HGH Annual Report, and announces change to senior manager

Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | heartlandgroup.info

NZX/ASX release
29 September 2023

Heartland publishes Annual Report and announces change to
senior manager

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) has today published its Annual
Report for the year ended 30 June 2023 (FY2023).

Heartland is pleased to release its Annual Report for FY2023. The Annual Report is available
electronically from heartlandgroup.info, and will be sent to shareholders if requested. A copy is
attached to this announcement.

Heartland announces new Chief Compliance & Sustainability Officer role
Heartland is also pleased to announce the appointment of Michael Drumm (currently Group Chief
Operating Officer) to the new role of Chief Compliance & Sustainability Officer of Heartland Bank
Limited (Heartland Bank) (NZX: HBL), with effect from 1 October 2023 (subject to Reserve Bank of
New Zealand non-objection). Michael will cease to be a senior manager of Heartland on this date.

In this role, Michael will have responsibility for creating a dedicated regulatory affairs and
compliance function within Heartland Bank, in recognition of the growing size and complexity of
Heartland Bank’s business and the regulatory environment in which it operates. He will also have
responsibility for progressing the various initiatives within Heartland’s sustainability framework –
including embedding the incoming Climate-Related Disclosures regime.

– ENDS –

The person who authorised this announcement:

Leanne Lazarus
Chief Executive Officer, Heartland Bank

For further information and media enquiries, please contact:

Nicola Foley
Group Head of Communications
+64 27 345 6809
nicola.foley@heartland.co.nz
Level 3, Heartland House, 35 Teed Street, Newmarket, Auckland, New Zealand

---

Te Pūrongo ā-Tau
Annual Report 2023

Te Rārangi Upoko
Contents
This Annual Report of Heartland Group Holdings Limited (Heartland) is dated
29 September 2023 and is signed on behalf of the Board of Directors by:
Gregory Tomlinson
Chair and Non-Executive Director
Jeffrey Greenslade
Chief Executive Officer (CEO) and Executive Director
01 Year in review
Remembering Geoff Ricketts
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Chair’s report
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
CEO’s report
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
FY2023 results at a glance
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Becoming a bank in Australia
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Creating efficiency through digitalisation
. . . . . . . . . . . . . . . . . . . . . .18
02 Who we are
Our business
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Heartland Group Board
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Heartland Bank Board
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Management
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
03 Sustainability
Introduction
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Environment
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
People
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
Financial wellbeing
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
04 Disclosures
Corporate governance
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
Directors’ disclosures
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
Executive remuneration
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
Shareholder information
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
Other information
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
05 Our financial results
Financial commentary
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
Financial statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
Auditor’s report
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154
06 Directory
Directory
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162

01
YEAR IN REVIEW

01 Year in review
2
In March 2023, Heartland was deeply
saddened by the passing of Geoff Ricketts,
an esteemed leader who left behind an
incredible legacy. As a founding Director,
Geoff was pivotal in bringing Heartland
together and guiding the business to
become what it is today.
He Hokinga
Mahara ki a
Geoff Ricketts
Remembering
Geoff Ricketts

3
In a 2019 Heartland-recorded interview, Geoff
described the formation of Heartland with
his business partner Sir Christopher Mace . In
2007, before the global financial crisis (GFC),
they took a shareholding in Southern Cross
Building Society (SCBS) and Geoff soon
became Chair .
“We saw an opportunity to establish a
bank in New Zealand.” While the building
societies had lots of deposits, the banks were
leading the market in forward mortgages.
To establish a bank, they needed to identify
a market in which they could compete for
lending. “So, we looked at other alternatives.”
As the GFC began to hit through 2007,
a majority shareholder in Canterbury
Building Society (CBS) put their shares
(approximately 11%) on the market. These
were purchased by SCBS, creating a
relationship between the South Island and
North Island building societies .
At that time, Jeff Greenslade, now CEO of
Heartland, had become CEO of MARAC
Finance. Geoff took the opportunity to
suggest to Jeff that lending from deposits
would be more sustainable than the
wholesale funding MARAC Finance was
leveraging . In 2011, CBS, SCBS and MARAC
Finance merged to become Heartland New
Zealand Limited (HNZ), and subsequently
acquired PGG Wrightson Finance .
“It was difficult times in the GFC. In many
ways the three parties were a coalition of the
willing because they knew they were stronger
together, and the best chance to get a
banking licence was to put it all together and
create the merger.”
Geoff described the opportunity for Heartland
was to not have a big branch network, to
lend through intermediaries, offer products
through digital platforms, and operate in
markets not serviced by the big banks.
“And it worked.” Heartland listed on the NZX
and became a registered bank in 2012.
Geoff was appointed Chair of Heartland’s
Board in August 2013 and stood down as
Chair on 20 February 2023 due to illness . He
remained a valued Director until his passing
on 10 March 2023 .
In his time as Chair, HNZ evolved to become
the Heartland it is today, now a trans-Tasman,
dual-listed financial services company
providing banking and financial services to
more than 130,000 customers, with a market
cap in excess of $1 billion .
Through his experience as Chair of Lion
Nathan, Geoff was a strong advocate for
Heartland’s expansion into Australia . Since
the 2014 acquisition of its reverse mortgage
business, the Australian market has served
Heartland well and continues to present
significant opportunity for growth.
Geoff’s contribution to Heartland extended
well beyond strategic leadership and
governance of the commercial business .
A strong supporter of community and
philanthropic activities, Geoff also chaired
the Heartland Trust and was passionate
about the opportunity to give back to the
communities in which Heartland operated .
Geoff described Heartland’s future as “strong
and bright”. “We will continue to operate in
the asset space and differentiated markets
from the [major] banks. We will continue to
attract deposits readily... and we’re becoming
a digital bank, which is where the future is.”
Jeff Greenslade, CEO, recalls Geoff’s
commitment to that future . “On multiple
occasions he told me he would remain as
Chair until Heartland’s profit reached $100
million . He very nearly saw that transpire, and
I think he would be proud of the growth we
have achieved.”
Geoff’s legacy and vision for Heartland
continues as a source of influence as the
company embarks on the next phase of its
growth journey . Watch the full interview with
Geoff about the origins of Heartland and his
vision for the future:
The Origins of Heartland,
with Geoff Ricketts
(click or scan the code)
01
02
03
05
06
04

01 Year in review
4
1 All figures in this Annual Report are in NZD unless otherwise stated.
2 All comparative results are based on the audited full year consolidated financial statements of the Group for FY2022.
3 Financial results are presented on a reported and underlying basis. Reported results are prepared in accordance with NZ GAAP and include
the impacts of positive and negative one-offs, which can make it difficult to compare performance. Underlying results (which are non-GAAP
financial information) exclude impacts of certain one-offs. This is intended to allow for easier comparability between periods, and is used
internally by management for this purpose . Refer to ‘
Financial commentary’ on page 72 of this Annual Report for a summary of reported and
underlying results. A detailed reconciliation between reported and underlying financial information, including details about FY2023 one-
offs, is set out on page 42 of Heartland’s FY2023 investor presentation available at heartlandgroup.info . General information about the use
of non-GAAP financial measures is set out on page 4 and 38 of the FY2023 investor presentation.
After the very sad passing of Geoff Ricketts, I am honoured
to chair Heartland’s Board. Heartland’s performance for the
financial year ended 30 June 2023 (FY2023) is one we believe
Geoff would have been proud of.
On behalf of the Board, I am pleased to report that Heartland
and its subsidiaries (the Group) achieved a net profit after
tax (NPAT) of $95.9 million¹ for FY2023. This was an increase
of $0.7 million (0.8%) compared with the financial year ended
30 June 2022 (FY2022)². On an underlying³ basis, FY2023
NPAT was $110.2 million, an increase of $14.1 million (14.6%)
compared with the FY2022 underlying NPAT.
Te pūrongo a te kaiwhakahaere poari
Chair’s report
Greg Tomlinson
Chair and Non-
Executive Director

5
4 Subject to obtaining the requisite regulatory approvals .
5 Subject to Reserve Bank of New Zealand (RBNZ) approval .
Heartland’s underlying results exclude the
impacts of one-off and technical non-cash
items such as fair value changes on equity
investments, and the de-designation of
derivatives . This is intended to allow for easier
comparability between periods as these
items are not considered part of business
as usual activity and therefore are not
representative of Heartland’s core earnings .
Board and management
updates
Sadly, in March 2023 Heartland mourned the
loss of Geoff Ricketts, an exceptional Director
and Chair. Geoff was a strong contributor,
mentor and friend to the Heartland family .
He was a truly remarkable leader, generous
with his time and wisdom, and always leading
from the front. As a founding director, Geoff’s
outstanding commitment to Heartland
enabled the business to become the trans-
Tasman financial services organisation it is
to d ay .
Previously Deputy Chair, I was appointed
Chair by the Board when Geoff stood down as
Chair on 20 February 2023 due to ill health .
On 1 August 2022, Leanne Lazarus joined
Heartland Bank Limited (Heartland Bank) as
CEO . Leanne joined Heartland from her role
as CEO and Executive Director of Westpac
Life Limited, Westpac New Zealand Limited’s
(Westpac NZ) insurance entity . Leanne has
30 years of global experience in banking and
financial services, including having held a
range of executive positions across Westpac
NZ and the ANZ Banking Group.
Leanne’s extensive experience in operations
and technology has already made a positive
contribution to advancing Heartland Bank’s
digitalisation strategy and commitment to
enhancing frictionless service for customers .
Previous Heartland Bank CEO, Chris Flood,
moved to the role of Deputy CEO of Heartland,
taking responsibility for Heartland’s growth
across Australia, applying Heartland Bank’s
successful growth model to Heartland’s
Australian entities . In this position, Chris has
played a key role in the proposed acquisition
of Challenger Bank Limited (Challenger
Bank) in Australia.⁴
During the year, Keira Billot moved from the
role of Chief People & Brand Experience
Officer, Heartland Bank, to the role of General
Manager – Retail & Reverse Mortgages . Lana
West’s role of Group Chief People & Culture
Officer, Heartland, expanded to include
people and culture responsibilities across
the Group . Heartland also recently welcomed
to its management team, Phoebe Gibbons,
General Counsel, Heartland .
I am pleased to announce two new roles:
Chief Performance Officer and Chief
Compliance & Sustainability Officer.
Aleisha Langdale, previously Head of
Strategic Analysis & Execution has been
appointed to the role of Chief Performance
Officer, Heartland. In this role, Aleisha has
responsibility for ensuring Heartland’s
product distribution and features are aligned
to Heartland’s strategic vision across New
Zealand and Australia. This includes ensuring
the effective execution of strategic initiatives
to reduce friction for customers through
automation .
Michael Drumm, currently Group Chief
Operating Officer, Heartland, will be
appointed to the role of Chief Compliance &
Sustainability Officer, Heartland Bank, with
effect from 1 October 2023.⁵ Michael will
have responsibility for creating a dedicated
regulatory affairs and compliance function
within Heartland Bank, in recognition of the
growing size and complexity of Heartland’s
business and the regulatory environment
in which it operates . He will also have
responsibility for progressing the various
initiatives within Heartland’s sustainability
framework – including embedding the
incoming Climate-Related Disclosures
regime .
Sustainability
Heartland’s sustainability strategy continues
to evolve as it matures . Its sustainability
framework is built on three pillars:
environment, people and financial wellbeing.
01
02
03
05
06
04

