for service of the ultimate parent, Heartland Group Holdings Limited (HGH), is Level 3, 35 Teed Street, Newmarket,
Auckland 1023.
Details of incorporation
The Bank was incorporated under the Companies Act 1993 on 30 September 2010.
Interests in 5% or more of voting securities of the Bank
NamePercentage held
Heartland Group Holdings Limited100%
Heartland Group Holdings Limited have the ability to appoint 100% of Directors, subject to Reserve Bank of New Zealand (RBNZ)
restrictions and RBNZ Director approval.
Priority of Creditors' Claims
In the event of the Bank becoming insolvent or ceasing business, certain claims set out in legislation are paid in priority to others.
These claims include secured creditors, taxes, certain payments to employees and any liquidator’s costs. After payment of those
creditors, the claims of all other creditors are unsecured and would rank equally, with the exception of holders of subordinated
bonds and notes which rank below all other claims.
Guarantee Arrangements
As at the date this Disclosure Statement was signed, no material obligations of the Bank were guaranteed.
Auditor
KPMG
KPMG Centre
18 Viaduct Harbour Avenue
Auckland 1010

P. 4
Directors
All Directors of the Bank reside in New Zealand. Communications to the Directors can be sent to Heartland Bank Limited, Level 3,
35 Teed Street, Newmarket, Auckland 1023.
There have been no changes in the composition of the Board of Directors of the Bank for the year ended 30 June 2022.
The Directors of the Bank and their details at the time this Disclosure Statement was signed were:
Chairman – Board of Directors
Name: Bruce Robertson IrvineQualifications: BCom, LLB, FCA, CFInstD
Type of Director: Independent Non-Executive DirectorOccupation: Company Director
External Directorships:
Air Rarotonga Limited, Amaia Day Spa (Tonga) Limited, Amaia Luxury Spa Limited, Amyes Road Limited (in liquidation), B R Irvine
Limited, Blackbyre Horticulture Limited, Bowdens Mart Limited, MG Sustainable Operations Limited, Chambers @151 Limited,
Clipper Investments (2002) Limited, Cockerill and Campbell (2007) Limited, Embassy Hotels Limited, GZ Capital Limited, GZ NZ
Limited, GZ RES Limited, Hansons Lane International Holdings Limited, Hawling Holdings Limited, House of Travel ESP Trustee
Limited, House of Travel Holdings Limited, J.S. Ewers Limited, Kaipaki Holdings Limited, Kaipaki Properties Limited, Lake Angelus
Holdings Limited, Lamanna Bananas (NZ) Limited, Lamanna Premier Group Pty Limited, Lamanna Limited, Market Fresh Wholesale
Limited, Market Gardeners Limited, MG Group Holdings Limited, MG Marketing Limited, MG New Zealand Limited, Monarch
Hotels Limited, Noblesse Oblige Limited, Paradise Islands Limited, Phimai Holdings Limited, Quitachi Limited, Scenic Hotels
(Karapiro) Limited, Scenic Hotels (Hamilton) Limited, Scenic Circle Convention Services Limited, Scenic Hotel (Haast) Limited,
Scenic Circle (Napier) Limited, Scenic Hotel Group Limited, Scenic Hotels (Ashburton) Limited, Scenic Hotels (International)
Limited, Scenic Circle MLC Café & Bar Limited, Skope Industries Limited, Southland Produce Markets Limited, Stark Holdings (NZ)
Limited, Wavell Resources Limited, Scenic Circle (Rotorua) Limited, Scenic Circle (Queenstown) Limited, Scenic Hotels Limited,
Abalon Investments Limited, Airedale Developments (Auckland) Limited, Scenic Hotels (Tonga) Limited, Waiho Investments
Limited, Scenic Circle Hotels Management Services Limited, Scenic Circle Punakaiki Rocks Hotel Limited, Scenic Hotel Collection
New Zealand Limited, Scenic Hotels (Auckland) Limited, Scenic Hotels (Niue) Limited, Scenic Hotels (Kaikoura) Limited, Heartland
Hotels Limited, Scenic (Franz Josef) Limited, Scenic Circle (Airedale) Limited, Scenic Circle (Bay Of Islands) Limited, Platinum Hotels
Limited, Scenic Aviation Limited, Scenic Circle (Bay Of Plenty) Limited, Scenic Circle (Blenheim) Limited, Karma Finance Limited,
Scenic Circle Hotels (Dunedin) Limited, Refined Hotels Limited, Scenic Hospitality Services Limited, Scenic Circle Glacier Country
Hotel Limited, Scenic Circle (North Island) Limited, Scenic Hotels Technology Limited, Scenic Circle (Rotorua Lakes) Limited, Ezibed
(2022) Limited, Mainstay International Hotels (NZ)(2022) Limited, Golden Chain (NZ) Limited, Mainstay International Hotels (2022)
Limited, Mitchell Corp New Zealand (2022) Limited, Te Kaikoura Investments Limited, MLC Scenic Limited, Wagstaff Holdings
Limited, Heartland PIE Fund Limited.
Name: Jeffrey Kenneth GreensladeQualifications: LLB
Type of Director: Non-Independent Non-Executive DirectorOccupation: Chief Executive Officer of Heartland Group Holdings
External Directorships:
Heartland Australia Group Pty Limited, Heartland Australia Holdings Pty Limited, Australian Seniors Finance Pty Limited, ASF
Custodians Pty Limited, Heartland Group Holdings Limited, Henley Family Investments Limited, StockCo Holdings 2 Pty Limited,
StockCo Australia Management Pty Limited.
Name: Edward John HarveyQualifications: BCom, CA, CFInstD
Type of Director: Independent Non-Executive DirectorOccupation: Company Director
External Directorships:
KMD Brands Limited, Napier Port Holdings Limited, Pomare Investments Limited, Port of Napier Limited.
Name: Geoffrey Thomas Ricketts CNZMQualifications: LLB (Hons), LLD
Type of Director: Non-Independent Non-Executive DirectorOccupation: Company Director
External Directorships:
Heartland Group Holdings Limited, Janmac Capital Limited, Maisemore Enterprises Limited, MCF2 Message4U Limited, MCF 10
Limited, MCF2 (Fund 1) Limited, MCF2A General Partner Limited, MCF2 GP Limited, MCF3 GP Limited, MCF3B General Partner
Limited, MCF3A General Partner Limited, MCF2 FFF-GK Limited, MCF3 Cook Limited, MCF3 TEG Limited, MCF3 Squiz Limited, MC
Medical Properties Limited, Mercury Capital No.1 Fund Limited, Mercury Capital No. 1 Trustee Limited, Mercury Medical Holdings
Limited, New Zealand Catholic Education Office Limited, NZCEO Finance Limited, O & E Group Services Limited, Oceania and
Eastern Finance Limited, Oceania and Eastern Group Funds Limited, Oceania and Eastern Holdings Limited, Oceania and Eastern
Limited, Oceania and Eastern Securities Limited, Oceania North Limited, Oceania Securities Limited, Quartet Equities Limited,

P. 5
Directors (continued)
MCF3 RE.Group Limited, MCF11 Limited, MCF3 Resourceco Limited, MCF3 Green Limited, MCF E&P Holdco Limited, MCF3 Amplify
Limited, MCF3 Architectus Limited.
Name: Kathryn MitchellQualifications: BA, CMInstD
Type of Director: Independent Non-Executive DirectorOccupation: Company Director
External Directorships:
Chambers@151 Limited, Christchurch International Airport Limited, Farmright Limited, Firsttrax Limited, Helpings Hands Holdings
Limited, Link Engine Management Limited, Morrison Horgan Limited, The New Zealand Merino Company Limited, Heartland
Group Holdings Limited.
Name: Shelley Maree RuhaQualifications: BCom, DipBank
Type of Director: Independent Non-Executive DirectorOccupation: Company Director
External Directorships:
Analey Holdings Limited, IT & Business Consulting Limited, New Zealand Rural Land Management Limited, Partners Group
Holdings Limited, Partners Life Limited, 9 Spokes International Limited, Taxgift Limited, Hobson Wealth Holdings Limited, Hobson
Wealth Partner’s Limited, Paysauce Limited.
Conflicts of interest policy
All Directors are required to disclose to the Board any actual or potential conflicts of interest which may exist or is thought to exist
upon appointment and are required to keep these disclosures up to date. The details of each disclosure made by a Director to the
Board must be entered in the Interests Register.
Directors are required to take any necessary and reasonable measures to try to resolve the conflict and comply with the
Companies Act 1993 by disclosing interests and restrictions on voting. Any Director with a material personal, professional or
business interest in a matter being considered by the Board must declare their interest and, unless the Board resolves otherwise,
may not be present during the boardroom discussions or vote on the relevant matter.
Interested transactions
There have been no transactions between the Bank or any member of the Banking Group and any Director or immediate relative
or close business associate of any Director which either has been entered into on terms other than those which would in the
ordinary course of business of the Bank or any member of the Banking Group be given to any other person of like circumstances
or means, or could be reasonably likely to influence materially the exercise of the Directors' duties.
Audit committee composition
Members of the Bank's Audit Committee as at the date of this Disclosure Statement are as follows:
Edward John Harvey (Chairperson)Independent Non-Executive Director
Bruce Robertson IrvineIndependent Non-Executive Director
Geoffrey Thomas Ricketts
Shelley Maree Ruha
Non-Independent Non-Executive Director
Independent Non-Executive Director

P. 6
Directors' Statements
Each Director of the Bank states that he or she believes, after due enquiry, that:
1.As at the date on which this Disclosure Statement is signed:
(a)the Disclosure Statement contains all the information that is required by the Order; and
(b) the Disclosure Statement is not false or misleading.
2.During the year ended 30 June 2022:
(a)the Bank complied with all Conditions of Registration applicable during the period;
(b) credit exposures to connected persons were not contrary to the interests of the Banking Group; and
(c)the Bank had systems in place to monitor and control adequately material risks of the Banking Group, including
credit risk, concentration of credit risk, interest rate risk, currency risk, equity risk, liquidity risk, operational risk
and other business risks, and that those systems were being properly applied.
This Disclosure Statement is dated 22 August 2022 and has been signed by all the Directors.
B. R. Irvine (Chair)G. T. Ricketts
J. K. GreensladeK. Mitchell
E. J. HarveyS. M. Ruha

P. 7
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2022
$000'sNote
June 2022June 2021
Interest income
3
275,770272,562
Interest expense
3
66,20573,753
Net interest income209,565198,809
Operating lease income
4
5,2845,004
Operating lease expense
4
3,3833,149
Net operating lease income1,9011,855
Lending and credit fee income6,9436,455
Other income
5
24,8606,696
Net operating income243,269213,815
Operating expenses
6
96,203100,852
Profit before impaired asset expense and income tax147,066112,963
Fair value (loss)/gain on investments(315)215
Impaired asset expense
8
14,69214,579
Profit before income tax132,05998,599
Income tax expense
9
36,06827,090
Profit for the year95,99171,509
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss, net of income tax:
Effective portion of change in fair value of derivative financial instruments6,5408,928
Movement in fair value reserve(712)(5,646)
Items that will not be reclassified to profit or loss, net of income tax:
Movement in defined benefit reserve(171)-
Other comprehensive income(473)-
Other comprehensive income for the year, net of income tax5,1843,282
Total comprehensive income for the year101,17574,791
Total comprehensive income for the year is attributable to the owner of the Bank.
The notes to the financial statements form an integral part of, and should be read in conjunction with, these consolidated
financial statements.

P. 8
Consolidated Statement of Changes in Equity
For the year ended 30 June 2022
June 2022June 2021
$000's
Note
Share
CapitalReserves
Retained
Earnings
Total
Equity
Share
CapitalReserves
Retained
Earnings
Total
Equity
Balance at beginning of year553,23975587,834641,828553,239(2,527)46,325597,037
Total comprehensive income for
the year
Profit for the year--95,99195,991--71,50971,509
Other comprehensive (loss),
net of income tax
16-5,657(473)5,184-3,282-3,282
Total comprehensive income for
the year
-5,65795,518101,175-3,28271,50974,791
Contributions by and distributions
to owner
Dividend to Heartland Group
Holdings Limited
15--(35,500)(35,500)--(30,000)(30,000)
Total transactions with owner--(35,500)(35,500)--(30,000)(30,000)
Balance at end of the year553,2396,412147,852707,503553,23975587,834641,828
The notes to the financial statements form an integral part of, and should be read in conjunction with, these consolidated financial
statements.

P. 9
Consolidated Statement of Financial Position
As at 30 June 2022
$000's
NoteJune 2022June 2021
Assets
Cash and cash equivalents221,469112,903
Investments10275,714358,975
Investment properties11,83211,832
Derivative financial instruments1144,48714,111
Due from related parties181,540146
Finance receivables123,762,2313,213,593
Finance receivables - reverse mortgages12721,264601,505
Operating lease vehicles1315,16110,865
Right of use assets1713,66015,654
Other assets1713,33814,822
Intangible assets1758,41852,831
Deferred tax asset915,53812,251
Total assets5,154,6524,419,488
Liabilities
Deposits143,597,1443,219,522
Other borrowings14749,478502,885
Due to related parties181,5353,210
Lease liabilities1715,72617,780
Tax liabilities22,4797,556
Derivative financial instruments116,3354,789
Trade and other payables1754,45221,918
Total liabilities4,447,1493,777,660
Equity
Share capital15553,239553,239
Retained earnings and other reserves154,26488,589
Total equity707,503641,828
Total equity and liabilities5,154,6524,419,488
Total interest earning and discount bearing assets4,918,2614,215,116
Total interest and discount bearing liabilities4,312,1803,704,130
The notes to the financial statements form an integral part of, and should be read in conjunction with, these consolidated
financial statements.