01 Year in review
6
6 Heartland’s registered charitable trust that is independent from, but closely supported by, Heartland .
Significant progress continued against
each of these pillars in FY2023 . Regarding
environmental sustainability, Heartland
developed an environmental risk screening
tool to understand the sustainability of its
larger business and rural borrowers in the
credit decisioning process, which has now
been embedded into operation with frontline
employees .
Heartland was proud to continue its Manawa
Ako internship programme. Since the
programme began in 2017, more than 110
Māori and Pasifika interns have participated
and provided valuable insight to enable
Heartland to become a welcoming work
environment to all cultures and ethnicities .
Funded through Heartland dividends, the
Heartland Trust⁶, was able to give more than
$710,000 back to the New Zealand community
through various community groups and
organisations in FY2023 .
Meanwhile, Heartland continued to offer
competitive and flexible products to meet
the needs of its customers – including
enabling more than 48,000 New Zealanders
and Australians to live a more comfortable life
by releasing equity from their homes through
a reverse mortgage .
Read more in the
Sustainability section on
page 29 .
Regulatory update
Heartland continues to monitor and prepare
for the significant volume of regulatory
change in New Zealand.
In June 2023, it was announced that the
Commerce Commission (ComCom) would
conduct a market study into any factors that
may affect competition for the supply or
acquisition of personal banking services. A
draft Preliminary Issues Paper for the market
study was published on 10 August 2023 which
sets out the context and proposed focus
areas of the study . It is currently proposed
that the study will focus on deposit accounts
(transaction, savings, and term deposits,
including overdraft facilities) and home loans .
The ComCom is engaging with stakeholders
and conducting information gathering, with
a final report on its findings due 20 August
2024 which will include recommendations
that identify ways to improve competition
in the sector. Heartland Bank welcomes the
opportunity to participate in the market
s t u d y .
The Financial Markets (Conduct of
Institutions) Amendment Act 2022 (Conduct
Act) will come into force on 31 March 2025,
following a transitional period . The Conduct
Act applies to registered banks, licensed
insurers and licensed non-bank deposit
takers. 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 (including the
prohibition of sales incentives based on
volume or value targets). Heartland Bank is
preparing for licensing and compliance with
the Conduct Act .
The Deposit Takers Act (DT Act) received
royal assent (and became law) on 6 July
2023 . The DT Act strengthens the regulatory
framework for all institutions that take
deposits (including Heartland Bank) and
introduces a new depositor compensation
scheme (DCS), overseen by the RBNZ.
Very little of the DT Act comes into force
immediately, but Heartland Bank has begun
considering the impact of the DT Act on
its operations and is actively participating
in submissions on the DCS and other
regulations, guidance and prudential
standards relating to the DT Act . The DT Act is
expected to be fully in force by around 2028.
Initial changes to the Credit Contracts
and Consumer Finance Act 2003 (CCCFA)
came into force on 1 December 2021, with
additional changes effective 7 July 2022.
Heartland Bank implemented new processes
and technologies to enable it to comply with
these changes . Following the completion of
the New Zealand Government’s investigation
into the impact of the December 2021

7
changes, more amendments to the CCCFA
came into force in May 2023 . Heartland
Bank has further amended its processes to
reflect these most recent amendments. On
8 August 2023, the Government announced
further changes to the CCCFA, including
a wider review of the CCCFA with terms of
reference to be announced in due course .
In July 2021, the New Zealand Government
announced it would implement a legislative
framework for a new consumer data
right (CDR), with a decision announced
in November 2022 to designate banks
into the new regime first. The Ministry of
Business, Innovation and Employment
recently consulted on an exposure draft of
the Customer and Product Data Bill . A CDR
in the banking sector (in other words, ‘open
banking’) would allow customers to consent
to share their banking data with third parties.
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 financial year
ending 30 June 2024 (FY2024) .
In Australia, Heartland continues to
monitor changes to Australian regulatory
requirements for its existing businesses, and
is preparing for the acquisition of Challenger
Bank (subject to the requisite regulatory
approvals), which is an Australian Prudential
Regulation Authority (APRA) regulated
authorised deposit-taking institution (ADI) .
Dividend
The Board resolved to pay a fully imputed
final dividend of 6.0 cents per share (cps)
on Wednesday 20 September 2023 to all
shareholders on Heartland’s register at
5.00pm NZST on Wednesday 6 September
2023 . Together with the interim dividend, the
total FY2023 dividend was 11 .5 cps (up 0 .5 cps
on FY2022). This represents a full year payout
ratio of 85% which compares to the average
over the last three years of 76% .
Outlook
The year ahead will be significant for
Heartland as it seeks to complete the
acquisition of Challenger Bank, subject
to regulatory approval, and continues its
commitment to digitalisation and frictionless
service for customers .
FY2023 proved the resilience of Heartland’s
lending portfolio. With significant ambitions
for the year ahead, the Board is confident in
Heartland’s ability to generate strong growth
and profitability as it continues to deliver
against its strategy to provide best or only
products through scalable digital platforms .
Heartland expects NPAT for FY2024 to be
within the guidance range of $116 million
to $122 million, excluding any impacts of
fair value changes on equity investments
held, the impact of the de-designation
of derivatives, and any costs related to
the acquisition of Challenger Bank, which
remains subject to regulatory approval . As
the acquisition nears completion, guidance
will be updated to reflect the impact of
Challenger Bank becoming part of Heartland.
On behalf of the Board, I would like to take this
opportunity to acknowledge the continued
support of our shareholders. I would also like
to thank Heartland’s management team and
its people for their resilience and customer
commitment through another challenging
y e a r .
Greg Tomlinson
Chair of the Board
01
02
03
05
06
04

01 Year in review
8
1 Receivables include Reverse Mortgages .
2 Excludes the impact of changes in foreign currency exchange (FX) rates .
3 Underlying CTI ratio refers to the CTI ratio calculated using underlying results. When calculated using reported results, the CTI ratio was
44 .9%, up 126 bps compared with FY2022 . For more information, see page 4 of Heartland’s FY2023 full year results investor presentation
available at heartlandgroup.info .
FY2023 was marked with sadness for Heartland as we mourned the loss
of our Chair, Geoff Ricketts, in March 2023. Geoff was a founding director
of Heartland and played a significant role in shaping the organisation we
have become. Geoff’s strategic leadership, governance experience and
wise advice to the Board and management are sorely missed.
E tohua ana te FY2023 hei tau hinapōuri i Heartland i te ngarohanga atu
o tō tātou kaiwhakahaere matua, o Geoff Ricketts, i te Māehe 2023. Ko
Geoff tētahi o ngā toihau nō te tīmatanga o Heartland, ka mutu, i tāpua
tana mahi e hua mai ai te whakahaere e mōhiotia nei e tātou i ēnei rā
nei. E ongeonge katoa ana i a Geoff me tana hautū whai rautaki, i ana
wheako whakahaere, i ana kupu ārahi matatau anō hoki ki te Poari me
ngā kaiwhakahaere.
Te pūrongo a te kaiwhakahaere matua
CEO’s report
Jeff Greenslade
CEO