P. 10
Consolidated Statement of Cash Flows
For the year ended 30 June 2022
$000's
NoteJune 2022June 2021
Cash flows from operating activities
Interest received232,601236,081
Operating lease income received3,9135,046
Lending, credit fees and other income received11,7408,431
Operating inflows248,254249,558
Interest paid(87,131)(88,635)
Payments to suppliers and employees(47,169)(86,261)
Taxation paid(26,616)(27,518)
Operating outflows(160,916)(202,414)
Net cash flows from operating activities before changes in operating assets and liabilities87,33847,144
Proceeds from sale of operating lease vehicles4,4826,821
Purchase of operating lease vehicles(10,758)(1,788)
Net movement in finance receivables(636,981)(136,202)
Net movement in deposits376,052(43,587)
Net movement in related party balances(3,069)(3,399)
Net cash flows (applied to) operating activities
1
(182,936)(131,011)
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets(11,889)(6,520)
Net increase in investments82,94624,215
Total cash from investing activities71,05717,695
Net cash flows from investing activities71,05717,695
Cash flows from financing activities
Net increase in wholesale funding258,127152,783
Total cash provided from financing activities258,127152,783
Dividends paid15(35,500)(30,000)
Payment of lease liabilities(2,182)(2,027)
Total cash (applied to) financing activities(37,682)(32,027)
Net cash flows from financing activities220,445120,756
Net increase in cash held108,5667,440
Opening cash and cash equivalents112,903105,463
Closing cash and cash equivalents221,469112,903
1
Cash flows from operating activities do not include cash flows from wholesale funding which are included as part of financing
activities.
The notes to the financial statements form an integral part of, and should be read in conjunction with, these consolidated
financial statements.

P. 11
Consolidated Statement of Cash Flows
For the year ended 30 June 2022
Reconciliation of profit after tax to net cash flows from operating activities
$000's
NoteJune 2022June 2021
Profit for the year95,99171,509
Add/(less) non-cash items:
Depreciation and amortisation expense10,29414,293
Depreciation on lease vehicles133,1032,801
Capitalised net interest income and fee income(41,863)(34,555)
Impaired asset expense814,69214,579
Investment fair value movement315(215)
Other non-cash items(17,490)(23,210)
Total non-cash items (30,949)(26,307)
Add/(less) movements in operating assets and liabilities:
Finance receivables(636,981)(136,202)
Operating lease vehicles(6,276)5,033
Other assets(1,780)2,884
Current tax 14,923(3,715)
Derivative financial instruments(23,002)(122)
Deferred tax(3,287)3,076
Deposits376,052(43,587)
Other liabilities32,373(3,580)
Total movements in operating assets and liabilities(247,978)(176,213)
Net cash flows applied to operating activities(182,936)(131,011)
The notes to the financial statements form an integral part of, and should be read in conjunction with, these consolidated
financial statements.

P. 12
Notes to the Financial Statements
For the year ended 30 June 2022
1 Financial statements preparation
Reporting entity
The financial statements presented are the consolidated financial statements comprising HBL and the Banking Group. Refer Note
26 – Significant subsidiaries for further details.
As at 30 June 2022, the Bank is a company incorporated in New Zealand under the Companies Act 1993, a registered bank under
the Reserve Bank of New Zealand Act 1989 and a Financial Market Conduct (FMC) reporting entity for the purposes of the
Financial Markets Conduct Act 2013.
Basis of preparation
The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand ( NZ
GAAP) and with the requirements of the Financial Markets Conduct Act 2013. The financial statements comply with New Zealand
equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards as
appropriate for profit-oriented entities, and the Registered Bank Disclosure Statement (New Zealand Incorporated Registered
Banks) Order 2014 (as amended) (the Order). The financial statements also comply with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board.
The financial statements are presented in New Zealand dollars which is the Banking Group's functional and presentation currency.
Unless otherwise indicated, amounts are rounded to the nearest thousand dollars.
The financial statements have been prepared on a going concern basis after considering the Banking Group's funding and liquidity
position.
The accounting policies adopted have been applied consistently throughout the periods presented in these financial statements.
Certain comparative balances have been reclassified to align with the presentation used in the current financial year. These
reclassifications have no impact on the overall financial performance or financial position for the comparative year.
Basis of measurement
The financial statements have been prepared on the basis of historical cost, except for certain financial instruments and
investment properties, which are measured at their fair values as identified in the accounting policies set out in the accompanying
notes to the financial statements.
Principles of consolidation
The consolidated financial statements of the Banking Group incorporate the assets, liabilities and results of all controlled entities.
Controlled entities are all entities in which the Bank is exposed to, or has rights to, variable returns from its involvement with the
entities and has the ability to affect those returns through its power over the entities. Intercompany transactions, balances and
any unrealised income and expense (except for foreign currency transaction gains or losses) between controlled entities are
eliminated.
Assets and liabilities in a transactional currency that is not the New Zealand dollar, are translated at the exchange rates ruling at
balance date. Revenue and expense items are translated at the average rate at the balance date. Exchange differences are taken
to the consolidated statement of comprehensive income.

P. 13
1 Financial statements preparation (continued)
Changes in accounting standards
Accounting standards issued and effective
There have been no changes to accounting policies or new or amended standards that are issued and effective that are expected
to have a material impact on the Banking Group.
Accounting standards issued not yet effective
The final version of NZ IFRS 17 Insurance Contracts was issued in August 2017 and is applicable to general and life insurance
contracts. The standard will be effective for the Banking Group’s reporting for the financial year ending 30 June 2024, including 30
June 2023 comparatives.
MARAC Insurance Limited (MIL), a subsidiary of HBL, ceased writing insurance policies in 2020 with the periodic policies expected
to expire in 2025.
Other amendments to existing standards that are not yet effective are not expected to have a material impact on the Banking
Group.
Estimates and judgements
The preparation of the Banking Group’s consolidated financial statements requires the use of estimates and judgements. This
note provides an overview of the areas that involve a higher degree of judgement or complexity. Detailed information about each
of these estimates and judgements is included in the relevant notes together with the basis of calculation for each affected item
in the financial statements.
Provisions for impairment - The effect of credit risk is quantified based on the Banking Group's best estimate of future cash
repayments and proceeds from any security held or by reference to risk profile groupings, historical loss data and forward-
looking information. Refer to Note 8 - Impaired asset expense, and Note 12 - Finance receivables for further details.
Fair value of reverse mortgages - Fair value is quantified by the transaction price and the Banking Group’s subsequent best
estimate of the risk profile of the reverse mortgage portfolio. Refer to Note 19 - Fair value for further details.
Goodwill - Determining the fair value of assets and liabilities of acquired businesses requires the Banking Group to exercise
judgement. The carrying value of goodwill is tested annually for impairment, refer to Note 17 - Other balance sheet items.
Assumptions made at each reporting date (e.g. the calculation of the provision for impairment and fair value adjustments) are
based on best estimates as at that date. Although the Banking Group has internal controls in place to ensure that estimates can
be reliably measured, actual amounts may differ from these estimates. The estimates and judgements used in the preparation of
the Banking Group’s financial statements are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the entity. Revisions to accounting estimates are
recognised in the reporting period in which the estimates are revised and in any future periods affected.
COVID-19 Pandemic - Impact on Estimates and Judgements
The COVID-19 pandemic resulted in the Banking Group adopting an economic overlay for expected credit losses (ECL) to its
portfolios as at 30 June 2020 of pre-tax $9.6 million in response to the uncertain but potential economic impact of COVID-19 on
HBL's borrowers (COVID Overlay). The COVID Overlay was sized based on a range of techniques including stress testing,
benchmarking, scenario analysis and expert judgement.
Whilst economic uncertainty remains, credit risk factors arising from the impact of COVID-19 are now apparent. Consequently the
COVID Overlay has been released in full and it has been considered appropriate to create an economic overlay of $8.0 million as
at 30 June 2022, resulting in a net $1.6 million release to profit or loss.

P. 14
1 Financial statements preparation (continued)
COVID-19 Pandemic - Impact on Estimates and Judgements (continued)
The accounting judgement that is most impacted by the economic overlay is the ECL on finance receivables at amortised cost. The
Banking Group measures the allowance for ECL using an impairment model in compliance with NZ IFRS 9 Financial Instruments.
Financial assets and liabilities
Financial Assets
Financial assets are classified based on:
The business model within which the assets are managed; and
Whether the contractual cash flows of the instrument represent solely payment of principal and interest (SPPI).
The Banking Group determines the business model at the level that reflects how groups of financial assets are managed. When
assessing the business model, the Banking Group considers factors including how performance and risks are managed, evaluated
and reported and the frequency and volume of, and reason for sales in previous periods.
Financial assets are classified into the following measurement categories:
Financial Assets Measurement Category Note
Bank bonds and floating rate notesFair value through other comprehensive income (FVOCI)10
Public sector securities and corporate bondsFVOCI10
Local authority stockFVOCI10
Equity investmentsFair value through profit or loss (FVTPL) and FVOCI10
Finance receivables – reverse mortgagesFVTPL12
Finance receivablesAmortised cost12
Financial assets measured at amortised cost
Financial assets are measured at amortised cost if they are held within a business model whose objective is achieved through
holding the financial asset to collect contractual cash flows which represent SPPI.
Financial assets at amortised cost are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest rate method.
Financial assets measured at FVOCI
Financial assets are measured at FVOCI if they are held within a business model whose objective is achieved both through
collecting contractual cash flows which represent SPPI or selling the financial asset.
Financial assets at FVOCI are measured at fair value with unrealised gains and losses recognised in other comprehensive income
except for interest income, impairment charges and foreign exchange gains and losses, which are recognised in profit or loss.

P. 15
1 Financial statements preparation (continued)
Financial assets and liabilities (continued)
Financial Assets (continued)
Financial assets measured at FVTPL
Financial assets are measured at FVTPL if:
They are held within a business model whose objective is achieved through selling or repurchasing the financial asset in the
near term, or forms part of a portfolio of financial instruments that are managed together and for which there is evidence of
short-term profit taking; or
They are designated at FVTPL upon initial recognition to eliminate or reduce an accounting mismatch.
Financial assets at FVTPL are measured at fair value with subsequent changes in fair value recognised in profit or loss.
Financial Liabilities
Financial liabilities are classified into the following measurement categories:
Those to be measured at amortised cost;
Those to be measured at FVTPL.
Financial liabilities measured at amortised cost
Financial liabilities are measured at amortised cost if they are not held for trading or designated at FVTPL.
Financial liabilities measured at amortised cost are accounted for using the effective interest rate method.
Financial liabilities measured at FVTPL
Financial liabilities are measured at FVTPL if:
They are held for trading whose principal objective is achieved through selling or repurchasing the financial liability in the
near term, or forms part of a portfolio of financial instruments that are managed together and for which there is evidence of
short-term profit taking; or
They are designated at FVTPL upon initial recognition to eliminate or reduce an accounting mismatch.
Financial liabilities at FVTPL are measured at fair value with subsequent changes in fair value recognised in profit or loss.
Further details of the accounting policy for each category of financial asset or financial liability mentioned above is set out in the
note for the relevant item.
The Banking Group’s policies for determining the fair value of financial assets and financial liabilities are set out in Note 19 - Fair
value.
Recognition
The Banking Group initially recognises finance receivables and borrowings on the date that they are originated. All other financial
assets and liabilities (including assets and liabilities designated at FVTPL) are initially recognised on the trade date at which the
Banking Group becomes a party to the contractual provisions of the instrument.

P. 16
1 Financial statements preparation (continued)
Derecognition
The Banking Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks
and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or
retained by the Banking Group is recognised as a separate asset.
The Banking Group enters into transactions whereby it transfers assets recognised on its consolidated statement of financial
position, but retains either all risks or rewards of the transferred assets or a portion of them. If all or substantially all risks and
rewards are retained, then the transferred assets are not derecognised from the consolidated statement of financial position.
Transfers of assets with the retention of all or substantially all risks and rewards include, for example, securitised assets and
repurchase transactions.
Financial liabilities are derecognised when the obligation is discharged, cancelled or expires. Where an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially
modified, the exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability,
with the difference in the respective carrying amounts recognised in profit or loss.
Offsetting financial instruments
The Banking Group offsets financial assets and financial liabilities and reports the net balance in the balance sheet where there is
currently a legally enforceable right to set off and there is an intention to settle on a net basis or to realise the asset and settle the
liability simultaneously.

P. 17
Performance
2 Segmental analysis
Segment information is presented in respect of the Banking Group's operating segments which are those used for the Banking
Group's management and internal reporting structure.
Operating segments
The Banking Group operates within New Zealand and comprises the following main operating segments:
MotorMotor vehicle finance.
Reverse mortgagesReverse mortgage lending in New Zealand. Refer to Note 21 - Credit risk exposure for details of this
product.
Personal lendingTransactional, home loans and personal loans to individuals.
BusinessTerm debt, plant and equipment finance, commercial mortgage lending and working capital solutions for
small-to-medium sized businesses.
RuralSpecialist financial services to the farming sector primarily offering livestock finance, rural mortgage
lending, seasonal and working capital financing, as well as leasing solutions to farmers.
Certain operating expenses, such as premises, IT and support centre costs are not allocated to operating segments and are
included in Other. Finance receivables are allocated across the operating segments as assets and liabilities are managed
centrally and therefore are not allocated across the operating segments.
The Banking Group's operating segments are different from the industry categories detailed in Note 21 - Credit risk exposure. The
operating segments are primarily categorised by sales channel, whereas Note 21 - Credit risk exposure categorises exposures
based on credit risk concentrations.
ReversePersonal
$000's
MotorMortgagesLendingBusinessRuralOtherTotal
June 2022
Net interest income
69,73029,95710,21870,60229,460(402)209,565
Net other income
3,3262,5831,5622,67973922,81533,704
Net operating income73,05632,54011,78073,28130,19922,413243,269
Operating expenses3,7924,4856,4179,3583,03869,11396,203
Profit/(loss) before impaired asset expense
and income tax
69,26428,0555,36363,92327,161(46,700)147,066
Fair value (loss) on investments-----(315)(315)
Impaired asset expense/(benefit)1,481-(877)11,8312,257-14,692
Profit before income tax67,78328,0556,24052,09224,904(47,015)132,059
Income tax expense-----36,06836,068
Profit/(loss) for the year67,78328,0556,24052,09224,904(83,083)95,991
Total assets1,382,367721,264332,7831,387,352687,232643,6545,154,652
Total liabilities4,447,149

P. 18
2 Segmental analysis (continued)
ReversePersonal
$000's
MotorMortgagesLendingBusinessRuralOtherTotal
June 2021
Net interest income65,82923,09813,64866,11230,579(457)198,809
Net other income3,3432,3692,7672,9631,5811,98315,006
Net operating income69,17225,46716,41569,07532,1601,526213,815
Operating expenses3,7874,3976,24111,3402,12472,963100,852
Profit/(loss) before impaired asset expense
and income tax
65,38521,07010,17457,73530,036(71,437)112,963
Fair value gain on investments-----215215
Impaired asset expense5,298-1,9775,6551,649-14,579
Profit/(loss) before income tax60,08721,0708,19752,08028,387(71,222)98,599
Income tax expense-----27,09027,090
Profit/(loss) for the year60,08721,0708,19752,08028,387(98,312)71,509
Total assets1,287,978601,505137,9101,225,710586,318580,0674,419,488
Total liabilities3,777,660
3 Net interest income
Policy
Interest income and expense on financial instruments is measured using the effective interest rate method that discounts the
financial instruments' future cash flows to their present value and allocates the interest income or expense over the life of the
financial instrument. The effective interest rate is established on initial recognition of the financial assets or liabilities and is not
subsequently revised. For financial instruments at amortised cost, the calculation of the effective interest rate includes all yield
related fees and commissions paid or received that are an integral part of the underlying financial instrument.
$000's
June 2022June 2021
Interest income
Cash and cash equivalents
805117
Investments
5,1566,979
Finance receivables
230,514231,659
Finance receivables - reverse mortgages
39,29533,807
Total interest income275,770272,562
Interest expense
Retail deposits
45,38755,295
Other borrowings
20,72714,935
Net interest expense on derivative financial instruments
913,523
Total interest expense66,20573,753
Net interest income 209,565198,809

P. 19
4 Net operating lease income
Policy
As a lessor, the Banking Group retains substantially all the risks and rewards incidental to ownership of the assets and therefore
classifies the leases as operating leases. Rental income and expense from operating leases is recognised on a straight-line basis
over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised on a straight-line basis over the lease term. Profits on the sale of operating
lease assets are included as part of operating lease income. Current year depreciation and losses on the sale of operating lease
assets are included as part of operating lease expenses. The leased assets are depreciated over their useful lives on a basis
consistent with similar assets.
$000's
June 2022June 2021
Operating lease income
Lease income
4,1613,908
Gain on disposal of lease assets
1,1231,096
Total operating lease income5,2845,004
Operating lease expense
Depreciation on lease assets
3,1032,801
Direct lease costs
280348
Total operating lease expense3,3833,149
Net operating lease income1,9011,855
5 Other income
Policy
Rental income from investment properties
Rental income from investment properties is recognised on a straight-line basis over the term of the relevant lease.
Insurance income
Insurance premium income and commission expense are recognised in profit or loss from the date of attachment of the risk over
the period of the insurance contract. Claim expense is recognised in the profit or loss on an accrual basis once our liability to the
policyholder has been confirmed under the terms of the contract.
$000's
June 2022June 2021
Rental income from investment properties8331,055
Insurance income
6641,096
Gain on sale of investments
-157
Other income
6,6244,211
Fair value gain on derivative financial instruments
16,723-
FX gain / (loss)
16177
Total other income24,8606,696

P. 20
6 Operating expenses
Policy
Operating expenses are recognised as the underlying service is rendered or over a period in which an asset is consumed or a
liability is incurred.
$000's
June 2022June 2021
Personnel expenses53,82657,036
Directors' fees
542676
Superannuation
1,045979
Depreciation - property, plant and equipment
2,3422,883
Legal and professional fees
1,6972,110
Advertising and public relations
2,8143,972
Depreciation - right of use asset
2,1222,123
Technology services
9,0146,908
Telecommunications, stationary and postage
1,4921,610
Customer acquisition costs
2,4192,123
Amortisation of intangible assets
5,8309,285
Other operating expenses
1
13,06011,147
Total operating expenses96,203100,852
1
Other operating expenses include compensation of auditor which is disclosed in Note 7.
7 Compensation of auditor
$000's
June 2022June 2021
Audit and review of the financial statements
1
593599
Other assurance services paid to auditor
2
2020
Total compensation of auditor613619
1
Audit and review of the financial statements includes fees paid for both the audit of the annual financial statements and review
of interim financial statements.
2
Other assurance related services paid to the auditor comprise regulatory assurance services, trust deed reporting and registry
audits.

P. 21
8 Impaired asset expense
Policy
Impairment of finance receivables
At each reporting date, the Banking Group applies a three stage approach to measuring ECL to finance receivables not carried at
fair value. The ECL model assesses whether there has been a significant increase in credit risk since initial recognition.
The ECL model is a forward looking model where impairment allowances are recognised before losses are actually incurred. On
initial recognition, an impairment allowance is required, based on events that are possible in the next 12 months.
Assets may migrate between the following stages based on their change in credit quality:
Stage 1 - 12 months ECL (past due 30 days or less)
Where there has been no evidence of increased credit risk since initial recognition, and finance receivables are not credit impaired
upon origination, the portion of the lifetime ECL associated with the probability of default events occurring within the next 12
months is recognised.
Stage 2 - Lifetime ECL not credit impaired (greater than 30 but less than 90 days past due)
Where there has been a significant increase in credit risk.
Stage 3 - Lifetime ECL credit impaired (90 days past due or more)
Objective evidence of impairment, so are considered to be in default or otherwise credit impaired.
In determining whether credit risk has increased all available information relevant to the assessment of economic conditions at
the reporting date are taken into consideration. To do this the Banking Group considers its historical loss experience and adjusts
this for current observable data. In addition to this the Banking Group uses reasonable and supportable forecasts of future
economic conditions including experienced judgement to estimate the amount of an expected impairment loss. Future economic
conditions consider macroeconomic factors such as unemployment, interest rate, gross domestic product, and inflation, and
requires an evaluation of both the current and forecast direction of the economic cycle. The methodology and assumptions
including any forecasts of future economic conditions are reviewed regularly as incorporating forward-looking information
increases the level of judgement as to how changes in these macroeconomic factors will affect the ECL.
The calculation of expected credit loss is modelled for portfolios of like assets. For portfolios which are either new or too small to
model, judgement is used to determine impairment provisions.
For assets that are individually assessed for ECL, the allowance for ECL is calculated directly as the difference between the
defaulted assets carrying value and the recoverable amount (being the present value of expected future cash flows, including cash
flows from the realisation of collateral or guarantees, where applicable).

P. 22
8 Impaired asset expense (continued)
$000's
June 2022June 2021
Non-securitised
Individually impaired asset expense
10,7829,131
Collectively impaired asset expense
3,9805,606
Total non-securitised impaired asset expense14,76214,737
Securitised
Collectively impaired asset expense
(70)(158)
Total securitised impaired asset expense(70)(158)
Total
Individually impaired asset expense
10,7829,131
Collectively impaired asset expense
3,9105,448
Total impaired asset expense14,69214,579
The Banking Group’s models for estimating ECL for each of its portfolios are based on the historic credit experience of those
portfolios. The models assume that economic conditions (such as Gross Domestic Product (GDP) growth, unemployment rates,
and house price index forecasts) remain static over time. If the Banking Group forecasts that economic conditions may change in
the foreseeable future, the Banking Group applies judgement to determine whether the modelled output should be subject to an
economic overlay. Judgement is required to establish clear correlation between key economic indicators and the credit
performance of the Group’s unique portfolios.
9 Taxation
Policy
Income tax
Income tax expense for the year comprises current tax and movements in deferred tax balances, including any adjustment
required for prior years' tax expense. Income tax expense is recognised in profit and loss except to the extent that it relates to
items recognised directly in other comprehensive income, in which case it is recognised in equity or other comprehensive income.
Current tax
Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to the tax payable or receivable in respect of previous years. Current tax for
current and prior years is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying
amounts of assets and liabilities for accounting purposes and the amounts used for taxation purposes. As required by NZ IAS 12
Income Taxes, a deferred tax asset is recognised only to the extent that it is probable that a future taxable profit will be available
to realise the asset.
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of GST. As the Banking Group is predominantly involved in providing financial
services, only a proportion of GST paid on inputs is recoverable. The non-recoverable proportion of GST is treated as an expense
or, if relevant, as part of the cost of acquisition of an asset.

P. 23
9 Taxation (continued)
Income tax expense
$000's
June 2022June 2021
Income tax recognised in profit or loss
Current tax
Current year
40,10424,823
Adjustments for prior year
(748)(483)
Deferred tax
Current year
(2,895)2,573
Adjustments for prior year
(393)177
Total income tax expense recognised in profit or loss36,06827,090
Income tax recognised in other comprehensive income
Current tax
Derivatives at fair value reserve
(5,271)(2,197)
Fair value movements of cash flow hedge
7,5373,457
Total income tax expense recognised in other comprehensive income2,2661,260
Reconciliation of effective tax rate
Profit before income tax132,05998,599
Prima facie tax @ 28%
36,97627,607
Adjusted tax effect of items not taxable/deductible
232(211)
Adjustments for prior year
(1,140)(306)
Total income tax expense36,06827,090
Deferred tax assets comprise the following temporary differences:
$000's
June 2022June 2021
Employee entitlements1,2341,009
Share based payment
501202
Provision for impairment
14,17614,305
Intangibles and property, plant and equipment
(2,972)(3,800)
Deferred acquisition costs
(196)(475)
Operating lease vehicles
680479
Other temporary differences
2,116531
Total deferred tax assets15,53812,251
Opening balance of deferred tax assets12,25115,327
Movement recognised in profit or loss
3,287(3,076)
Closing balance of deferred tax assets15,53812,251

P. 24
Financial Position
10 Investments
Policy
Investments are classified into one of the following categories:
Fair value through profit or loss
Investments under this category include equity investments and are measured at fair value plus transaction costs. Changes in fair
value of these investments are recognised in profit or loss in the period in which they occur.
Fair value through other comprehensive income
Investments under this category include bank bonds, floating rate notes, local authority stock, public securities, corporate bonds
and equity investments. These are initially measured at fair value, including transaction costs, and subsequently carried at fair
value. Changes in fair value of these investments are recognised in other comprehensive income and presented within the fair
value reserve.
Amortised cost
Investments under this category include bank deposits and are measured using effective interest rate method. They are held to
collect contractual cash flows that are solely payments of principal and interest on the principal amount outstanding.
$000's
June 2022June 2021
Bank deposits, bank bonds and floating rate notes261,258351,614
Public sector securities and corporate bonds
12,9535,543
Equity investments
1,5031,818
Total investments275,714358,975
Refer to Note 19 - Fair value for details of the split between investments measured at fair value through profit or loss, fair value
through other comprehensive income and amortised cost.

P. 25
11 Derivative financial instruments
Policy
The Banking Group uses derivatives for risk management purposes. Derivatives held for risk management purposes include
hedges that either meet the hedge accounting requirements set out in NZ IAS 39, or economic hedges not placed into an
accounting hedge relationship.
Derivatives are recognised at their fair value, with the derivatives being carried as assets when their fair value is positive and as
liabilities when their fair value is negative.
A hedged item is an asset, liability, firm commitment or highly probable forecast transaction that exposes the Banking Group to
risk of changes in fair value or cash flows, and that is designated as being hedged. The Banking Group applies fair value hedge
accounting to hedge movements in the value of fixed interest rate assets and liabilities subject to interest rate risk. The Banking
Group applies cash flow hedge accounting to hedge the variability in highly probable forecast future cash flows attributable to
interest rate risk on variable rate assets and liabilities.
Fair value hedge accounting
The criteria that must be met for a relationship to qualify for hedge accounting include:
the hedging relationship must be formally designated and documented at inception of the hedge,
effectiveness testing must be carried out on an on-going basis to ensure the hedge is effective, consistent with the originally
documented risk management strategy, and
the instruments or counterparty must be a third party external to the Banking Group.
The Banking Group documents, at the inception of the transaction, the relationship between hedged items and hedging
instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Banking Group
also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in
hedging transactions are highly effective in offsetting changes in fair value of hedged items.
Subsequent to initial designation, changes in the fair value of derivatives that are designated and qualify for fair value hedge
accounting are recorded through profit or loss alongside any changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk.
Where the hedged item is carried at amortised cost, the movement in fair value of the hedged item attributable to the hedged
risk is made as an adjustment to the carrying value of the hedged asset or liability. When a hedging instrument expires or is sold,
or when a hedge no longer meets the criteria for hedge accounting, the adjustment to carrying amount of a hedged item carried
at amortised cost is amortised to the consolidated statement of comprehensive income on an effective yield basis over the
remaining period to maturity of the hedged item. Where a hedged item carried at amortised cost is derecognised from the
balance sheet, the adjustment to the carrying amount of the asset or liability is immediately transferred to the consolidated
statement of comprehensive income.
Cash flow hedge accounting
The criteria that must be met for a relationship to qualify for hedge accounting include:
the hedging relationship must be formally designated and documented at inception of the hedge,
effectiveness testing must be carried out on an on-going basis to ensure the hedge is effective, consistent with the originally
documented risk management strategy, and
the instruments or counterparty must be a third party external to the Banking Group.