9
Amidst a challenging economic background
in New Zealand and Australia, Heartland
achieved a pleasing result in FY2023 . The
FY2023 result was driven by growth in gross
finance receivables (Receivables)¹ of 10.1%
($625.5 million)² on FY2022, to reach $6.8
billion . This demonstrated the resilience of our
‘best or only’ product strategy and continued
our track record of strong growth in core
lending portfolios .
Strategic vision
Sustainable growth through differentiation
based on a ‘best or only’ product strategy,
delivered through scalable digital platforms,
continues to be Heartland’s guiding vision .
Since forming, Heartland’s NPAT has more
than tripled, from $23 .6 million at 30 June 2012
to $95 .9 million ($110 .2 million on an underlying
basis) at 30 June 2023 . This momentum
continues, underpinned by three drivers:
1. Business as Usual Growth – a 10 .1%
increase in underlying balance sheet
growth was achieved
2. Frictionless Service at the Lowest Cost
– continued reduction in underlying cost
to income (CTI) ratio, down 53 basis points
(bps) to 42 .0%³
3. Expansion in Australia – signed a share
purchase agreement for the acquisition of
Challenger Bank, conditional on regulatory
approvals .
Business as Usual Growth
Strong growth continued for New Zealand
and Australian Reverse Mortgages, with
compound annual growth rates for the
five-year period from 1 July 2018 to 30 June
2023 of 16.4% and 22.8% respectively.
Conservative loan-to-value ratios (LVRs)
have enabled Reverse Mortgage customers
in both countries to weather the challenging
combination of falling house prices and higher
interest rates over the last year . As at 30
June 2023, the average weighted LVR for New
Zealand and Australian Reverse Mortgages
respectively were 21.3% (up from 18.4% at 30
June 2022) and 21.5% (up from 20.5% at 30
June 2022).
I waenga i te horopaki ōhanga uaua i
Aotearoa me Ahitereiria, i eke a Heartland
ki tētahi taumata waingōhia i te FY2023.
He mea kōkiri ngā hua o te FY2023 nā te
tipuranga o te tapeke o ngā moni kua tau
mai (Receivables)¹, arā, te 10.1% (ko te
$625.5 miriona)² i te FY2022, e eke ai ki te
$6.8 piriona. Nā konei, i whakatinanahia ai te
manawaroa o tā tātou rautaki huataonga o
‘te mea pai katoa, te mea kotahi rānei’, me
te haerenga tonutanga o tō tātou hītori o te
marohi o te tupu i ngā kōpaki moni taurewa
matua .
Te tirohanga ā-rautaki
Ko te tipuranga toitūtanga mā roto i ngā ara
tītore e hāngai ana ki te rautaki huataonga
o ‘te mea pai katoa, te mea kotahi rānei’, i
kōkiritia ai mā roto i ngā pae matihiko e taea
ana te whakawhānui, koia te tirohanga e ārahi
nei i a Heartland .
Nō tōna pūaotanga, kua reatoru te NPAT a
Heartland, i te $23 .6 miriona i te 30 o Hune
2012 ki te $95.9 miriona (ki te $110.2 miriona
nā runga i ngā matapae ā-roto) i te 30 o Hune
2023. E rere pēnei tonu ana, nā runga i te
tūāpapa o ngā kaikōkiri e toru:
1. Te Tipuranga ā-Pakihi o Ia Rā – i 10 .1% te
pikinga o te tapeke pūtea nā runga i ngā
matapae ā-roto
2. Te Ratonga Waku-kore e Māmā ake nei
te Utu – i heke tonu te ōwehenga o ngā
utu ā-roto ki ngā moni whiwhi (CTI), i 53
piro tūāpapa (bps) ki te 42.0%³
3. Te Whakawhānuitanga i Ahitereiria –
he kirimana hoko pānga kua waitohua
mō te hononga o Challenger Bank, ki te
whakaaetia ngā waeture.
Te Tipuranga ā-Pakihi o Ia Rā
I rere tonu taua tipuranga i ngā Reverse
Mortgages i Aotearoa me Ahitereiria, e hua
nei ngā pāpātanga o te huamoni whakaputu
i ngā tau e rima i te 1 o Hūrae 2018 ki te 30 o
Hune 2023, o te 16.4% me te 22.8%. Mā roto i
1 E whai wāhi ana ki ngā moni kua tau mai ngā Reverse Mortgages.
2 Kāore e whai wāhi ana te pānga o ngā panonitanga ki te pāpātanga o te whakawhiti moni rāwaho (FX) .
3 E hāngai ana te ōwehenga CTI ā-roto ki te ōwehenga CTI ka tātaihia mā roto i hua ā-roto. I te tātaihanga nā runga i ngā hua o ngā pūrongo,
ko te 44.9% te ōwehenga CTI, 126 bps te pikinga tērā i te FY2022. E whai pārongo anō ai, tirohia te whārangi 4 o tā Heartland whakapuakanga
FY2023 mō ngā hua o te katoa o te tau e kitea nei i heartlandgroup.info .
01
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01 Year in review
10
4 Based on data from the Motor Industry Association of New Zealand on new and used vehicle sales from motor vehicle dealers.
5 The average CTI ratio of New Zealand’s main domestic non-major banks excluding Heartland (The Co-operative Bank, Kiwibank, SBS and TSB)
was 69.2% for the 12 months to 30 June 2023 (data from the RBNZ Financial Strength Dashboard, valid as at 27 September 2023). The average
CTI ratio of Australia’s major banks (ANZ, CBA, NAB and Westpac) was 45.2% for their most recent respective annual reporting periods.
6 Excluding the impact of changes in FX rates.
Heartland Bank’s Motor Finance book
is sensitive to economic conditions
regarding arrears, but is more correlated
to unemployment with respect to losses .
Consequently, while arrears trended upward
across the year to 3 .95% as at 30 June 2023,
the level of losses remained within cyclical
norms and the portfolio performed as
expected .
Pleasingly, as the New Zealand vehicle market
experienced a 6 .2% decrease in total new
and used car sales in the period⁴, Heartland’s
Motor Finance new business volumes
increased by 11 .6% from FY2022, with overall
growth in FY2023 of 13 .5% due to lower early
repayments than expected .
Market share gains and a shift towards higher
quality loans resulted in net interest margin
(NIM) compression . Heartland’s reduction
in risk appetite for unsecured personal and
unsecured business lending also contributed
to this . Business and Rural Relationship
lending also experienced larger repayments
of higher risk loans. NIM is expected to be
subject to similar conditions including the
potential of increased deposit rates . However,
it is anticipated that NIM will stabilise in the
financial year ending 30 June 2025 (FY2025)
as lower margin loans are repaid and replaced
in Asset Finance and Motor Finance .
Further information about the financial
performance of Heartland’s lending portfolios
and funding activity is set out in ‘
Financial
commentary
’ on page 72 .
Frictionless Service at the
Lowest Cost
Differentiation through digitalisation has been
a key part of Heartland’s strategy for several
years now . The aim is to remove friction
for customers, while creating scale and
efficiencies by reducing the CTI ratio – which
can be used to measure the effectiveness of
digitalisation .
Through technology, Heartland has replicated
the scale of big banks. This is evidenced by
the CTI ratio, which improved by 53 bps on
FY2022 to 42 .0% on an underlying basis³ in
te ōwehenga o te taurewa ki te uara (LVR) e
pai ana, i puta ai ngā ihu o ngā kiritaki e whai
Reverse Mortgages ana i te karapipititanga
o te hekenga o ngā utu o ngā whare, me ngā
pāpātanga huamoni e nui ake ana, tēnā i te
tau kua hori. I te 30 o Hune 2023, ko te 21.3%
(he pikinga i te 18.4% i te 30 o Hune 2022) me
te 21.5% (he pikinga i te 20.5% i te 30 o Hune)
te LVR toharite mō ngā Reverse Mortgages i
Aotearoa me Ahitereiria .
E mārama ana tā Heartland Bank puka mō te
Motor Finance ki ngā āhuatanga o te ōhanga
me ngā utu tōmuri, engari e hāngai kē ana ki
te koremahi mō te taha ki ngā moningaro. Me
te aha, ahakoa i 3.95% te piki haeretanga o
ngā utu tōmuri puta noa i te tau i te 30 o Hune
2023, kāore i tawhiti atu ngā utunga i ngā
hurihanga māori, ka mutu, i eke ngā hua o ngā
kōpaki ki tērā i matapaetia ai.
E waingōhia ana, i tā te mākete waka o
Aotearoa whānui rongo i te 6.2% o te
hekenga o te hoko atu i ngā waka hou me
ngā waka oruoru i taua wā⁴, i 11.6% te pikinga
o te nui o ngā mahi tauhokohoko hou a
Heartland’s Motor Finance i te FY2022, i 13 .5%
ai te tipuranga whānui i te FY2023 nā te iti iho
o ngā utunga tōmua i tēnā i matapaetia ai.
Nā ngā pikinga ki ngā hea o te mākete me
te nekehanga e kounga ake ai ngā moni,
i whakakōpiritia ai te paenga o te tapeke
huamoni (NIM). Ko te hekenga o tō Heartland
taumata o te pai ki te tūraru mō ngā moni
taurewa herekore whaiaro, pakihi hoki
tētahi āhuatanga kua whai wāhi atu ki tēnei.
I nui ake hoki ngā whakahokinga moni mō
ngā moni taurewa o te Business and Rural
Relationship e kaha ake nei te tūraru. E ai
ki ngā matapae, ka pā mai ngā āhuatanga
ōrite ki te NIM tae ana ki te pikinga pea o ngā
pāpātanga kuhumoni. Heoi anō, ko te tikanga
ka tau te puehu ā te remu o FY2024 me te
tau ahumoni ka pau ā te 30 o Hune 2025
(FY2025), nā runga i ngā whakahokinga moni
ki ngā moni taurewa e iti iho nei ngā pae me
te whakakapinga hoki o aua moni taurewa
puta noa i te Asset Finance me te Motor
Finance .

4 E hāngai ana ki ngā raraunga a te Motor Industry Association of New Zealand mō te hokonga atu o ngā waka hou me ngā waka oruoru i ngā
toa hoko waka.
5 I 69.2% te ōwehenga CTI toharite o ngā pēke o Aotearoa ehara i te pēke matua, hāunga rā a Heartland (ko The Co-operative Bank, ko
Kiwibank, ko SBS, ko TSB hoki) mō te 12 marama ā te 31 o Māehe 2023 (nō te RBNZ Financial Strength Dashboard ngā raraunga, i tika i te 31 o
Hūrae 2023). I 45.2% te ōwehenga CTI toharite o ngā pēke matua o Ahitereiria (ko ANZ, ko CBA, ko NAB, ko Westpac hoki) i ā rātou pūrongo
ā-tau nō nā tata nei.
11
FY2023 – much lower than the average CTI
ratio of New Zealand’s main domestic non-
major banks and more comparable to the
average CTI ratio of Australia’s major banks.⁵
Digitalisation of Heartland’s products
and platforms continued through FY2023 .
Achievements included a 65% uplift in
Heartland Bank mobile app users from 1 July
2022, and the rollout of the Heartland Finance
Mobile App to Australian Reverse Mortgage
customers, with good rates of adoption within
a short timeframe (10% of customers had
access within one month) .
Heartland’s ambition now is to achieve an
underlying CTI ratio of less than 35% by the
financial year ending 30 June 2028 (FY2028)
through revenue growth and ongoing
automation and digitalisation .
Read ‘
Creating efficiency through
digitalisation
’ on page 18 for more on
Heartland’s underlying CTI ratio ambition .
Expansion in Australia
FY2023 was StockCo Australia’s first full
year as part of the Group . Macroeconomic
conditions resulted in lower dollars per head
on the balance sheet and a contribution to
FY2023 NPAT below the expected A$10-12
million (before any ongoing cost of acquisition
debt funding). However, the outlook for
FY2024 is positive as global demand for
Australian meat, mainly beef, increases .
Meanwhile, Heartland’s Australian Reverse
Mortgages continued to perform well,
with Receivables up 20.7%⁶ on FY2022.
Heartland has now supported more than
26,000 Australians to live a more comfortable
retirement with its Reverse Mortgages, and
maintained its position as the leading active
provider in Australia .
We remain focused on our ambitions for
growth in Australia through the acquisition
of an ADI . In FY2023, Heartland signed a share
purchase agreement for the acquisition of
Challenger Bank from Challenger Group, and
began engagement with the RBNZ and APRA
on seeking the requisite regulatory approvals
to complete the acquisition .
E takoto ana ētahi pārongo atu anō mō ngā
whakatutukihanga ā-ahumoni a ngā kōpaki
moni taurewa a Heartland me ngā mahi pūtea
ki te
‘He kōrero ahumoni’ i te whārangi 72.
Te Ratonga Waku-kore e Māmā
ake nei te Utu
Mō te hia tau, ko te tītoretanga mā roto i te
whakamatihikotanga tētahi o ngā wāhanga
matua o te rautaki a Heartland. E whai
ana tēnei kia unuhia ngā wakuwakutanga
ki ngā kiritaki, e whakawhānuitia ai ngā
pānga, e whaihua ake ai hoki mā roto i te
whakahekenga o te ōwehenga CTI – e
whakamahia nei hei ine i te whaihua o te
whakamatihikotanga.
Mā roto i te hangarau, Heartland kua toaitia
te whakawhānuitanga a ngā pēke nui. E
taunakitia ana tēnei ki te ōwehenga CTI, i 53
bps te pikinga i tēnā i te FY2022 kia eke ki te
42.0% nā runga i ngā matapae ā-roto³ i te
FY2023 – e tino iti iho nei te ōwehenga CTI
toharite i tēnā o ngā pēke o Aotearoa ehara i
ngā pēke matua, e āhua ōrite nei hoki ki ēnā o
ngā pēke matua o Ahitereiria.⁵
I rere tonu te whakamatihikotanga o
ngā huataonga me ngā pae a Heartland
i te roanga o te FY2023. Ko ētahi o ngā
whakatutukihanga, ko te 65% o te pikinga
o te hunga e whakamahi ana i te Heartland
Bank mobile app mai i te 1 o Hūrae 2022, me
te horahanga o te Heartland Finance Mobile
App ki ngā kiritaki e whai Australian Reverse
Mortgage ana, e pai nei ngā pāpātanga o te
hunga e whakamahi nei i roto i te wā poto (ko
te 10% i whai wāhi atu i roto i tētahi marama).
Ko te wawata o Heartland ināianei,
ko te 35% o te whakahekenga o te
ōwehenga CTI o ngā hua ā-roto ā mua
i te tau ahumoni ka pau ā te 30 o Hune
2028 (FY2028) mā roto i te tipuranga
o ngā moniwhiwhi me te haeretanga
tonutanga o te whakaaunoatanga me te
whakamatihikotanga.
Pānuitia te
‘Huanga mai o te whaihuatanga
mā roto i te whakamatihikotanga’ kei te
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01 Year in review
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As we work through the regulatory approval
process, which is time intensive, our sights
are on the growth opportunities that will be
possible upon completion . You can read more
about the acquisition and our Australian
growth aspirations in ‘
Becoming a bank in
Australia
’ on page 16 .
Looking forward
The focus for the year ahead will be on growth
across Heartland’s core lending portfolios:
Reverse Mortgages, Livestock Finance, Motor
Finance and Asset Finance . As we continue to
pursue our ambition of a reduced underlying
CTI ratio, it is expected that growth will be
assisted by increased digitalisation and
automation .
We expect economic conditions to remain
challenging throughout FY2024, with ongoing
pressure on margins and impairments . In this
environment, Heartland’s risk appetite for
higher yielding segments (such as unsecured
lending) will be reduced . Changes in asset
mix, including the ongoing growth in Reverse
Mortgages and the replacement of lower
margin Asset Finance and Motor Finance, is
anticipated to strengthen credit quality and
profitability prospects for FY2025.
Heartland has more than tripled its NPAT
since 30 June 2012 . Through a continued
focus on the execution of Heartland’s
strategic vision and its underlying CTI ratio
ambition, this remains the ambition .
After another challenging year, our Heartland
people continued to show their resilience
and commitment to our customers and
shareholders. I would like to thank our
Heartland whānau for living our mātāpono
(values) throughout the year, and wish to
thank our shareholders for their continued
support .
Ngā mihi nui,
Jeff Greenslade
CEO
whārangi 18 e rongo kōrero atu anō ai mō te
wawata ōwehenga tūāpapa CTI o Heartland.
Te Whakawhānuitanga i
Ahitereiria
Ko te FY2023 tō StockCo Australia’s tau
tuatahi i roto i te Rōpū. Nā runga i ngā
āhuatanga o te ōhanga whārahi i heke
iho ai ngā tāra i ia tangata i te puka kaute,
i heke ai hoki te NPAT o te FY2023 i tēnā i
matapaetia ai, i te A$10-12 miriona (i mua i
ngā pūtea taurewa e rere tonu ana ka ahu i te
hokotanga). Heoi, e pai ana te tirohanga atu
ki te FY2024 nā runga pikinga o te pīrangi o te
ao ki ngā mīti, ā, ko te nuinga he mīti kau.
Manohi anō, i pai ngā hua o ngā Australian
Reverse Mortgages a Heartland, i 20.7%⁶ ngā
pikinga i ō te FY2022. Ināianei, kua tautoko a
Heartland i te 26,000 kainoho o Ahitereiria
kia hāneanea ake ai te rītaiatanga nā runga
i ana Reverse Mortgages, e toitū tonu
nei tana tūnga hei kaituku moni taurewa
whakaihuwaka i Ahitereiria.
E pūmau tonu ana tō mātou aro ki te pīrangi
kia tipu tonu i roto o Ahitereiria mā roto mai
i te hokotanga o ADI. I te FY2023, i waitohu
a Heartland i te kirimana hoko pānga kia
hokona ai a Challenger Bank i te Challenger
Group, i tīmata ai hoki te toro atu ki te RBNZ
me APRA e kimihia ai ngā whakaaetanga
ā-waeture e tutuki ai te hokotanga.
I a tātou e whai nei i te tukanga waeture, e nui
nei te kaikai i te wā, e ahu ana te titiro ki ngā
ara wātea kia tipu ai ka hua mai ā te taunga
o te hokotanga. Kia pānuitia te roanga ake
o ngā kōrero mō te hokotanga me ō mātou
wawata tipuranga i Ahitereiria, tirohia te
‘Huanga mai hei pēke i Ahitereiria’ kei te
whārangi 16.
Te anga whakamua
Ko te arotahi mō te tau e tū mai nei ko te
tipuranga puta i ngā kōpaki moni taurewa
matua a Heartland: ko ngā Reverse
Mortgages, ko te Livestock Finance, ko te
Motor Finance me te Asset Finance. I a tātou
6 Hāunga rā te pānga o ngā panonitanga ki ngā pāpātanga FX.

13
e whai tonu nei ki te whakaheke i te ōwehenga
CTI ā-roto, e matapaetia ana ka hāpaitia
te tipuranga mā te whakakahatanga o te
whakamatihikotanga me te whakaaunoatanga.
E matapaetia ana ka uaua tonu ngā āhuatanga
ā-ōhanga puta no ai FY2024, ka mau tonu
hoki ngā pēhanga ki ngā pae me te hekenga
wawe o te wāriu. I tēnei taiao, ka noho mū tonu
tō Heartland taumata o te pai ki ngā tūraru
tapahanga huatuku nui (pēnei i ngā moni
taurewa herekore). I tōna tikanga, mā ngā
panonitanga ki ngā hanumi rawa, tae ana ki te
tipu tonutanga i ngā Reverse Mortgages me
te whakakapinga o ngā pae iti iho o te Asset
Finance me Motor Finance, e pakari ake ai te
kounga o te moni taurewa me te whai monihua ā
te FY2025 .
Nā runga i te aro tonu ki te whakatinanatanga
o te tirohanga ā-rautaki, me ōna wawata mō te
ōwehenga CTI ā-roto, kei kō atu i te reatoru ngā
hua o te NPAT i te 30 o Hune 2012, ā, e pēnei tonu
ana te wawata .
I muri iho i tētahi tau wero anō, i whakatinana
tonu ō tātou tāngata i te manawaroa me te ū ki
ā tātou kiritaki me te hunga whaipānga. E mihi
ana ki te whānau o Heartland e whakatinana nei
i ō tātou mātāpono i te roanga o te tau, me ngā
mihi hoki ki te hunga whaipānga e tautoko tonu
mai nei .
Ngā mihi nui, nā
Jeff Greenslade
Te Kaiwhakahaere Matua
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Note: Financial results are presented on a reported and underlying basis. Reported results are prepared in accordance with NZ GAAP and include
the impacts of positive and negative one-offs, which can make it difficult to compare performance. Underlying results (which are non-GAAP
financial information) exclude impacts of certain one-offs. This is intended to allow for easier comparability between periods, and is used
internally by management for this purpose. A detailed reconciliation between reported and underlying financial information, including details
about FY2023 and FY2022 one-offs, is set out in Heartland’s FY2023 full year results investor presentation available at heartlandgroup.info .
General information about the use of non-GAAP financial measures is also available in that presentation.
GROSS FINANCE RECEIVABLES¹
FY23
$
6.8b
FY22

$
6 .2b
Ngā hua whānui o te FY2023
FY2023 results at a glance
NET PROFIT AFTER TAX
FY23
$
95 .9m
FY22