P. 26
11 Derivative financial instruments (continued)
Cash flow hedge accounting (continued)
The Banking Group documents, at the inception of the transaction, the relationship between hedged items and hedging
instruments, as well as its risk management objective and strategy for undertaking various hedge transactions. The Banking Group
also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in
hedging transactions are highly effective in offsetting changes in cash flows of hedged items.
A fair value gain or loss associated with the effective portion of a derivative designated as a cash flow hedge is recognised initially
in the hedging reserve. The ineffective portion of a fair value gain or loss is recognised immediately in the consolidated statement
of comprehensive income.
When a hedging derivative expires or is sold, the hedge no longer meets the criteria for hedge accounting, or the Banking Group
elects to revoke the hedge designation, the cumulative gain or loss on the hedging derivative remains in the cash flow hedging
reserve until the forecast transaction occurs and affects income, at which point it is transferred to the corresponding income or
expense line. If a forecast transaction is no longer expected to occur, the cumulative gain or loss on the hedging derivative
previously reported in the cash flow hedging reserve is immediately transferred to the consolidated statement of comprehensive
income.
June 2022June 2021
NotionalFair ValueFair ValueNotional
Fair Value
Fair Value
$000's
PrincipalAssetsLiabilitiesPrincipalAssetsLiabilities
Held for risk management
Interest rate related contracts
Swaps 1,478,15144,4876,3351,104,01214,1064,520
Foreign currency related contracts
Forwards---27,8465269
Total derivative financial instruments1,478,15144,4876,3351,131,85814,1114,789
The Banking Group has entered into credit support annexes (CSAs) which form a part of International Swaps and Derivatives
Association (ISDA) Master Agreement, in respect of certain exposures relating to derivative transactions. As per these CSAs, the
Banking Group or the counterparty needs to collateralise the market value of outstanding derivative transactions. As at 30 June
2022, the Banking Group has received $32.34 million of cash collateral (2021: $4.09 million) against derivative assets. The cash
collateral received is not netted off against the balance of derivative assets disclosed in the consolidated statement of financial
position.
The Banking Group actively manages interest rate risk by entering into derivative contracts to hedge against movements in
interest rates. During the year interest rate swaps entered into by the Banking Group could not be designated into a hedging
relationship with the portfolio of financial assets and liabilities held considering their underlying risks could no longer be critically
matched against those of the interest rate swaps. Consequently, hedge accounting could not be established resulting in the
recognition of fair value gains from the interest rate swaps in the consolidated statement of comprehensive income.

P. 27
12 Finance receivables
(a) Finance receivables held at amortised cost
Policy
Finance receivables are initially recognised at fair value plus incremental direct transaction costs and are subsequently
measured at amortised cost using the effective interest method, less any impairment loss.
Fees and direct costs relating to loan origination, financing and loan commitments are deferred and amortised to interest
income over the life of the loan using the effective interest rate method. Lending fees not directly related to the origination of a
loan are recognised over the period of service.
Past due but not impaired assets are any assets which have not been operated by the counterparty within their key terms but
are not considered to be impaired by the Banking Group.
Individually impaired assets are those loans for which the Banking Group has evidence that it will incur a loss, and will be unable
to collect all principal and interest due according to the contractual terms of the loan.
In determining whether credit risk has increased all available information relevant to the assessment including information
about past events, current conditions and reasonable and supportable forecasts of economic conditions at the reporting date
are taken into consideration.
The calculation of expected credit loss is modelled for portfolios of like assets. For portfolios which are either new or too small
to model, judgement is used to determine impairment provisions.
$000's
June 2022June 2021
Non-securitised
Neither at least 90 days past due nor impaired
3,391,8323,063,258
At least 90 days past due - at amortised cost
41,27936,602
Individually impaired - at amortised cost
66,18338,143
Gross finance receivables3,499,2943,138,003
Less provision for impairment
(50,232)(50,809)
Total non-securitised finance receivables3,449,0623,087,194
Securitised
Neither at least 90 days past due nor impaired
313,364126,638
At least 90 days past due - at amortised cost
--
Individually impaired - at amortised cost
--
Gross finance receivables313,364126,638
Less provision for impairment
(195)(239)
Total securitised finance receivables313,169126,399
Total
Neither at least 90 days past due nor impaired
3,705,1963,189,896
At least 90 days past due - at amortised cost
41,27936,602
Individually impaired - at amortised cost
66,18338,143
Gross finance receivables3,812,6583,264,641
Less provision for impairment
(50,427)(51,048)
Total finance receivables3,762,2313,213,593
Refer to Note 22 - Asset quality for further analysis of finance receivables by credit risk concentration.

P. 28
12 Finance receivables (continued)
(a) Finance receivables held at amortised cost (continued)
Movement in provision
The following table details the movement from the opening balance to the closing balance of the provision for impairment
losses by class.
LifetimeLifetime
ECLECL
12 - MonthNot CreditCreditSpecific
$000'sECLImpairedImpairedProvisionTotal
June 2022
Non-securitised
Impairment allowance as at 30 June 2021
24,2162,33416,6307,62950,809
Changes in loss allowance
Transfer between stages
(3,800)(2,391)9165,275-
New and increased provision (net of collective
provision releases)
(1,411)1,92211,4995,50717,517
Recovery of amounts written off
--(2,755)-(2,755)
Credit impairment charge(5,211)(469)9,66010,78214,762
Recovery of amounts previously written off
--2,755-2,755
Write offs
--(14,684)(3,410)(18,094)
Impairment allowance as at 30 June 202219,0051,86514,36115,00150,232
Securitised
Impairment allowance as at 30 June 2021
216221-239
Changes in loss allowance
Transfer between stages
(6)(109)115--
New and increased provision (net of collective
provision releases)
(14)85(141)-(70)
Recovery of amounts written off
-----
Credit impairment charge(20)(24)(26)-(70)
Recovery of amounts previously written off
-----
Write offs
--26-26
Impairment allowance as at 30 June 2022196(2)1-195
Total
Impairment allowance as at 30 June 2021
24,4322,35616,6317,62951,048
Changes in loss allowance
Transfer between stages
(3,806)(2,500)1,0315,275-
New and increased provision (net of collective
provision releases)
(1,425)2,00711,3585,50717,447
Recovery of amounts written off
--(2,755)-(2,755)
Credit impairment charge(5,231)(493)9,63410,78214,692
Recovery of amounts previously written off
--2,755-2,755
Write offs
--(14,658)(3,410)(18,068)
Impairment allowance as at 30 June 202219,2011,86314,36215,00150,427

P. 29
12 Finance receivables (continued)
(a) Finance receivables held at amortised cost (continued)
Movement in provision (continued)
LifetimeLifetime
ECLECL
12 - MonthNot CreditCreditSpecific
$000'sECLImpairedImpairedProvisionTotal
June 2021
Non-securitised
Impairment allowance as at 30 June 202032,1602,14422,6675,30162,272
Changes in loss allowance
Transfer between stages(2,466)(1,081)(50)3,597-
New and increased provision (net of collective
provision releases)
(3,495)1,30913,2956,03417,143
Recovery of amounts written off--(2,406)-(2,406)
Credit impairment charge(5,961)22810,8399,63114,737
Recovery of amounts previously written off--2,406-2,406
Write offs--(19,291)(7,303)(26,594)
Effect of changes in foreign exchange rate(33)26-(25)
Acquisition of portfolio13322188-343
Sale of portfolio(2,083)(62)(185)-(2,330)
Impairment allowance as at 30 June 202124,2162,33416,6307,62950,809
Securitised
Impairment allowance as at 30 June 202026023114-397
Changes in loss allowance
Transfer between stages(4)(3)7--
New and increased provision (net of collective
provision releases)
(40)2(120)-(158)
Recovery of amounts written off----
-
Credit impairment charge(44)(1)(113)-(158)
Recovery of amounts previously written off-----
Write offs-----
Effect of changes in foreign exchange rate-----
Acquisition of portfolio-----
Sale of portfolio-----
Impairment allowance as at 30 June 2021216221-239
Total
Impairment allowance as at 30 June 202032,4202,16722,7815,30162,669
Changes in loss allowance
Transfer between stages(2,470)(1,084)(43)3,597-
New and increased provision (net of collective
provision releases)
(3,535)1,31113,1756,03416,985
Recovery of amounts written off--(2,406)-(2,406)
Credit impairment charge(6,005)22710,7269,63114,579
Recovery of amounts previously written off--2,406-2,406
Write offs--(19,291)(7,303)(26,594)
Effect of changes in foreign exchange rate(33)26-(25)
Acquisition of portfolio13322188-343
Sale of portfolio(2,083)(62)(185)-(2,330)
Impairment allowance as at 30 June 202124,4322,35616,6317,62951,048

P. 30
12 Finance receivables (continued)
(a) Finance receivables held at amortised cost (continued)
Impact of changes in gross finance receivables held at amortised cost on allowance for ECL
LifetimeLifetime
ECLECL
12 - MonthNot CreditCreditSpecific
$000'sECLImpairedImpairedProvisionTotal
June 2022
Gross finance receivables as at 30 June 20213,016,571164,72845,19938,1433,264,641
Transfer between stages(109,051)24,87128,78655,394-
Additions2,059,181--3,0022,062,183
Deletions(1,383,366)(72,084)(13,341)(26,946)(1,495,737)
Write offs--(15,019)(3,410)(18,429)
Gross finance receivables as at 30 June 20223,583,335117,51545,62566,1833,812,658
June 2021
Gross finance receivables as at 30 June 20202,825,973183,26073,72924,6673,107,629
Transfer between stages(102,624)67,21912,90622,499-
Additions1,421,835--9551,422,790
Deletions(1,128,613)(85,751)(20,815)(466)(1,235,645)
Write offs--(20,621)(9,512)(30,133)
Gross finance receivables as at 30 June 20213,016,571164,72845,19938,1433,264,641
(b) Finance receivables held at fair value
Policy
Finance receivables – reverse mortgages are initially recognised, and subsequently measured, at fair value through profit or loss.
$000'sJune 2022June 2021
Finance receivables - reverse mortgages721,264 601,505
Total finance receivables - reverse mortgages721,264 601,505
Note 19 (a) - Financial instruments measured at fair value discloses further information regarding the Banking Group’s valuation
policy.
Note 21 - Credit risk exposure discloses further information regarding how reverse mortgage loans operate.
Credit risk adjustments on financial assets designated at fair value through profit or loss
There were no credit risk adjustments on individual financial assets.

P. 31
13 Operating lease vehicles
Policy
Operating lease vehicles are stated at cost less accumulated depreciation.
Operating lease vehicles are depreciated on a straight-line basis over their expected useful life after allowing for any residual
values. The estimated lives of these vehicles vary up to five years. Vehicles held for sale are not depreciated but are tested for
impairment.
$000'sJune 2022June 2021
Cost
Opening balance16,11424,098
Additions10,7581,788
Disposals(6,422)(9,772)
Closing balance20,45016,114
Accumulated depreciation
Opening balance5,2496,495
Depreciation charge for the year3,1032,801
Disposals(3,063)(4,047)
Closing balance5,2895,249
Opening net book value10,86517,603
Closing net book value15,16110,865
The future minimum lease payments receivable under operating leases not later than one year is $3.057 million (2021: $2.141
million), within one to five years is $6.465 million (2021: $1.406 million) and over five years is nil (2021: nil).
14 Borrowings
Policy
Borrowings and deposits are initially recognised at fair value including incremental direct transaction costs. They are subsequently
measured at amortised cost using the effective interest method.
$000'sJune 2022June 2021
Deposits3,597,1443,219,522
Total borrowings related to deposits3,597,1443,219,522
Unsubordinated notes272,983284,517
Securitised borrowings267,779108,150
Certificate of deposit198,71569,853
Money market borrowings10,001-
Repurchase agreement-40,365
Total other borrowings749,478502,885
Deposits and unsubordinated notes rank equally and are unsecured.

P. 32
14 Borrowings (continued)
The Banking Group has the following unsubordinated notes on issue at balance sheet date:
PrincipalValuationIssue DateMaturity DateFrequency of Interest
Repayment
$125 millionAmortised cost12 April 201912 April 2024Semi-annually
$150 millionAmortised cost21 September 201721 September 2022Semi-annually
At 30 June 2022 the Banking Group had the following securitised borrowings outstanding:
Heartland Auto Receivables Warehouse Trust 2018-1 securitisation facility $400 million, drawn $268 million (2021: $300
million, drawn $108 million). Notes issued to investors are secured over the assets of the Heartland Auto Receivables
Warehouse Trust 2018-1. The facility has a maturity date of 26 August 2023.
15 Share capital and dividends
Policy
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options
are recognised as a deduction from equity, net of any tax effect.
June 2022June 2021
Number ofNumber of
000'sSharesShares
Issued shares
Opening balance565,430565,430
Closing balance565,430565,430
There were nil new shares issued during the period (2021:nil).
Dividends paid
June 2022June 2021
Date Declared$000's Date Declared$000's
Dividend to HGH21 February 202235,50018 June 202130,000
Total dividends paid35,50030,000

P. 33
16 Other reserves
DefinedCash Flow
Fair ValueBenefitHedge
$000'sReserveReserveReserveTotal
June 2022
Balance as at 30 June 2021(322)171906755
Other comprehensive income, net of income tax(712)(171)6,5405,657
Balance as at 30 June 2022(1,034)-7,4466,412
June 2021
Balance as at 30 June 20205,324171(8,022)(2,527)
Other comprehensive income, net of income tax(5,646)-8,9283,282
Balance as at 30 June 2021(322)171906755
17 Other balance sheet items
Policy
Property, plant and equipment are stated at cost less accumulated depreciation and impairment (if any). Depreciation is
calculated on a straight line basis to write off the net cost or revalued amount of each asset over its expected life to its estimated
residual value.
$000'sJune 2022June 2021
Other assets
Trade receivables-635
GST receivables1,5061,476
Prepayments4,6972,832
Property, plant and equipment6,9608,830
Other receivables1751,049
Total other assets13,33814,822
Policy
Intangible assets
Intangible assets with finite useful lives
Software acquired or internally developed by the Banking Group is stated at cost less accumulated amortisation and any
accumulated impairment losses. Expenditure on software assets is capitalised only when it increases the future economic value of
that asset. Amortisation of software is on a straight line basis, at rates which will write off the cost over the assets’ estimated
useful lives. The expected useful life of the software varies up to ten years.
Goodwill
Goodwill arising on acquisition represents the excess of the cost of the acquisition over the Banking Group’s interest in the fair
value of the identifiable net assets acquired. Goodwill that has an indefinite useful life is not subject to amortisation and is tested
for impairment annually. Goodwill is carried at cost less accumulated impairment losses.

P. 34
17 Other balance sheet items (continued)
$000'sJune 2022June 2021
Computer software
Cost54,77743,360
Accumulated depreciation26,15820,328
Net carrying value of computer software28,61923,032
Goodwill
Cost29,79929,799
Net carrying value of goodwill29,79929,799
Total intangible assets58,41852,831
For the purposes of impairment testing, goodwill is allocated to cash generating units. A Cash Generating Unit (CGU) is the
smallest identifiable group of assets that generate independent cash inflows. The Banking Group has assessed that goodwill
should be allocated to Heartland Bank Limited as the smallest identifiable CGU.
Goodwill is tested for impairment at a cash generating unit level. The recoverable amounts are determined on a value in use basis
using a five-year discounted cash flow methodology based on financial budget and forecasts. Key assumptions used in the models
included a discount rate of 10% and a terminal growth rate of 2% which reflect both past experience and external sources of
information. The recoverable amounts for each CGU are compared to the respective carrying value of net assets.
There was no indication of impairment and no impairment losses have been recognised against the carrying amount of goodwill
for the year ended 30 June 2022 (30 June 2021: nil).
Policy
Employee benefits
Annual leave entitlements are accrued at amounts expected to be paid. Long service leave is accrued by calculating the probable
future value of the entitlements and discounting back to present value. Obligations to defined contribution superannuation
schemes are recognised as an expense when the contribution is paid.
$000'sJune 2022June 2021
Trade and other payables
Trade payables13,3299,218
Insurance liability1,8403,354
Employee benefits5,8104,625
Other tax payables1,132630
Collateral received on derivatives32,3414,091
Total trade and other payables54,45221,918

P. 35
17 Other balance sheet items (continued)
Policy
Leases
The Banking Group leases office space, car parks, equipment and cars. Rental contracts are typically made for fixed periods but
may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions.
In determining the lease term, all facts and circumstances that create an economic incentive to exercise an extension option are
considered. Extension options are only included in the lease term if the lease is reasonably certain to be extended.
Lease liabilities are measured at the present value of the remaining lease payments and discounted using the Banking Group's
incremental borrowing rate (IBR). Lease liabilities are measured using the effective interest method. Carrying amounts are
remeasured only upon reassessments and lease modifications.
Right of use assets are depreciated at the shorter of lease term or the Banking Group’s depreciation policy for that asset class.
$000'sJune 2022June 2021
Right of use assets
Balance at beginning of year15,65417,843
Depreciation charge for the year, included within depreciation expense in the income statement(2,122)(2,123)
Additions/(terminations) to right of use assets128(66)
Total right of use assets13,66015,654
Lease liability
Current3,1812,124
Non-current12,54515,656
Total lease liability15,72617,780
Interest expense relating to lease liability470555
18 Related party transactions and balances
Policy
A person or entity is a related party under the following circumstances:
a) A person or a close member of that person's family if that person:
i)has control or joint control over the Bank;
ii) has significant influence over the Bank; or
iii) is a member of the key management personnel of the Bank.
b) An entity is related to the Bank if any of the following conditions applies:
i)The entity and the Bank are members of the same group;
ii)One entity is an associate or joint venture of the other entity;
iii) Both entities are joint ventures of the same third party;
iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity;
v)The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity
related to the bank;
vi) The entity is controlled, or jointly controlled by a person identified in (a); and
vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of
q the entity (or of a parent of the entity).
(a) Transactions with key management personnel
Key management personnel (KMP), are those who, directly or indirectly, have authority and responsibility for planning, directing
and controlling the activities of HGH and HBL. This includes all executive staff, Directors and their close family members.

P. 36
18 Related party transactions and balances (continued)
(a) Transactions with key management personnel (continued)
KMP receive personal banking and financial investment services from the Bank in the ordinary course of business. The terms and
conditions, for example interest rates and collateral, and the risks to the Bank are comparable to transactions with other
employees and did not involve more than the normal risk of repayment or present other unfavourable features.
All other transactions with KMPs and their related entities are made on terms equivalent to those that prevail in arm's length
transactions.
$000'sJune 2022June 2021
Transactions with key management personnel
Interest income receivable2639
Interest expense payable(24)(22)
Key management personnel compensation
Short-term employee benefits(2,373)(2,793)
Short-term employee benefits - HGH parent(6,417)(6,591)
Share-based payment expense(1,915)(1,797)
Total transactions with key management personnel(10,703)(11,164)
Due from/(to) key management personnel
Lending229415
Borrowings - deposits(508)(23,409)
Total due (to) key management personnel(279)(22,994)
(b) Transactions with related parties
The Banking Group's ultimate parent company is HGH.
The Bank has regular transactions with its ultimate parent company, fellow subsidiaries and subsidiaries (collectively known as the
Heartland Group) on agreed terms. The transactions include the provision of tax and administrative services and customer
operations. Banking facilities are provided by HBL to other Banking Group entities on normal commercial terms as with other
customers. There is no lending from the Banking Group to HGH.
Related party transactions between the Banking Group eliminate on consolidation. Related party transactions outside of the
Banking Group are as follows:
$000'sJune 2022June 2021
Heartland Group Holdings Limited (HGH)
Interest expense6821
Deposits/(withdrawals)(31,500)31,000
Dividends paid to HGH35,50030,000
Management fees payable to HGH8,32715,785
Management fees receivable from HGH2,1641,149
Heartland Australia Group Pty Limited (HAG)
Sale of Spotcap facility-28,049
Sale of Harmoney Australia Fund-40,966

P. 37
18 Related party transactions and balances (continued)
(b) Transactions with related parties (continued)
$000'sJune 2022June 2021
Australian Seniors Finance Pty Limited (ASF)
Management fees payable to ASF
-4
Management fees receivable from ASF
2,7521,707
ASF Settlement Trust
Sale of Australian dollar reverse mortgage loan book
-45,971
Southern Cross Building Society Staff Superannuation (SCBS)
Interest expense payable to SCBS
612
Management fees receivable from SCBS
1010
Cash received from SCBS
350-
(c) Due from/to related parties
$000'sJune 2022June 2021
Due from
Australian Seniors Finance Pty Limited
1,540146
Total due from related parties1,540146
Due to
Heartland Group Holdings Limited
1,5353,210
Total due to related parties1,5353,210
(d) Other balances with related parties
$000'sJune 2022June 2021
Heartland Group Holdings Limited
Retail deposits owing to HGH4,63636,068
Southern Cross Building Society Staff Superannuation
Retail deposits owing to SCBS
1
351,760
1
During the year, the beneficiaries of SCBS accepted a settlement offer and were paid a final lump sum totalling $1.3 million. This
was supported by an actuarial valuation and approved by the Financial Markets Authority (FMA). The residual balance was
transferred to HBL as the employer, leaving the above balance to cover remaining costs.
HGH has indemnified HBL against a non performing loan which had a balance of $4.3 million as at 30 June 2022 (2021: nil).
19 Fair value
Policy
Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
On initial recognition, the transaction price generally represents the fair value of the financial instrument, unless there is
observable information from an active market that provides a more appropriate fair value.
The fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices or
dealer price quotations. For all other financial instruments, the Banking Group determines fair value using other valuation
techniques.

P. 38
19 Fair value (continued)
The Banking Group measures fair values using the following fair value hierarchy, which reflects the observability of the inputs
used in measuring fair value:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that
is, as prices) or indirectly (derived from prices).
Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Banking Group recognises transfers between levels of the fair value hierarchy as at the end of the reporting period during
which the change has occurred.
(a) Financial instruments measured at fair value
The following methods and assumptions were used to estimate the fair value of each class of financial asset and liability measured
at fair value on a recurring basis in the consolidated statement of financial position.
The Banking Group has an established framework in performing valuations required for financial reporting purposes including
Level 3 fair values. The Banking Group regularly reviews and calibrates significant unobservable inputs and valuation adjustments
in accordance with market participants’ views. If external valuation specialists are engaged to measure fair values, the Banking
Group assesses the evidence obtained from these specialists to support the conclusion of these valuations. All significant
valuations are reported to the Banking Group's Board Audit Committee for approval prior to its adoption in the financial
statements.
Investments
Investments in public sector securities and corporate bonds are stated at fair value through other comprehensive income (FVOCI),
with the fair value being based on quoted market prices (Level 1 under the fair value hierarchy) or modelled using observable
market inputs (Level 2 under the fair value hierarchy). Refer to Note - 10 Investments for more details.
Investments valued under Level 2 of the fair value hierarchy are valued either based on quoted market prices or dealer quotes for
similar instruments, or discounted cash flows analysis.
Investments in equity securities are classified as fair value through profit or loss unless an irrevocable election is made by the
Banking Group to measure at FVOCI. Investment in listed securities traded in liquid, active markets where prices are readily
observable are measured under Level 1 of the fair value hierarchy with no modelling or assumptions used in the valuation.
Investments in unlisted equity securities are measured under Level 3 of the fair value hierarchy with the fair value being based on
unobservable inputs using market accepted valuation techniques. Where appropriate, the Banking Group may apply adjustments
to the above-mentioned techniques to determine fair value of an equity security to reflect the underlying characteristics. These
adjustments are reflective of market participant considerations in valuing the said security.
Investment properties
Investment properties are initially recorded at their fair value, with subsequent changes in fair value recognised in profit or loss.
Fair value are determined by qualified independent valuers or other similar external evidence, adjusted for changes in market
conditions.
Investment properties have been acquired through the enforcement of security over finance receivables and are held to earn
rental income or for capital appreciation (or both).
Finance receivables - reverse mortgages
Reverse mortgage loans are classified at FVTPL. On initial recognition the Banking Group considers the transaction price to
represent the fair value of the loan.

P. 39
19 Fair value (continued)

(a) Financial instruments measured at fair value (continued)
Finance receivables - reverse mortgages (continued)
For subsequent measurement the Banking Group has considered if the fair value can be determined by reference to a relevant
active market or observable inputs, but has concluded relevant support is not currently available. In the absence of such market
evidence the Banking Group has used valuation techniques (income approach) including actuarial assessments to consider the fair
value.
When the Banking Group enters into a reverse mortgage loan the Banking Group has set expectations regarding the loan’s current
and future risk profile and expectation of performance. This expectation references a wide range of assumptions including:
mortality and potential move into care;
voluntary exits;
house price changes;
no negative equity guarantee; and
interest rate margin.
At balance date the Banking Group does not consider any of the above expectations to have moved outside of the original
expectation range. Therefore, the Banking Group has continued to estimate the fair value of the portfolio at transaction price.
There has been no fair value movement recognised in profit or loss during the period (2021: nil). Fair value is not highly sensitive
to the above assumptions due to the nature of reverse mortgage loans. In particular, given conservative origination loan-to-value
ratio criteria, a material deterioration in house prices combined with a material increase in interest rates over a sustained period
of time would likely need to occur before any potential impact to fair value. While noting the significant uncertainty around future
economic conditions, based on current judgement there is no evidence that COVID-19 has impacted or will have a long-term
adverse impact on market conditions, particularly regarding the key elements of house prices or interest rates, that would
materially influence the fair value of the reverse mortgage portfolio at balance date.
The Banking Group will continue to reassess the existence of a relevant active market and movements in expectations on an on-
going basis.
Derivative financial instruments
Interest rate and foreign currency related contracts are recognised in the financial statements at fair value. Fair values are
determined from observable market prices as at the reporting date, discounted cash flow models or option pricing models as
appropriate (Level 2 under the fair value hierarchy).
The following table analyses financial instruments measured at fair value at the reporting date by the level in the fair value
hierarchy into which each fair value measurement is categorised. The amounts are based on the values recognised in the
consolidated statement of financial position.