$
9 5 .1m
underlying NPAT $110 .2m
FY22 underlying NPAT $96 .1m
Five-year
CAGR
2

7.3%
Five-year
CAGR
2

10.9%
H2H1
95.1
FY22
47.5
47.6
95.9
FY23
48.7
47.2
72.0
FY20
39.9
32.1
73.6
FY19
33.1
40.5
87.0
FY21
44.1
42.9
FY22
6.2
FY23
6.8
FY20
4.6
FY19
4.4
FY21
5.0

15
FY23 3 . 97
%
FY22
4 .05
%
underlying net interest margin 4 .00%
underlying net interest margin 4 .16%
NET INTEREST MARGIN
Consistently higher than banking peers
4
GROSS FINANCE
RECEIVABLES GROWTH
1
FY23 10 .1
%
FY22³
15 .3
%
RETURN
ON EQUITY
FY23 10 .4
%
FY22
12 .1
%
underlying return on equity 11 .9%
underlying return on equity 12 .6%
COST TO
INCOME RATIO
FY23 44 .9
%
FY22
43 .6
%
underlying cost to income ratio 42 .0%
underlying cost to income ratio 42 .5%
EARNINGS
PER SHARE
FY23 14 .0
cps
FY22
1 6 .1
cps
underlying earnings per share 16 .0cps
underlying earnings per share 16 .3cps
TOTAL DIVIDEND
FOR THE YEAR
FY23 11 . 5
cps
FY22
11 . 0
cps
1 Excludes the impact of changes in FX rates.
2 Compound annual growth rate (CAGR) for the five years to (and inclusive of) FY2023.
3 Excludes the impact of StockCo Australia and changes in FX rates.
4 KPMG FIPS Report June 2023.
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1 Based on APRA ADI Property Exposure and Heartland Finance data as at 30 June 2022 and 30 June 2023 .
16
An established Australian
finance provider
Heartland has always maintained big
aspirations . It began in 2011 through the joining
together of regional New Zealand financial
services businesses – one of which had origins
stretching back to 1875. Through acquisitions
and launching ‘best or only’ products,
Heartland has expanded and established a
track record of strong growth. Since forming in
2011, Heartland’s Receivables and NPAT have
more than tripled from $2,105 .7 million and
$23 .6 million at 30 June 2012 to $6,791 .3 million
and $95 .9 million at 30 June 2023, respectively .
Today, Heartland’s business extends beyond
New Zealand, and is firmly established in
Australia . In 2014 Heartland acquired its
Australian Reverse Mortgage business, now
operating under the brand Heartland Finance .
More recently, Heartland’s Australian Livestock
Finance business was acquired through the
purchase of StockCo Australia at the end of
May 2022 .
Heartland’s Australian Reverse Mortgage
business continues to perform very strongly .
In FY2023, Heartland Finance cemented its
position as the largest active provider of
reverse mortgages, and increased its market
share to 39.9% (up from 34.7%)¹. With the
Australian Government’s Home Equity Access
Scheme and other financial services providers
entering the market, awareness and interest
in reverse mortgages continues to grow .
Heartland is well placed to benefit from these
structural tailwinds .
Meanwhile, StockCo Australia has performed
well in a challenging environment. StockCo
Australia has been operating in Australia since
Te huanga mai hei
pēke i Ahitereiria
Becoming a bank
in Australia

2 Based on balance sheet data from the RBNZ.
17
2014 and is a leading specialist livestock
financier with established direct and
distributor networks. While dollar growth for
StockCo Australia was subdued in FY2023 due
to market price volatilities for livestock and
adverse weather conditions, the business
experienced direct client growth of 11% .
Pleasingly, the volume of livestock financed
(a measure of underlying growth in the
business) increased, with cattle transactions
up 25% from 30 June 2022 .
The outlook for both businesses is positive.
Demand for reverse mortgages continues to
be driven by Australia’s ageing population,
while livestock finance is projected to
experience increased demand as global
consumption of beef, veal and sheep
increases .
Significant potential exists to extend
Heartland’s ‘best or only’ product strategy,
delivered via scalable digital platforms, into
the Australian market. Heartland’s ability
to compete in the New Zealand residential
mortgage market through Online Home
Loans demonstrates the efficiency of digital
platforms . Low-cost online origination is a
major point of competitive differentiation and
is a key component of Heartland’s ‘best or
only’ product strategy .
The areas in focus for expansion in Australia,
subject to completion of the Challenger Bank
acquisition, are motor and truck finance,
where success has been experienced in
New Zealand through Heartland Bank’s
established Motor Finance and Asset Finance
portfolios . In order to expand in the Australian
market, it is vital to have access to well-priced
funding, hence Heartland’s strategic desire to
acquire an ADI in Australia .
Acquiring Challenger Bank
Heartland’s Australian businesses are
currently funded through wholesale facilities .
By acquiring an ADI in Australia, access to a
deeper and more efficient pool of funding
through retail deposits will be available . This
is expected to reduce the need for wholesale
funding and support expansion into new
sectors in Australia . As retail funding is usually
cheaper than wholesale rates, an additional
benefit is the potential for an uplift in margin.
The acquisition of the Heartland Finance
reverse mortgage business in 2014 is a good
example of what is possible . At the time of
purchase, the loan book was approximately
A$377 million . Nine years on, it is just over
A$1.4 billion (as at 30 June 2023), with an
impressive compound annual growth rate of
22.8% for the five-year period from 1 July 2018
to 30 June 2023 .
Challenger Bank is an established ADI and
has recently undertaken a programme of
significant investment to build out its digital
capability. Its current place in the market
as a small, digitally focused bank fits well
with Heartland’s long-term strategy of
digitalisation on both sides of the Tasman .
The acquisition of Challenger Bank remains
subject to regulatory approvals . Part of this
involves determining the most appropriate
group structure to accommodate the
Challenger Bank acquisition. The final
group structure is now expected to include
Heartland Bank acquiring Challenger Bank.
If this occurs, Heartland Banking Group’s
business would be carried out in both New
Zealand and Australia.
Heartland’s future in Australia
Heartland Bank has achieved significant
success in New Zealand since becoming a
registered bank in December 2012. It has been
awarded Canstar New Zealand’s Savings Bank
of the Year for six consecutive years (2018-
2023) and received the award for Outstanding
Value Home Lender in 2023. In the first and
second quarters of FY2023, Heartland Bank
also experienced the highest growth rate
in retail deposits of all main and domestic
banks in New Zealand.² It is this expertise
that Heartland intends to leverage to extend
its ‘best or only’ product offering into new
sectors in Australia .
The opportunity that the Challenger Bank
acquisition presents is considerable . With an
ADI licence, growth will be possible through
various avenues, positioning Heartland well
to provide increased financial services to
markets that are underserved by traditional
financial institutions.
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Te huanga mai o te
whaihuatanga mā roto i
te whakamatihikotanga
Creating efficiency
through digitalisation

19
Frictionless service at the
lowest cost
Consistent with Heartland’s strategy is its
commitment to differentiation. One of the
ways in which Heartland does this is through
providing customers with frictionless service
at the lowest cost . This means delivering
customers with an exceptional user
experience through digital platforms that
are cost-efficient for Heartland to operate.
In many cases, the cost savings can then
be passed on to customers in the form of
attractive savings or lending interest rates.
This is achieved through the ongoing
digitalisation and automation of services,
with a particular focus on Heartland Bank in
New Zealand.
Leanne Lazarus, Heartland Bank
CEO said, “We know customers
would much rather spend their
time on the things they enjoy
than wait in a queue or on
the phone to speak with their
bank. We want to enable our
customers to help themselves
by providing self-service
functionality”.
Using the CTI ratio as a measure of the
efficiency of digitalisation, Heartland has
an ambition to reduce its underlying CTI
ratio to less than 35% by FY2028. In FY2023,
it sat at 42.0%,¹ much lower than the
average CTI ratio of non-major New Zealand
banks and more comparable to the major
Australian banks.² Heartland achieved this
through a commitment to digitalisation and
technology . With several initiatives underway
across Heartland Bank, there are further
improvements that can be made to help
achieve Heartland’s underlying CTI ratio
reduction ambition .
Core banking system upgrade
Heartland Bank’s core banking system
provides the platform for many of the
services received by customers. Upgrading
this system presents an opportunity to more
effectively reduce friction for customers in
the way they interact with Heartland .
The upgrade is a significant programme
of work and investment which has been
underway since the financial year ended
30 June 2021 (FY2021) . It is now nearing
completion and due to go live within this
calendar year . The upgraded platform will
position Heartland for increased scalability in
the future . It will provide a platform on which
to deliver increased levels of automation and
digitalisation, which will allow the following
initiatives to be rolled out – with many more
expected in the years to come .
Ease and convenience
Many of Heartland Bank’s inbound customer
calls relate to basic banking requests, such
as requests for statements or balances . The
process of having to make a call during set
hours to access this information is irksome
for customers .
Heartland is using technology solutions
to enable increased self-service via the
Heartland Mobile App . By digitalising the most
common reasons for customer inbound calls,
Heartland aims to create a more seamless
customer experience . This will allow
customers more ease and convenience in
managing their Heartland Bank loans, savings
and deposits . It also allows Heartland’s
team to focus on more complex customer
requests .
Increased flexibility
Offering customers the flexibility to self-
manage loan repayments enables customers
more control over how they manage their
finances – especially for those who may be
experiencing temporary cashflow challenges.
Increased flexibility will be offered to Motor
Finance customers, including those in
1 Underlying CTI ratio refers to the CTI ratio calculated using underlying results. When calculated using reported results, the CTI ratio was
44 .9%, up 126 bps compared with FY2022 . For more information, see page 4 of Heartland’s FY2023 full year results investor presentation
available at heartlandgroup.info .
2 The average CTI ratio of New Zealand’s main domestic non-major banks excluding Heartland (The Co-operative Bank, Kiwibank, SBS and TSB)
was 69.2% for the 12 months to 30 June 2023 (data from the RBNZ Financial Strength Dashboard, valid as at 27 September 2023). The average
CTI ratio of Australia’s major banks (ANZ, CBA, NAB and Westpac) was 45.2% for their most recent respective annual reporting periods.
01
02
03
05
06
04

01 Year in review
20
arrears, to allow them to self-manage their
loan repayments digitally via the Heartland
Mobile App . Various new features are being
developed specifically to reduce the need
for these customers to have to contact
Heartland Bank to manage repayments.
These features are expected to include
functionality to make short term payment
deferrals, clear arrears, and allow the
customer to update their direct debit
information .
Process automation
Increasing efficiency for Heartland’s
people by automating manual processes
is an important step in Heartland’s overall
digitalisation . One of the behind-the-scenes
changes planned is an upgrade to the
existing back-end technology which will
allow scalable solutions to optimise back-end
processes. By reducing manual effort and
friction for employees, this will also improve
customer experience .
Motor digitalisation
Heartland will continue to roll out
enhancements to digital capabilities across
its Motor Finance white label brands and
dealer partners to offer New Zealanders
faster and easier access to vehicle finance.
Heartland has an ambition to launch seven
branded online origination platforms to dealer
partners by 30 June 2024 .
These online origination platforms are already
in use by several of Heartland’s branded
and dealer partners, and offer customers a
vehicle finance decision in minutes from their
laptop, computer or mobile device .
Customer adoption
All improvements begin by ensuring
customers’ needs are front of mind .
Behaviour change can take time. The service
that Heartland provides cannot be a casualty
of the digitalisation process .
To implement these changes and support
customers’ adaptations to them, Heartland
has developed a specific strategy to drive
awareness and education of features
and encourage customers from reverting
to traditional channels . Along the way,
Heartland will continue to monitor, evaluate
and adapt its approach as customer needs
and adoption to new technologies evolve .
Pleasingly, the use of digital channels
continues to increase . The percentage of
Heartland Bank’s Reverse Mortgage website
visitors who used mobile devices increased
from 51% at 30 June 2022 to 54% at 30
June 2023. This reflects the inroads mobile
phone technology is making with older
demographics and supports Heartland’s
digital distribution strategy and lower cost
servicing .
Achieving an underlying CTI ratio of less than
35% by FY2028 requires change and will take
time . However, with the initiatives underway
to increase self-service, reduce telephony
and increase automation, Heartland is
determined to achieve its underlying CTI ratio
reduction ambition – providing a frictionless
service for customers, at a low cost to the
business .

02
WHO WE ARE

02 Who we are
22
Our people
Our funding
Retail
deposits
$
4 .1b
Securitisation
facilities
$
1 .7 b
Bonds and
notes
$
0 . 5b
Other
borrowings
$
0 . 3b
femalemale
gender
diverse
1
%
47
%
52
%
15 locations
535
employees
13,000+
shareholders
492
New Zealand
43
Australia
customers7. 8
%

Tā mātou pakihi
Our business

23
1 All lending portfolio figures exclude FX impact.
Rural
$
381m
Livestock Finance
$381m
Household
$
1,539m
Reverse Mortgages
$1,539m
Rural
$
701m
Rural
Relationship
$424.4m
Livestock
Finance
$191.2m
Rural
Direct
$84.9m
Business
$
1,373m
Asset
Finance
$682.8m
Motor
Wholesale
$245.2m
O4B
$117.1m
Relationship
$328.5m
Household
$
2,827m
Reverse
Mortgages
$888.6m
Home
Loans
$319.6m
Personal Lending $47.3m
Motor
Finance
$1,571.4m
Total NZ
Receivables
$
4,901m
Total AU
Receivables
$
1,920m
Our lending¹
01
02
03
05
06
04

02 Who we are
24
Te Poari o Heartland Group
Heartland Group Board
As at the date of this Annual Report .
For full profiles, visit heartlandgroup.info
Members from left to
right:
Geoff Summerhayes
Independent
Non-Executive Director
Appointed 1 October 2021
Gregory Tomlinson
Chair and Non-Executive Director
Appointed 31 October 2018
Committee memberships:
Heartland Corporate Governance,
People, Remuneration and
Nominations Committee (Acting
Chair), Heartland Audit and Risk
Committee
Ellen Comerford
Independent
Non-Executive Director
Appointed 31 October 2018
Committee memberships:
Heartland Audit and Risk
Committee (Chair)
Kathryn Mitchell
Independent
Non-Executive Director
Appointed 1 October 2021
Committee memberships:
Heartland Audit and Risk
Committee
Jeff Greenslade
CEO and Executive Director
Appointed 19 July 2018

25
01
02
03
05
06
04

02 Who we are
26
Te Poari o Heartland Bank
Heartland Bank Board
As at the date of this Annual Report .
For full profiles, visit heartlandgroup.info
Edward John Harvey
Independent
Non-Executive Director
Appointed 31 December 2015
Committee memberships:
Heartland Bank Audit
Committee (Chair), Heartland
Bank Risk Committee
Kathryn Mitchell
Non-Independent
Non-Executive Director
Appointed 29 March 2019
Committee memberships:
Heartland Bank Risk
Committee
Shelley Ruha
Independent
Non-Executive Director
Appointed 1 January 2020
Committee memberships:
Heartland Bank Risk
Committee (Chair),
Heartland Bank Audit
Committee

27
Bruce Irvine
Chair and Independent
Non-Executive Director
Appointed 31 December 2015
Committee memberships:
Heartland Bank Audit
Committee,
Heartland Corporate
Governance,
People, Remuneration and
Nominations Committee
Jeff Greenslade
Non-Independent
Non-Executive Director
Appointed 31 December 2015
Simon Tyler
Independent
Non-Executive Director
Appointed 8 November 2022
Committee memberships:
Heartland Bank Audit
Committee,
Heartland Bank Risk
Committee
01
02
03
05
06
04

02 Who we are
28
Jeff Greenslade
CEO,
Heartland Group
Chris Flood
Deputy CEO,
Heartland Group
Leanne Lazarus
CEO,
Heartland Bank
Andrew Dixson
Chief Financial Officer,
Heartland Group
Michael Drumm
Group Chief
Operating Officer,
Heartland Group
Te tira whakahaere
Management
Aleisha Langdale
Chief Performance Officer,
Heartland Group
Phoebe Gibbons
General Counsel,
Heartland Group
Doug Snell
CEO,
StockCo Australia
Lana West
Group Chief People
& Culture Officer,
Heartland Group
Andy Wood
Chief Risk Officer,
Heartland Bank
As at the date of this Annual Report .
For full profiles, visit heartlandgroup.info

03
SUSTAINABILITY

03 Sustainability
30
Heartland is dedicated to
sustainable practices which
minimise its environmental
impact, positively contribute
to its communities and
enhance the lives of its
people and customers.
Heartland’s sustainability strategy is built on the
following three key pillars:
Environment
Support the just
transition to a net-zero
economy .
People
Create a pathway and
place for Heartland’s
people to grow, thrive
and be empowered to
achieve Heartland’s
goals as one team .
Care for the
communities Heartland
operates in .
Care for Heartland’s
customers .
Financial
wellbeing
Support the financial
wellbeing of Heartland’s
customers and
communities .

31
Putting our people and
environment at the heart
of what we do, to build a
sustainable future.
“
”

03 Sustainability
32
FY2023 ACHIEVEMENTS
Environmental risk screening
Heartland developed an environmental risk screening tool to be used in the credit decisioning
process to understand the sustainability of its larger business and rural borrowers by reference
to environmental, climate, reputational and regulatory factors (and mitigating actions being
employed by borrowers) . The tool is now in operation with frontline employees and enables a rating
to be provided for each of those factors, which is then considered in the initial credit decisioning
process, and as part of the ongoing credit review process .
Understanding emissions exposure
Heartland undertook Australian and New Zealand Standard Industrial Classification (ANZSIC)
code analysis to understand its exposures to customers in high energy use, fossil fuel and
extractive industries¹ which are subject to a heightened degree of transitional risk as a result of
climate factors .
That analysis disclosed that Heartland has a low exposure to customers in those industries .
FY2024 TARGETS
Implementation of a climate risk tool
Heartland intends to implement a climate risk tool to enable it to assess the potential climate
related risks and natural hazards associated with residential property in New Zealand and
Australia . Once implemented, Heartland will use this tool as part of its credit decisioning process
for reverse and standard residential mortgages in both New Zealand and Australia, and to monitor
the climate related risk status of those portfolios over time.
Calculating financed emissions
In FY2023, Heartland developed its methodology for calculating the financed emissions
attributable to its Motor Finance portfolio. Heartland is currently implementing tools to enable it to
more accurately calculate financed emissions attributable to its Reverse Mortgages, Online Home
Loans, Business and Rural portfolios in New Zealand and Australia.
Once these tools are implemented, Heartland intends to set risk appetite metrics and targets for
climate related risk in all of its lending portfolios.
Climate related risk analysis
Heartland is currently undertaking scenario analysis to better understand the resilience of its
business strategy in light of possible climate related risks.
Establish a Sustainability Committee
Heartland’s Board expects to shortly establish a Sustainability Committee to oversee Heartland’s
sustainability strategy and implementation plans .
Te taiao
Environment
How: Build the capability to appropriately take climate change risks into consideration
when making lending decisions.
Heartland’s commitment: Support the just transition to a net-zero economy .
1 Those industries are high energy use industries (heavy manufacturing and metal forging and smelting) and fossil fuels and extractive
industries (lime quarrying, fuel retailing, coal mining blasting, oil and gas extraction and ore mining) .