P. 40
19 Fair value (continued)
(a) Financial instruments measured at fair value (continued)
$000'sLevel 1Level 2Level 3Total
June 2022
Assets
Investments271,790-1,503273,293
Investment properties--11,83211,832
Derivative financial instruments-44,487-44,487
Finance receivables - reverse mortgages--721,264721,264
Total financial assets measured at fair value271,79044,487734,5991,050,876
Liabilities
Derivative financial instruments-6,335-6,335
Total financial liabilities measured at fair value-6,335-6,335
June 2021
Assets
Investments259,04192,4761,818353,335
Investment properties--11,83211,832
Derivative financial instruments-14,111-14,111
Finance receivables - reverse mortgages--601,505601,505
Total financial assets measured at fair value259,041106,587615,155980,783
Liabilities
Derivative financial instruments-4,789-4,789
Total financial liabilities measured at fair value-4,789-4,789
There were no transfers between levels in the fair value hierarchy in the year ended 30 June 2022 (2021: nil).

P. 41
19 Fair value (continued)
(a) Financial instruments measured at fair value (continued)
The movement in Level 3 assets measured at fair value are below:
Finance ReceivablesInvestment
$000's
- Reverse MortgageInvestmentsPropertiesTotal
June 2022
As at 30 June 2021
601,5051,81811,832615,155
New loans
162,166--162,166
Repayments
(83,629)--(83,629)
Capitalised Interest and fees
41,864--41,864
Fair value (loss) on investment
-(315)-(315)
Other
(642)--(642)
As at 30 June 2022721,2641,50311,832734,599
June 2021
As at 30 June 2020
609,3462,30311,132622,781
New loans
99,510--99,510
Repayments
(97,577)--(97,577)
Capitalised Interest and fees
35,775--35,775
Disposal
(45,650)--(45,650)
Fair value (loss)/gain on investment
-(485)700215
Other
101--101
As at 30 June 2021601,5051,81811,832615,155
(b) Financial instruments not measured at fair value
The following assets and liabilities of the Banking Group are not measured at fair value in the consolidated statement of financial
position.
Cash and cash equivalents
Cash and cash equivalents are measured at amortised cost and their carrying value is considered equivalent to their fair value due
to their short term nature.
Finance receivables
The fair value of the Banking Group's finance receivables is calculated using a valuation technique which assumes the Banking
Group's current weighted average lending rates for loans of a similar nature and term.
The current weighted average lending rate used to fair value finance receivables with a fixed interest rate was 7.77% (2021:
7.08%). Finance receivables with a floating interest rate are deemed to be at current market rates. The current amount of credit
provisioning has been deducted from the fair value calculation of finance receivables as a proxy for future losses.

P. 42
19 Fair value (continued)
(b) Financial instruments not measured at fair value (continued)
Borrowings
The fair value of deposits, bank borrowings and other borrowings is the present value of future cash flows and is based on the
current market interest rates payable by the Banking Group for debt of similar maturities. The average current market rate used
to fair value borrowings was 3.57% (2021: 1.23%).
Due to and from related parties
The fair value of amounts due to and from related parties is considered equivalent to their carrying value due to their short term
nature.
Other financial assets and financial liabilities
The fair value of financial instruments such as short-term trade receivables and payables is considered equivalent to their carrying
value due to their short-term nature.
The following table sets out financial instruments not measured at fair value, compares their carrying value against their fair value
and analyses them by level in the fair value hierarchy.
June 2022June 2021
TotalTotal
Fair ValueTotal FairCarryingFair ValueTotal FairCarrying
$000'sHierarchyValueValueHierarchyValueValue
Assets
Cash and cash equivalentsLevel 1221,469221,469Level 1112,903112,903
Investments
1
Level 22,4182,421Level 25,6405,639
Finance receivablesLevel 33,701,6943,762,231Level 33,283,1593,213,593
Due from related partiesLevel 31,5401,540Level 3146146
Other financial assetsLevel 3175175Level 31,6841,684
Total financial assets3,927,2963,987,8363,403,5323,333,965
Liabilities
Retail depositsLevel 23,595,5543,597,144Level 23,228,7913,219,522
Borrowings - securitisedLevel 2267,779267,779Level 2108,150108,150
Other borrowingsLevel 2481,699481,699Level 2394,735394,735
Due to related parties
Level 31,5351,535Level 33,2103,210
Other financial liabilitiesLevel 347,51047,510Level 316,66316,663
Total financial liabilities4,394,0774,395,6673,751,5493,742,280
1
Included within investments are bank deposits which are held to support the Banking Group's contractual cash flows. Such
investments are measured at amortised cost.

P. 43
19 Fair value (continued)
(c) Classification of financial instruments
The following tables summarise the categories of financial instruments and the carrying value and fair value of all financial
instruments of the Banking Group:
Total
AmortisedCarryingTotal Fair
$000'sFVOCIFVTPLCostValueValue
June 2022
Assets
Cash and cash equivalents--221,469221,469221,469
Investments271,7901,5032,421275,714275,711
Investment properties-11,832-11,83211,832
Finance receivables--3,762,2313,762,2313,701,694
Finance receivables - reverse mortgages-721,264-721,264721,264
Derivative financial instruments25,40319,084-44,48744,487
Due from related parties--1,5401,5401,540
Other financial assets--175175175
Total financial assets297,193753,6833,987,8365,038,7124,978,172
Liabilities
Deposits--3,597,1443,597,1443,595,554
Other borrowings--749,478749,478749,478
Derivative financial instruments1,0995,236-6,3356,335
Due to related parties--1,5351,5351,535
Other financial liabilities--47,51047,51047,510
Total financial liabilities1,0995,2364,395,6674,402,0024,400,412
June 2021
Assets
Cash and cash equivalents--112,903112,903112,903
Investments351,5181,8185,639358,975358,975
Investment properties-11,832-11,83211,832
Finance receivables--3,213,5933,213,5933,283,159
Finance receivables - reverse mortgages-601,505-601,505601,505
Derivative financial instruments3,21310,898-14,11114,111
Due from related parties--146146146
Other financial assets--1,6841,6841,684
Total financial assets354,731626,0533,333,9654,314,7494,384,315
Liabilities
Deposits--3,219,5223,219,5223,228,791
Other borrowings--502,885502,885502,885
Derivative financial instruments4,395394-4,7894,789
Due to related parties---3,2103,210
Other financial liabilities--16,66316,66316,663
Total financial liabilities4,3953943,739,0703,747,0693,756,338

P. 44
Risk Management
20 Enterprise risk management program
The board of directors (the Board) sets and monitors the Banking Group’s risk appetite across the primary risk domains of credit,
capital, liquidity, market (including interest rate), operational and compliance and general business risk. Management are, in turn,
responsible for ensuring appropriate structures, policies, procedures and information systems are in place to actively manage
these risk domains, as outlined within the Enterprise Risk Management Framework (ERMF). Collectively, these processes are
known as the Bank's Enterprise Risk Management Program (RMP).
Role of the Board and the Board Risk Committee
The Board, through its Board Risk Committee (BRC) is responsible for oversight and governance of the development of the RMP.
The role of the BRC is to assist the Board to formulate its risk appetite, and to monitor the effectiveness of the RMP. The BRC has
the following specific responsibilities:
The Board's Risk Appetite Statement.
Heartland’s Internal Capital Adequacy Assessment Program (ICAAP) including appropriate stress testing scenarios.
The effectiveness of the ERMF and internal compliance and risk related policies, including approval or variation of policies,
procedures and standards.
Respond to changes anticipated in the economic, business and regulatory environment.
Conduct, culture and customer outcomes, including emerging risks and any areas of concern.
Credit exposures of the Bank, including the Delegated Lending Authority Policy and Framework.
New products, including the process for approval of new products.
The BRC consists of three non-executive directors. Two members of the BRC sit on the Board Audit Committee (BAC). In addition,
the CEO HBL, CRO, Head of Internal Audit and the CFO Heartland Group Holdings Limited (or their nominee, subject to the Chair’s
prior approval) attend the BRC meetings, and the directors who are not members of the BRC are entitled to attend meetings and
to receive copies of the BRC papers.
Board Audit Committee
The BAC focuses on financial reporting and application of accounting policies as part of the internal control and risk assessment
framework. The BAC monitors the identification, evaluation and management of all significant risks through the Banking Group.
This work is supported by Internal Audit, which provides an independent assessment of the design, adequacy and effectiveness of
internal controls. The BAC receives regular reports from Internal Audit.
Charters for both the BRC and the BAC ensure suitable cross representation to allow effective communication pertaining to
identified issues with oversight by the Board. The CRO has a direct reporting line to the Chair of the BRC. The Head of
Internal Audit has a direct reporting line to the Chair of the BAC.
Internal Audit
The Banking Group has an Internal Audit function, the objective of which is to provide independent, objective assurance over the
internal control environment. In certain circumstances, Internal Audit will provide risk and control advice to Management
provided the work does not impede the independence of the Internal Audit function. The function assists The Banking Group in
accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk
management, control, and governance processes.
Internal Audit is allowed full, free and unfettered access to any and all of the organisation’s records, personnel and physical
properties deemed necessary to accomplish its activities.

P. 45
20 Enterprise risk management program (continued)
Internal Audit (continued)
A regular cycle of review has been implemented to cover all areas of the business, focused on assessment, management and
control of risks identified. The audit plan takes into account cyclical review of various business units and operational areas, as
well as identified areas of higher identified risk. The audit methodology is designed to meet the International Standards for the
Professional Practice of Internal Auditing of The Institute of Internal Auditors.
Each audit has specific audit procedures tailored to the area of business that is being reviewed. The audit procedures are
updated during each audit to reflect any process changes. Audit work papers are completed to evidence the testing performed in
accordance with the audit procedures.
Audit reports are addressed to the manager of the relevant area that is being audited in addition to other relevant stakeholders
within the Bank. Management comments are obtained from the process owner(s) and are included in the report.
The Internal Audit function has a direct reporting line to the BAC of the Bank. A schedule of all outstanding internal control issues
is maintained and presented to the BAC to assist the BAC to track the resolution of previously identified issues. Any issues raised
that are categorised as high risk are specifically reviewed by Internal Audit during a follow-up review once the issue is considered
closed by management. The follow-up review is performed with a view to formally close out the issue.
Asset and Liability Committee (ALCO)
The ALCO comprises the CEO HBL, CFO, CRO, Head of Retail, Financial Controller HBL and Chief Distribution Officer. The ALCO has
responsibility for overseeing aspects of risk management of the Banking Group's financial position. The ALCO usually meet
monthly, and provide reports to the BRC. ALCO's specific responsibilities include decision making and oversight of risk matters in
relation to:
Market risk (including non-traded interest rate risk and the investment of capital).
Liquidity risk (including funding).
Foreign exchange rate risk.
Balance sheet structure.
Capital management.
Executive Risk Committee (ERC)
The ERC comprises the CEO HBL, CRO, CFO, Financial Controller HBL and Head of Internal Audit. The ERC has responsibility for
overseeing risk aspects not considered by ALCO, including that the internal control environment is managed so that residual risk is
consistent with the Banking Group's risk appetite. The ERC generally meets monthly, and provides minutes to the BRC. ERC’s
specific responsibilities include decision making and oversight of operational risk, compliance risk, and credit risk.
Operational and compliance risk
Operational and compliance risk is the risk arising from day to day operational activities in the execution of the Banking Group's
strategy which may result in direct or indirect loss. Operational and compliance risk losses can occur as a result of fraud, human
error, missing or inadequately designed processes, failed systems, damage to physical assets, improper behaviour or from
external events. The losses range from direct financial losses, to reputational damage, unfavourable media attention, injury to or
loss of staff or clients or as a breach of laws or banking regulations. Where appropriate, risks are mitigated by insurance.
To ensure appropriate responsibility is allocated for the management, reporting and escalation of operational and compliance
risk, the Banking Group operates a “three lines of defence” model which outlines principles for the roles, responsibilities and
accountabilities for operational and compliance risk management:

P. 46
20 Enterprise risk management program (continued)
Operational and compliance risk (continued)
The first line of defence is the business line management of the identification, management and mitigation of the risks
associated with the products and processes of the business. This accountability includes regular testing and attestation of the
adequacy and effectiveness of controls and compliance with the Banking Group's policies.
The second line of defence is the Risk and Compliance function, responsible for the design and ownership of the Operational
Risk Management Framework. It incorporates key processes including Risk and Control Self-Assessment (RCSA), incident
management, independent evaluation of the adequacy and effectiveness of the internal control framework and the
attestation process.
The third line of defence is Internal Audit which is responsible for independently assessing how effectively the Banking Group
is managing its risk according to its stated risk appetite.
The Banking Group’s exposure to operational and compliance risk is governed by a risk appetite statement approved by the Board
and is used to guide management activities. This statement sets out the nature of risk which may be taken and aggregate risk
limits, which are monitored by the ERC.
Market risk
Market risk is the possibility of experiencing losses or gains due to factors affecting the overall performance of financial markets
in which the Banking Group is exposed. The primary market risk exposures for the Banking Group are interest rate risk and
foreign exchange risk. The risk being that market interest rates or foreign exchange rates will change and adversely impact on the
Banking Group’s earnings due to either adverse moves in foreign exchange market rates or in the case of interest rate risks
mismatches between repricing dates of interest bearing assets and liabilities and/or differences between customer pricing and
wholesale rates.
Interest rate risk
Interest rate risk refers to exposure of an entity’s earnings and / or capital because of a mismatch between the interest rate
exposures of its assets and liabilities. Interest rate risk for the Banking Group arises from the provision of non-traded retail
banking products and services and from traded wholesale transactions entered into to reduce aggregate interest rate risk (known
as hedges). This risk arises from four key sources:
Mismatches between the repricing dates of interest bearing assets and liabilities (yield curve and repricing risk);
Banking products repricing differently to changes in wholesale market rates (basis risk);
Loan prepayment or deposit early withdrawal behaviour from customers that deviates from the expected or contractually
agreed behaviour (optionality risk); and
The effect of internal or market forces on a bank’s net interest margin where, for example, in a low rate environment any fall
in rates will further decrease interest income earned on the assets whereas funding cost cannot be reduced as it is already at
the minimum level (margin compression risk).
Refer Note 24 - Interest rate risk for further details regarding interest rate risk.
Foreign exchange risk
Foreign exchange risk is the risk that the Banking Group’s earnings and shareholder equity position are adversely impacted from
changes in foreign exchange rates. The Banking Group has exposure to foreign exchange translation risks through its holding of
AUD assets.