33
FY2023 ACHIEVEMENTS
Funding new generation vehicles
Heartland more than doubled the proportion of new generation vehicles funded through its
Motor Finance portfolio in FY2023 .
Of all vehicles funded in FY2023, more than 10% were new generation vehicles, compared with 5%
in FY2022 . The target for FY2023 was 15% . Heartland was well positioned to meet that target in
the first half of FY2023, however supply chain issues meant fewer new generation vehicles were
available in the second half of FY2023 .
iOwn GFV product launched
Heartland launched an “iOwn” guaranteed future value (GFV) product across the Peugeot,
Citroen and Opel range of vehicles, which includes a range of new generation vehicles .
This product enables a borrower to purchase a new generation vehicle with ease through lower
weekly repayments with no deposit and a minimum GFV (de-risking new generation vehicle
ownership) .
Phasing out diesel passenger vehicle lending
Heartland is phasing out lending on diesel passenger vehicles .
FY2024 TARGETS
Increase lending to new generation vehicle
Heartland intends to increase the proportion of new generation vehicles financed through its
Motor Finance portfolio .
Identifying climate related opportunities
Heartland is currently undertaking scenario analysis to better understand the strengthened
resilience of its business strategy in light of climate related risks, and also in light of climate
related opportunities . This exercise will help inform further sustainable lending initiatives .
Baseline carbon footprint analysis for Australian Livestock Finance
Heartland is working with a third party to enable its Australian Livestock Finance clients to
understand their baseline carbon footprint . In addition to helping to educate its customers
on sustainability issues, Heartland’s intention is to use that tool to develop a livestock lending
product in Australia which rewards borrowers for undertaking environmentally friendly pastoral
practices which reduce their carbon footprint .
Funding low emission assets
Heartland is committed to funding low emission assets in the Asset Finance area (i.e. new
generation trucks and yellow goods). This has led to engagement with vendor partners whose
sustainability initiatives fit well with Heartland’s. Demand for these assets is already ahead
of their development, requiring further trial runs for suitability in New Zealand. Heartland has
partnered with two national distributors of new generation trucks and yellow goods, and will
continue to expand its footprint regarding green asset funding as new electric technology enters
the market.
How: Fund Heartland’s borrowers’ transition to a net-zero economy .
01
02
03
05
06
04

03 Sustainability
34
Heartland more
than doubled
the proportion of
new generation
vehicles funded
through its Motor
Finance portfolio
in FY2023.

35
FY2023 ACHIEVEMENTS
Significant reduction in GHG emissions
Heartland’s unaudited operational greenhouse gas (GHG) emissions for FY2023 saw a 17%
reduction on the FY2019 base year . This comprised strong reductions in Scope 1 and Scope 2
emissions, but an increase in travel-related emissions as a result of business travel requirements
between New Zealand and Australia.
Heartland’s Green Team
Heartland’s Green Team is a committee of environmentally conscious employees who have
organised various environmental initiatives across FY2023 to educate and promote good
sustainability practice . This has included an environmental themed quiz night promoting Earth
Week, a volunteer day planting trees at the Whau River Trust in West Auckland, organising an
audit of waste generated at Heartland’s Auckland offices (and raising awareness of ways to
reduce that waste) and arranging the installation of LED lighting at Heartland’s Auckland offices.
FY2024 TARGETS
Replace remaining vehicle fleet
Heartland intends to replace its remaining New Zealand fleet with new generation vehicles in
FY2024 .
Set long-term GHG targets
Heartland intends to set a long-term GHG emission reduction target and plan, including Scope 3
financed emissions.
Engagement with Rural borrowers
Heartland is surveying its New Zealand Rural borrowers to understand their emissions profiles
and environmental sustainability practices, in order to better target sustainability offerings to
those customers .
How: Embed sustainability into what Heartland does .
01
02
03
05
06
04

03 Sustainability
36
Manawa Ako
Māori and Pasifika communities are under-represented in the banking industry in New
Zealand. Manawa Ako is Heartland’s internship programme which has been specifically
created for Māori and Pasifika rangatahi (youth). Heartland’s Manawa Ako programme
provides opportunities for participants to learn, lead and succeed in a corporate
environment, and gain a greater understanding of working in the financial sector. The
programme is based on the Māori concept of “ako”, which means to learn and to teach.
As such, Heartland also gains from the cultural perspectives the interns bring to the
workplace from their close connection to their identity.
• Māori and Pasifika people represent approximately 2% of employees in the banking
industry in New Zealand, however represent 7% of Heartland’s employees. Manawa
Ako has helped Heartland to access a significant pool of talent which was previously
unavailable to it .
• More than 110 rangatahi have participated in the programme since inception
in 2017 .
• 25 interns were welcomed in FY2023 .
• Over the last six years, many interns have continued on to permanent or fixed term
employment after their internship. At 30 June 2023, eight former Manawa Ako interns
were employed by Heartland .
• Along with the value that the participants gain through this programme, Heartland’s
tuakana (buddies) also derive the benefit of the experience of mentoring these young
people during the programme .
FY2023 ACHIEVEMENTS
FY2024 TARGETS
Extend community engagement
In FY2024, Heartland intends to engage an even wider network of community groups to seek
expressions of interest for the Manawa Ako programme, including reaching out to more iwi and
additional schools in Auckland.
Ngā tāngata
People
How: To be a workplace where Māori can succeed as Māori and create a pathway to being
an employer that is welcoming to all cultures and ethnicities .
Heartland’s commitment: Create a pathway and place for Heartland’s people to grow,
thrive and be empowered to achieve Heartland’s goals as one team .

37
FY2023 ACHIEVEMENTS
Investing in emerging talent
Heartland invests in attracting and developing talent with a particular focus on the younger
demographic . This is important given that 49% of Heartland’s people are under 35 years old .
Rangatahi (Youth) Advisory Board

This Board is made up of a select group of employees aged 35 and under from across
Heartland . It provides an opportunity for rangatahi at Heartland to learn, develop and be
exposed to executives and directors, and likewise for executives and directors to obtain
the insights of Heartland’s younger people. In FY2023, the Board had 10 members (5 male,
5 female) from across Heartland . The Board focused on strategic projects including social
sustainability, employee wellbeing, digital strategy and financial literacy for young people,
with recommendations presented to the executive team and considered for implementation .
Rotary Young-Person Leadership Awards (RYLA) youth programme

RYLA is a leadership development programme for 20-28-year olds, hosted and sponsored
by New Zealand Rotary Clubs. The week-long, live-in programme involves presentations,
workshops and activities designed to help young people develop their teamwork and
communication skills, and fulfil their potential as leaders. Heartland nominates and pays for
selected Heartland employees to participate in the programme . Five Heartland employees
participated in FY2023 .
Maintained Living Wage accreditation
Heartland has been an accredited Living Wage employer since 2020 and maintained this
accreditation in FY2023. The Living Wage is calculated by the New Zealand Family Centre Social
Policy Unit (as an independent party) and is considered the minimum rate for an employee to be able
to earn enough money to live with dignity .
Recognising those who live our mātāpono (values)
Each quarter, through its Mātāpono Awards, Heartland recognises its people who consistently
demonstrate Heartland’s mātāpono. Since 2019, more than 65 people from teams in New Zealand
and Australia have received a Mātāpono Award.
FY2024 TARGETS
Seek employee insight
Heartland intends to seek insight from its people on how it can become a more recognisable and
desirable employer .
Continue to offer successful initiatives
Heartland intends to continue offering the initiatives it had success with in FY2023, including:
• offering positions for young people who aspire to leadership to participate in the RYLA programme
• facilitating the Rangatahi Advisory Board programme
• continuing to grant Mātāpono Awards (and ensuring that awards recognise employees who
are non-leaders and in more junior positions, while seeking to achieve gender balance in award
nominations and recipients) .
How: Establish Heartland as a recognisable and desirable employer of choice to attract,
develop and enable exceptional talent .
01
02
03
05
06
04

03 Sustainability
38
FY2023 ACHIEVEMENTS
Pay gap reporting²
FY2023 was Heartland’s second year of reporting pay gap information for gender, Māori and
Pasifika. As a median comparison, change for this measure takes time. Heartland remains
committed to ensuring it monitors recruitment, pay levels and remuneration to ensure it is fair,
and unconscious bias is checked. We will continue to report on these metrics annually.
Gap between median pay of men and women across all NZ roles: 28%
Gap between median pay of non-Māori and Māori across all NZ roles: 28%
Gap between median pay of non-Pasifika and Pasifika across all NZ roles: 27%
Maintained gender balance across the organisation
Heartland’s gender split of 52% female and male 47% remains reflective of New Zealand
and Australia’s total population by gender respectively. At all levels, females reflect 30%+ in
Heartland’s leadership groupings. While this is not insignificant, Heartland remains focused on
consciously supporting women in leadership through the RYLA programme, Kia Eke (see below)
and ensuring gender balance in opportunities such as Rangatahi Advisory Board participation,
employee group involvement, and in striving to ensure gender balance in recruitment .
The table below shows the gender diversity of directors and employees of Heartland in New
Zealand and Australia.
As at 30 June 2023As at 30 June 2022
Positions FemaleMale
Gender
Diverse
Not
Stated
TotalFemaleMale
Not
Stated
Total
Board -
Heartland
Group
Holdings
2 (40%) 3 (60%) 0 0 5 2 (33%) 4 (67%) 0 6
Board -
Heartland
Bank
2 (33%) 4 (67%) 0 0 6 2 (33%) 4 (67%) 0 6
Management 3 (30%) 7 (70%) 0 0 10 3 (30%) 7 (70%) 0 10
All People
Leaders (excl
Management)
48 (46%) 56 (54%) 0 0 104 47 (44%) 60 (56%) 0 107
All staff

(excl Board)
279 (52%)251 (47%) 3 (0.6%) 2 (0.4%) 535 284 (51%) 266 (48%) 3 (0.5%) 553
Kia Eke employee group
In FY2023, Heartland reinvigorated Kia Eke, an employee-led group that focuses on supporting
women in leadership and creating greater gender balance within the senior leadership group and
more broadly within Heartland .
How: Create an inclusive, engaging environment for employees where gender balance
and diverse ethnic representation is achieved at all levels of the organisation, leading to
exceptional experiences for Heartland’s people and customers .
2 Heartland’s pay gap reporting includes pay for all New Zealand employees, including base pay and discretionary payments.