P. 47
20 Enterprise risk management program (continued)
Counterparty Credit Risk
The Banking Group has on-going credit exposure associated with:
Cash and cash equivalents;
Finance receivables;
Holding of investment securities; and
Payments owed to the Banking Group from risk management instruments.
Counterparty credit risk is managed against limits set in the Market Risk Policy including credit exposure on derivative contracts,
bilateral set-off arrangements, cash and cash equivalents and investment securities.
21 Credit risk exposure
Credit risk is the risk that a borrower will default on any type of debt by failing to make payments which it is obligated to make.
The risk is primarily that of the lender and includes loss of principal and interest, disruption to cash flows and increased collection
costs.
Credit risk is managed to achieve sustainable risk-reward performance whilst maintaining exposures within acceptable risk
“appetite” parameters. This is achieved through the combination of governance, policies, systems and controls, underpinned by
commercial judgement as described below.
To manage this risk the ERC oversees the formal credit risk management strategy. The ERC reviews the Banking Group's credit risk
exposures typically on a monthly basis. The credit risk management strategies aim to ensure that:
Credit origination meets agreed levels of credit quality at point of approval;
Sector concentrations are monitored;
Maximum total exposure to any one debtor is actively managed;
Changes to credit risk are actively monitored with regular credit reviews.
The BRC also oversees the Banking Group's credit risk exposures to monitor overall risk metrics having regard to risk appetite set
by the Board.
The BRC has authority from the Board for approval of all credit exposures. Lending authority has been provided to the Banking
Group's Credit Committee, and to the business units under a detailed Delegated Lending Authority framework. Application of
credit discretions in the business operation are monitored through a defined review and hindsight structure as outlined in the
Credit Risk Oversight Policy. Delegated Lending Authorities are provided to individual officers with due cognisance of their
experience and ability. Larger and higher risk exposures require approval of senior management, the Credit Committee and
ultimately through to the BRC.
The Banking Group employs a credit risk oversight process of hindsighting loans to ensure that credit policies and the quality of
credit processes are maintained.

P. 48
21 Credit risk exposure (continued)
Reverse mortgage loans and negative equity risk
Reverse mortgage loans are a form of mortgage lending designed for the needs of people over 60 years of age. These loans differ
to conventional mortgages in that they typically are not repaid until the borrower ceases to reside in the property. Further,
interest is not required to be paid, it is capitalised into the loan balance and is repayable on termination of the loan. As such,
there are no incoming cash flows and therefore no default risk to manage during the term of the loan. Negative equity risk arises
from the promise by the Banking Group that the maximum repayment amount is limited to the net sale proceeds of the
borrowers' property.
The Banking Group’s exposure to negative equity risk is managed by the Credit Risk Oversight Policy in conjunction with
associated lending standards specific for this product. In addition to usual criteria regarding the type, and location, of security
property that the Banking Group will accept for reverse mortgage lending, a key aspect of the Banking Group's policy is that a
borrower’s age on origination of the reverse mortgage loan will dictate the loan-to-value ratio of the reserve mortgage on
origination. The policy is managed and reviewed periodically to ensure appropriate consistency across locations.
Business Finance Guarantee Scheme (BFGS)
The Bank, along with other registered banks in New Zealand, has entered into a Deed of Indemnity with the New Zealand
Government to implement the New Zealand Government's Business Finance Guarantee Scheme. The purpose of the scheme is to
provide short term credit to eligible small and medium size businesses, who have been impacted by the economic effects of
COVID-19. The scheme allows banks to lend to a maximum of $5 million for a maximum of five years. The New Zealand
Government will guarantee 80% of any loss incurred (credit risk) with the Bank holding the remaining 20%. As at 30 June 2022 the
Bank had a total exposure of $64.8 million (2021: $64.3 million) to its customers under the scheme. BFGS has concluded on 30
June 2021 with scheme loans no longer being available.
Maximum exposure to credit risk at the relevant reporting dates
The following table represents the maximum credit risk exposure, without taking account of any collateral held. The on balance
sheet exposures set out below are based on net carrying amounts as reported in the consolidated statement of financial position.
$000'sJune 2022June 2021
On balance sheet:
Cash and cash equivalents221,469112,903
Investments274,211357,157
Finance receivables3,762,2313,213,593
Finance receivables - reverse mortgages721,264601,505
Derivative financial assets44,48714,111
Due from related parties1,540146
Other financial assets1751,684
Total on balance sheet credit exposures5,025,3774,301,099
Off balance sheet:
Letters of credit, guarantee commitments and performance bonds8,96913,484
Undrawn facilities available to customers272,735208,855
Conditional commitments to fund at future dates34,79119,083
Total off balance sheet credit exposures316,495241,422
Total credit exposures5,341,8724,542,521
As at 30 June 2022 there was $0.003 million undrawn lending commitments available to counterparties for whom drawn balances
are classified as individually impaired (2021: $0.216 million).

P. 49
21 Credit risk exposure (continued)
Concentration of credit risk by geographic region
$000'sJune 2022June 2021
New Zealand5,176,0264,332,737
Australia3,520753
Rest of the world
1
212,753260,079
5,392,2994,593,569
Provision for impairment(50,427)(51,048)
Total credit exposures5,341,8724,542,521
1
These overseas assets are primarily NZD-denominated investments in AA+ and high quality invesment grade securities issued by
offshore supranational agencies ("Kauri Bonds").
Concentration of credit risk by industry sector
The Australian and New Zealand Standard Industrial Classification (ANZSIC) codes have been used as the basis for categorising
customer and investee industry sectors.
$000'sJune 2022June 2021
Agriculture747,618670,428
Forestry and fishing148,797153,160
Mining12,52412,684
Manufacturing78,43276,951
Finance and insurance685,938577,486
Wholesale trade41,98656,522
Retail trade and accommodation 423,975279,388
Households2,134,0971,780,799
Other business services189,860148,011
Construction291,971241,668
Rental, hiring and real estate services199,388185,320
Transport and storage323,732297,920
Other113,981113,232
5,392,2994,593,569
Provision for impairment(50,427)(51,048)
Total credit exposures5,341,8724,542,521
Credit exposures to connected persons
The Banking Group's methodology for calculating credit exposure concentrations is on the basis of actual credit exposures and
calculated on a gross basis (net of individual credit impairment allowances and excluding advances of a capital nature) in
accordance with the Bank's conditions of registration and the Reserve Bank's Connected Exposures Policy (BS8). Peak end-of-day
credit exposures to non-bank connected persons are calculated using the Banking Group’s Tier 1 capital at the end of the
reporting period.

P. 50
21 Credit risk exposure (continued)
Credit exposures to connected persons (continued)
In accordance with its conditions of registration, the Banking Group's aggregate credit exposures to all connected persons must
not exceed its rating contingent limit of 15% of tier one capital. Within the overall rating contingent limit, there is a sub-limit of
15% of tier one capital which applies to the aggregate credit exposures to non-bank connected persons. There have been no
rating-contingent limit changes during the accounting period.
Peak End-of-Day for
As at June 2022Year Ended June 2022
Credit exposures to connected persons ($000's)1,5401,540
As a percentage of Tier 1 capital of the Banking Group at end of the year (%)0.25%0.25%
Credit exposures to non-bank connected persons ($000's)1,5401,540
As a percentage of Tier 1 capital of the Banking Group at end of the year (%)0.25%0.25%
As at 30 June 2022, the Banking Group had no aggregate contingent exposures to connected persons arising from risk lay-off
arrangements in respect of credit exposures to counterparties (excluding counterparties that are connected persons). The
aggregate amount of the Banking Group's individual credit provisions provided against credit exposure to connected persons was
nil at 30 June 2022.
Credit exposure to individual counterparties
The Banking Group’s aggregate concentration of credit exposure to individual counterparties is calculated based on the actual
credit exposure. Credit exposures to connected persons, the central government or central bank of any country with a long term
credit rating of A- or A3 or above, or its equivalent, and any supranational or quasi-sovereign agency with a long-term credit
rating of A- or A3 or above, or its equivalent are excluded.
The peak end-of-day aggregate concentration of credit exposure to individual counterparties has been calculated by determining
the maximum end-of-day aggregate amount of credit exposure over the relevant six-month period and then dividing the amount
by the Banking Group’s common equity tier one capital as at 30 June 2022.
Number of Exposures
Number of ExposuresPeak End-of-Day over
As at June 2022
6 Months to June 2022
Exposures to banks
With a long-term credit rating of A- or A3 or above, or its equivalent:
10% to less than 15% of CET1 capital - -
15% to less than 20% of CET1 capital 1 1
20% to less than 25% of CET1 capital 1 1
With a long-term credit rating of at least BBB- or Baa3, or its equivalent, and at
most BBB+ or Baa1, or its equivalent
- -
Exposures to non-banks
Total number of exposures to non-banks that are greater than 10% to less than
15% of CET1 capital that do not have a long-term credit rating.
1 1

P. 51
22 Asset quality
The disclosures in this note are categorised by the following credit risk concentrations:
CorporateBusiness lending including rural lending.
ResidentialLending secured by a first ranking mortgage over a residential property used primarily for residential purposes
either by the mortgagor or a tenant of the mortgagor.
All OtherThis relates primarily to consumer lending to individuals.
(a) Finance receivables by credit risk concentration
$000'sCorporateResidentialAll OtherTotal
June 2022
Neither at least 90 days past due nor impaired2,377,7551,006,9771,041,7284,426,460
At least 90 days past due15,27613125,87241,279
Individually impaired65,970-21366,183
Gross finance receivables2,459,0011,007,1081,067,8134,533,922
Provision for impairment(40,196)(115)(10,116)(50,427)
Total net finance receivables2,418,8051,006,9931,057,6974,483,495
June 2021
Neither at least 90 days past due nor impaired2,054,020663,8911,073,4903,791,401
At least 90 days past due13,85413922,60936,602
Individually impaired37,561957338,143
Gross finance receivables2,105,435664,0391,096,6723,866,146
Provision for impairment(30,277)(88)(20,683)(51,048)
Total net finance receivables2,075,158663,9511,075,9893,815,098
(b) Past due but not impaired
$000'sCorporateResidentialAll OtherTotal
June 2022
Less than 30 days past due4,1471713,2497,567
At least 30 but less than 60 days past due15,32026310,75126,334
At least 60 but less than 90 days past due4,621855,0719,777
At least 90 days past due15,27613125,87241,279
Total past due but not impaired39,36465044,94384,957
June 2021
Less than 30 days past due6,8823578,33015,569
At least 30 but less than 60 days past due11,950-7,82919,779
At least 60 but less than 90 days past due4,429-3,7988,227
At least 90 days past due13,85413922,60936,602
Total past due but not impaired37,11549642,56680,177

P. 52
22 Asset quality (continued)
(c)Individually impaired assets
$000'sCorporateResidentialAll OtherTotal
June 2022
Opening37,561957338,143
Additions 58,396--58,396
Deletions(26,577)(9)(360)(26,946)
Write offs(3,410)--(3,410)
Closing gross individually impaired assets65,970-21366,183
Less: provision for individually impaired assets15,001--15,001
Total net individually impaired assets50,969-21351,182
June 2021
Opening22,77491,88424,667
Additions 23,454--23,454
Deletions--(466)(466)
Write offs(8,667)-(845)(9,512)
Closing gross individually impaired assets37,561957338,143
Less: provision for individually impaired assets7,629--7,629
Total net individually impaired assets29,932957330,514
(d) Credit risk grading
The Banking Group's finance receivables are monitored either by account behaviour (Behavioural portfolio) or a regular
assessment of their credit risk grade based on an objective review of defined risk characteristics (Judgemental portfolio).
Finance receivables - reverse mortgages have no arrears characteristics and are assessed on origination against a pre-determined
criteria.
The Judgemental portfolio consists mainly of business and rural lending where an on-going and detailed working relationship with
the customer has been developed while the Behavioural portfolio consists of consumer, retail and smaller business receivables.
Judgemental loans are individually risk graded based on loan status, financial information, security and debt servicing ability.
Exposures in the Judgemental portfolio are credit risk graded by an internal risk grading mechanism where grade 1 is the
strongest risk. Grade 8 and grade 9 are the weakest risk grades where a loss is probable. Behavioural loans are managed based on
their arrears status.

P. 53
22 Asset quality (continued)
(d) Credit risk grading (continued)
All loans past due but not impaired have been categorised into three impairments stages (refer Note 8) which are in most cases
based on arrears status. If a Judgemental loan is risk graded 6 or above it will be classified as stage 2 as a minimum and carry a
provision based on lifetime expected credit losses.
Lifetime
ECLLifetime
12 Months Not CreditECL CreditSpecifically
$000's
ECLImpairedImpairedProvidedFair valueTotal
June 2022
Judgemental portfolio
Grade 1 - Very Strong26----26
Grade 2 - Strong10,859----10,859
Grade 3 - Sound53,756----53,756
Grade 4 - Adequate697,5905,3821,052--704,024
Grade 5 - Acceptable994,0791,82353--995,955
Grade 6 - Monitor-25,1062,308--27,414
Grade 7 - Substandard-64,2034,727--68,930
Grade 8 - Doubtful---62,672-62,672
Grade 9 - At risk of loss---3,511-3,511
Total Judgemental portfolio1,756,31096,5148,14066,183-1,927,147
Total Behavioural portfolio1,827,02521,00137,485-721,2642,606,775
Gross finance receivables3,583,335117,51545,62566,183721,2644,533,922
Provision for impairment(19,201)(1,863)(14,362)(15,001)-(50,427)
Total finance receivables3,564,134115,65231,26351,182721,2644,483,495
June 2021
Judgemental portfolio
Grade 1 - Very Strong34----34
Grade 2 - Strong10,85464---10,918
Grade 3 - Sound50,816163---50,979
Grade 4 - Adequate580,2894,6751,734--586,698
Grade 5 - Acceptable849,2865,6581,882--856,826
Grade 6 - Monitor-58,1781,038--59,216
Grade 7 - Substandard-71,7188,107--79,825
Grade 8 - Doubtful---33,228-33,228
Grade 9 - At risk of loss---4,915-4,915
Total Judgemental portfolio1,491,279140,45612,76138,143-1,682,639
Total Behavioural portfolio1,525,29324,27232,437-601,5052,183,507
Gross finance receivables3,016,572164,72845,19838,143601,5053,866,146
Provision for impairment(24,432)(2,356)(16,631)(7,629)-(51,048)
Total finance receivables2,992,140162,37228,56730,514601,5053,815,098

P. 54
22 Asset quality (continued)
(e) Provision for impairment
Lifetime ECLLifetime
12 Months Not CreditECL CreditSpecific
$000'sECLImpairedImpairedProvisionTotal
June 2022
Corporate
Impairment allowance as at 30 June 202116,5861,2144,8487,62930,277
Changes in loss allowance
Transfer between stages(3,614)(1,060)(601)5,275-
New and increased provision (net of collective
provision releases)
6,3817394,1645,50716,791
Recovery of amounts written off--(193)-(193)
Credit impairment charge2,767(321)3,37010,78216,598
Recovery of amounts previously written off--193-193
Write offs--(3,462)(3,410)(6,872)
Impairment allowance as at 30 June 202219,3538934,94915,00140,196
Residential
Impairment allowance as at 30 June 2021884(4)-88
Changes in loss allowance
New and increased provision (net of collective
provision releases)
27---27
Recovery of amounts written off-----
Credit impairment charge27---27
Recovery of amounts previously written off-----
Write offs-----
Impairment allowance as at 30 June 20221154(4)-115
All Other
Impairment allowance as at 30 June 20217,7581,13811,787-20,683
Changes in loss allowance
Transfer between stages(192)(1,440)1,632--
New and increased provision (net of collective
provision releases)
(7,833)1,2687,194-629
Recovery of amounts written off--(2,562)-(2,562)
Credit impairment charge(8,025)(172)6,264-(1,933)
Recovery of amounts previously written off--2,562-2,562
Write offs--(11,196)-(11,196)
Impairment allowance as at 30 June 2022(267)9669,417-10,116

P. 55
22 Asset quality (continued)
(e) Provision for impairment (continued)
Lifetime ECLLifetime
12 Months Not CreditECL CreditSpecific
$000'sECLImpairedImpairedProvisionTotal
June 2022
Total
Impairment allowance as at 30 June 202124,4322,35616,6317,62951,048
Changes in loss allowance
Transfer between stages(3,806)(2,500)1,0315,275-
New and increased provision (net of collective
provision releases)
(1,425)2,00711,3585,50717,447
Recovery of amounts written off--(2,755)-(2,755)
Credit impairment charge(5,231)(493)9,63410,78214,692
Recovery of amounts previously written off--2,755-2,755
Write offs--(14,658)(3,410)(18,068)
Impairment allowance as at 30 June 202219,2011,86314,36215,00150,427
June 2021
Corporate
Impairment allowance as at 30 June 2020
18,7828299,7025,30134,614
Changes in loss allowance
Transfer between stages
(2,239)(422)(936)3,597-
New and increased provision (net of collective
provision releases)
938071,3646,0348,298
Recovery of amounts written off
--(380)-(380)
Credit impairment charge(2,146)385489,6317,918
Recovery of amounts previously written off
--380-380
Write offs
--(5,282)(7,303)(12,585)
Effect of changes in foreign exchange rate
-----
Acquisition of portfolio
-----
Sale of portfolio
(50)---(50)
Impairment allowance as at 30 June 202116,5861,2144,8487,62930,277
Residential
Impairment allowance as at 30 June 2020
101(4)-7
Changes in loss allowance
Transfer between stages
(1)1---
New and increased provision (net of collective
provision releases)
792--81
Recovery of amounts written off
-----
Credit impairment charge783--81
Recovery of amounts previously written off
-----
Write offs
-----
Effect of changes in foreign exchange rate
-----
Acquisition of portfolio
-----
Sale of portfolio
-----
Impairment allowance as at 30 June 2021884(4)-88

P. 56
22 Asset quality (continued)
Provision for impairment (continued)
Lifetime ECLLifetime
12 Months Not CreditECL CreditSpecific
$000's
ECLImpairedImpairedProvisionTotal
June 2021
All Other
Impairment allowance as at 30 June 2020
13,6281,33713,083-28,048
Changes in loss allowance
Transfer between stages
(230)(663)893--
New and increased provision (net of collective
provision releases)
(3,707)50211,811-8,606
Recovery of amounts written off
--(2,026)-(2,026)
Credit impairment charge(3,937)(161)10,678-6,580
Recovery of amounts previously written off
--2,026-2,026
Write offs
--(14,009)-(14,009)
Effect of changes in foreign exchange rate
(33)26-(25)
Acquisition of portfolio
13322188-343
Sale of portfolio
(2,033)(62)(185)-(2,280)
Impairment allowance as at 30 June 20217,7581,13811,787-20,683
Total
Impairment allowance as at 30 June 2020
32,4202,16722,7815,30162,669
Changes in loss allowance
Transfer between stages
(2,470)(1,084)(43)3,597-
New and increased provision (net of collective
provision releases)
(3,535)1,31113,1756,03416,985
Recovery of amounts written off
--(2,406)-(2,406)
Credit impairment charge(6,005)22710,7269,63114,579
Recovery of amounts previously written off
--2,406-2,406
Write offs
--(19,291)(7,303)(26,594)
Effect of changes in foreign exchange rate(33)26-(25)
Acquisition of portfolio
13322188-343
Sale of portfolio
(2,083)(62)(185)-(2,330)
Impairment allowance as at 30 June 202124,4322,35616,6317,62951,048
(f) Other assets under administration
Other assets under administration are any loans, not being individually impaired or 90 days or more past due, where the
customer is in any form of voluntary or involuntary administration, including receivership, liquidation, bankruptcy or statutory
management. As at 30 June 2022, the Banking Group had $1.0 million assets under administration (2021: $0.3 million).

P. 57
23 Liquidity risk
Liquidity risk is the risk that the Banking Group is unable to meet its payment obligations as they fall due. The timing mismatch of
cash flows and the related liquidity risk in all banking operations is closely monitored by the Banking Group.
Measurement of liquidity risk is designed to ensure that the Banking Group has the ability to generate or obtain sufficient cash in
a timely manner and at a reasonable price to meet its financial commitments on a daily basis.
The Banking Group’s exposure to liquidity risk is governed by a policy approved by the Board and managed by the Asset and
Liability Committee. This policy sets out the nature of the risk which may be taken and aggregate risk limits, and the ALCO
must observe. Within this, the objective of the ALCO is to derive the most appropriate strategy for the Banking Group in terms of
a mix of assets and liabilities given its expectations of future cash flows, liquidity constraints and capital adequacy. The ALCO
employs asset and liability cash flow modelling to determine appropriate liquidity and funding strategies.
Reserve Bank of New Zealand facilities
In March 2020, the Bank was onboarded by the Reserve Bank of New Zealand (RBNZ) as an approved counterparty and executed
a 2011 Global Master Repo Agreement providing an additional source for intra-day liquidity for the Banking Group if required.
From 26 May 2020, the RBNZ made available a Term Lending Facility (TLF) to offer loans for a fixed term of three years at the
Official Cash Rate, with access to the funds linked to banks’ lending under the Business Finance Guarantee Scheme. On 25 May
2021, RBNZ announced to close TLF applications on 28 July 2021.
Additional stimulus provided through a Funding for Lending Programme also commenced in December 2020 designed to enable
banks to provide low-cost lending to the customer.
The Banking Group had not utilised any of these facilities as at 30 June 2022.
The Banking Group holds the following liquid assets and committed funding sources for the purpose of managing liquidity risk:
$000'sJune 2022June 2021
Cash and cash equivalents221,469112,903
Investments274,211357,157
Undrawn committed bank facilities132,221191,850
Total liquidity627,901661,910

P. 58
23 Liquidity risk (continued)
Contractual liquidity profile of financial liabilities
The following tables present the Banking Group's financial liabilities by relevant maturity groupings based upon contractual
maturity date. The amounts disclosed in the tables represent undiscounted future principal and interest cash flows. As a result,
the amounts in the tables below may differ to the amounts reported on the consolidated statement of financial position.
The contractual cash flows presented below may differ significantly from actual cash flows. This occurs as a result of future
actions by the Banking Group and its counterparties, such as early repayments or refinancing of term loans and borrowings.
Deposits and other public borrowings include customer savings deposits and transactional accounts, which are at call. These
accounts provide a stable source of long term funding for the Banking Group.
On0-66-121-22-55+
$000'sDemandMonthsMonthsYearsYearsYearsTotal
June 2022
Non - derivative financial liabilities
Retail Deposits892,6122,028,225561,468103,19241,655-3,627,152
Other borrowings-368,9267,251397,859--774,036
Due to related parties-1,535----1,535
Lease liabilities-1,2821,2922,6156,9854,91117,085
Other financial liabilities-47,510----47,510
Total non - derivative financial liabilities892,6122,447,478570,011503,66648,6404,9114,467,318
Derivative finanical liabilities
Inflows from derivatives-5,0071,7593,505813-11,084
Outflows from derivatives-3,8933,2276,621839-14,580
Total derivative financial liabilities-(1,114)1,4683,11626-3,496
Undrawn facilities available to customers272,735-----272,735
Undrawn committed bank facilities132,221-----132,221
June 2021
Non - derivative financial liabilities
Retail Deposits974,9841,324,902560,232292,09191,107-3,243,316
Other borrowings-116,9446,468264,639128,489-516,540
Due to related parties-3,210----3,210
Lease liabilities-1,3081,3202,6637,6057,08519,981
Other financial liabilities-16,663----16,663
Total non - derivative financial liabilities974,9841,463,027568,020559,393227,2017,0853,799,710
Derivative financial liabilities
Inflows from derivatives-14,25161080012-15,673
Outflows from derivatives-16,7502,1741,31616-20,256
Total derivative financial liabilities-2,4991,5645164-4,583
Undrawn facilities available to customers208,855-----208,855
Undrawn committed bank facilities191,850-----191,850

P. 59
24 Interest rate risk
The Banking Group's market risk is derived primarily of exposure to interest rate risk, predominantly from raising funds through
the retail and wholesale deposit market, the debt capital markets and committed and uncommitted bank funding, securitisation
of receivables, and offering loan finance products to the commercial and consumer market in New Zealand and Australia.
The Banking Group’s exposure to market risk is governed by a policy approved by the Board and managed by the ALCO. This
policy sets out the nature of risk which may be taken and aggregate risk limits, and the ALCO must conform to this. The objective
of the ALCO is to derive the most appropriate strategy for the Banking Group in terms of the mix of assets and liabilities given its
expectations of the future and the potential consequences of interest rate movements, liquidity constraints and capital
adequacy.
The objective of the Banking Group’s interest rate risk policies is to limit underlying net profit after tax (NPAT) volatility. The
measurement comprises net interest income the Banking Group generates from its interest earning assets and interest bearing
liabilities.
The exposure to net interest income comes from a reduction in margins on interest earning assets or interest bearing liabilities
and is managed when setting rates by taking into consideration wholesale rates, liquidity premiums, as well as appropriate
lending credit margins.
An analysis of the Banking Group’s sensitivity to an increase (+) or decrease (-) in market interest rates by 100 basis points (BP) is
as follows. An (+)/(-) to market interest rates of 100 BP would result in a $0.7 million (+)/(-) to NPAT (2021: $0.2 million (+)/(-))
with a corresponding impact to equity.
The Banking Group also manages interest rate risk by:
Monitoring maturity profiles and seeking to match the re-pricing of assets and liabilities;
Monitoring interest rates daily and regularly (at least monthly) reviewing interest rate exposures; and
Entering into derivatives to hedge against movements in interest rates.

P. 60
24 Interest rate risk (continued)
Contractual repricing analysis
The interest rate risk profile of financial assets and liabilities that follows has been prepared on the basis of maturity or next
repricing date, whichever is earlier.
Non-
0-33-66-121-22+Interest
$000'sMonthsMonthsMonthsYearsYearsBearingTotal
June 2022
Financial assets
Cash and cash equivalents221,460----9221,469
Investments1,56885451,14491,974128,6721,502275,714
Finance receivables1,730,148178,756323,766558,256910,39960,9063,762,231
Finance receivables - reverse mortgages721,264-----721,264
Due from related parties-----1,5401,540
Derivative financial assets-----44,48744,487
Other financial assets-----175175
Total financial assets2,674,440179,610374,910650,2301,039,071108,6195,026,880
Financial liabilities
Deposits2,194,973684,378546,71899,19638,32533,5543,597,144
Other borrowings548,48878,911-121,191-888749,478
Derivative financial liabilities-----6,3356,335
Due to relate
[TRUNCATED]

Heartland market update Heartland Group Holdings (“HGH”) – Trading Halt Lifted

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