39
FY2023 ACHIEVEMENTS (CONT)
Growing Families employee group
Growing Families is one of Heartland’s newest employee groups which works in collaboration with
Kia Eke to look at ways to support employees while they manage family commitments – whether
they are first time parents, providing elder care, or supporting their community.
Received Rainbow Tick reaccreditation
Heartland received Rainbow Tick accreditation in November 2021 and was reassessed for
reaccreditation in FY2023. The three key standards measured were leadership, organisational
development and external engagement .
Creation of Accessibility employee group
Heartland’s Accessibility employee group was formed to champion accessibility within Heartland,
with the goal of achieving the NZ Accessibility Tick.
Heartland’s Head of People & Culture participated in a panel discussion to shine a light on
accessibility for deaf or hard of hearing employees and customers. Panellists talked about how
their organisations are leading the way in accessibility and making accessibility a priority.
Hearing Accredited Workplace
In FY2023, Heartland was pleased to maintain its status as a Hearing Accredited Workplace
through the National Foundation for Deaf and Hard of Hearing .
The Accessibility employee group has taken ownership of ensuring Heartland’s workplace is
accessible, and its Hearing Accreditation is maintained .

FY2024 TARGETS
Reduce pay gaps
Heartland intends to progress towards further reducing gender and ethnicity pay gaps .
Remuneration and recruitment are key to this work, including ensuring remuneration is aligned
to the role and the person’s skills and experience. A gender review is completed for end of year
remuneration reviews and external benchmarking provides remuneration guidance to negate the
potential for unconscious bias .
Increase gender balance
Heartland intends to continue to focus on achieving gender balance in all levels at Heartland,
including by leveraging its Growing Families and Kia Eke employee groups.
Improve accessibility
Heartland is researching Australian-based organisations which work in accessibility, to improve
accessibility across both sides of the Tasman .
01
02
03
05
06
04

03 Sustainability
40
FY2023 ACHIEVEMENTS
More than $710,000 funded through the Heartland Trust
The Heartland Trust is Heartland’s registered charitable trust that is independent from, but
closely supported by, Heartland . The Heartland Trust provides grants and donations to various
community groups and organisations across New Zealand in the areas of education and learning,
the arts and wellbeing, with a focus on enhancing outcomes of youth . Grants are funded through
dividends paid on Heartland shares held by the Heartland Trust .
Grants from the Heartland Trust for FY2023 totalled $716,015 - a 28% increase from FY2022.
Education and learning
The Trust supports a number of organisations focused on enhancing education and
learning opportunities for rangatahi (youth) .
Heartland has been an InZone Education Foundation (InZone) cornerstone funder since
2017. InZone is a charitable trust that aims to inspire and support Māori and Pasifika youth
to take their place in the cultural, economic and civic leadership of Aotearoa New Zealand.
It does this by providing kāinga (hostels) which are “InZone” for high performing schools,
and partnering with the schools to ensure students achieve top educational outcomes . Its
kāinga enable students to live and learn in a supportive whānau environment with a Māori
kaupapa, supporting, inspiring and empowering rangatahi to achieve to their full potential.
The Trust has been a proud sponsor of The University of Auckland’s Kupe Leadership
Scholarship (Kupe) since 2019. Kupe offers a unique experience that develops a cohort
of future leaders intended to create a dynamic and successful future for Aotearoa, New
Zealand. Each year, funding from the Trust supports a Kupe Scholar, and operational costs
related to the delivery of the programme . In FY2023, Heartland’s Kupe Scholars have set up
initiatives to improve access to higher education (in New Zealand and abroad), contributed
to local government, represented New Zealand at the coronation of King Charles III,
and completed degrees with the aim of improving sectors such as public housing and
Corrections .
The Trust maintained its commitment to funding various high school rugby teams across
the country. Studies have shown that more involvement in sports can lead to better
academic and social achievements, positively impacting students, schools, and the
community .
The Trust also contributed towards the costs of Heartland Bank’s Manawa Ako internship
programme, described on page 36 .
How: Heartland gives back to the community through grants, sponsorships and active
volunteering .
Heartland’s commitment: Heartland cares for our communities .

41
FY2023 ACHIEVEMENTS (CONT)
Arts and culture
In FY2023, arts and culture grants included the WORD Christchurch Festival, Te Matatini
Herenga Waka Herenga Tangata National Kapa Haka Festival (Te Matatini), and
Ashburton Schools’ Music Festival .
The Trust’s grant to WORD Christchurch Festival sponsored Dr . Melani Anae’s session
at the event. Dr Anae is a Marsden Award recipient, and expert on ethics and Pasifika
identity – aligning to Heartland’s values, and diversity and inclusion commitments . The
Trust was proud to be a Strategic Partner of Te Matatini, the pinnacle cultural event for
Māori performing arts. This was the second year Heartland has supported Te Matatini –
this year’s event going ahead after being postponed due to COVID-19 restrictions .
The Ashburton Schools’ Music Festival is a special event for Heartland, given its close
connection to the Ashburton community – where Heartland began life as the Ashburton
Permanent Building & Investment Society in 1875. Heartland was pleased to once again
sponsor the event, providing Ashburton primary school students an opportunity to
perform and sing on stage in a choir .
Wellbeing
Following the devastating impacts of the Auckland floods and Cyclone Gabrielle in New
Zealand in early 2023, the Trust was pleased to support disaster recovery efforts with
donations totalling $45,000. Donations included $30,000 to the Hawke’s Bay Disaster
Relief Trust and $10,000 to the Auckland Council Emergency Relief Fund. In support of its
long-standing relationship through Heartland Bank’s New Zealand Reverse Mortgage
product, $5,000 was donated to Age Concern in Wairoa .
In FY2023, the Trust increased its commitment to health and wellbeing through two new
grants, one each to the Tania Dalton Foundation’s Resilience Project and the Canterbury
Sports Development Academy’s Tātai Whetū Waitaha Athlete Support Programme
(TWW) .
Funds granted by the Trust enabled Heartland Bank to provide The Resilience Project
an electric car, allowing them to more sustainably visit more schools and deliver
practical, evidence-based mental health strategies to build resilience and happiness
among students . TWW is a holistic programme that aims to assist athletes to achieve
their goals, without social restraint, while ensuring they are thriving in sport and life .
Funding provided by the Trust enables TWW to create support opportunities (such as
psychology, medical, physiotherapy, strength and conditioning, nutrition, leadership,
funding and communications) and connections to networks for aspiring Canterbury
athletes with potential to represent New Zealand on the world stage.
The Trust also continued its long-term support of the Auckland City Mission.
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03 Sustainability
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FY2023 ACHIEVEMENTS (CONT)
Heartland Bank continued supporting its annual Freemasons scholarship programme
The Heartland Freemasons Scholarships assist family members of Freemasons who are Year 13
students and are active in their communities . In FY2023, three scholarships of $6,000 each were
available . Applicants must demonstrate how the scholarship would assist them in achieving their
academic goals .
Partnering with Dementia Australia
Heartland Finance has partnered with
Dementia Australia since 2018 and currently
sponsors the Melbourne ‘Memory Walk and
Jog’ event to support the great work they
do in promoting healthy ageing . Dementia
Australia is the national peak body for
people living with dementia, including their
families and carers. They work tirelessly to
bring notice to this important health issue –
especially as Australia’s ageing population
increases .
Paid volunteer days
COVID-19 lockdowns saw a reduction in
Heartland employees’ ability to volunteer
in the community . Despite this challenge,
volunteer days in FY2023 included supporting
Eat My Lunch, the Cyclone Gabrielle disaster
recovery efforts, and planting trees for the
Whau River Trust .
FY2024 TARGETS
Increasing commitment to wellbeing
In FY2024, the Heartland Trust’s commitment to wellbeing has been increased through a renewed
partnership with Lifeline Aotearoa .
Continue to give back through the Heartland Trust
The Heartland Trust will continue to give back to worthwhile causes in the communities in which
Heartland operates, and in areas that support a thriving New Zealand.
Increase volunteer day participation
Heartland intends to promote volunteer days as a benefit for its employees, with a view to
increasing utilisation in FY2024 .

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FY2023 ACHIEVEMENTS
Supporting people to live a more comfortable retirement
Heartland’s Reverse Mortgage enables New Zealanders and Australians to have more
choice in retirement. Rather than needing to sell their homes to consolidate or refinance
debt or meet the costs of living, a reverse mortgage gives customers the ability to access
the equity in their home without being forced to leave .
Between June 2018 and June 2023, the number of New Zealanders retiring with mortgage
debt increased by 15% .³ As the cost-of-living rises, Heartland has seen an increase in
the proportion of Reverse Mortgages being used to repay debt in New Zealand. Similarly,
providing extra income was an increasingly common reason to take out a reverse mortgage
in Australia in FY2023. Use of a Heartland Reverse Mortgage for debt consolidation has
increased year-on-year since FY2021, with more than 50% of new Australian customers
using their reverse mortgage for this purpose .
The ability to age in place (that is, for a person to remain in their home as they age) is
extremely desirable for many . Of Heartland’s Reverse Mortgage customers in Australia,
80% stated that retiring and living in their own home was the most important benefit of
a reverse mortgage. This aligns with a study by RMIT University, supported by Heartland,
which found that 90% of Australians wish to retire and live in their own home . However,
36% of older Australians live in a home that may be unsuitable for ageing in place without
upgrades or renovations – and approximately 29% will not be able to afford the changes
required to make their home age-friendly.
Funding home improvements continues to be a key reason for customers to take out a
Reverse Mortgage in both countries .
The table below shows the way in which Heartland’s Australian and New Zealand Reverse
Mortgage customers have chosen to use their Reverse Mortgage .
Reverse Mortgage uses (proportion of new customers)⁴
Australia

New Zealand
Home improvements (55%) Home improvements (57%)
Debt consolidation (51%) Debt consolidation (42%)
Income (38%) Everyday expenses (32%)
Vehicle upgrade (28%) Medical and healthcare (27%)
Travel (24%) Travel (26%)
Medical and healthcare (14%) Vehicle upgrade (24%)
3 According to data from Centrix .
4 Reverse Mortgages are often used for more than one purpose .
How: Heartland provides competitive and flexible products that aim to improve the lives of
our customers .
Heartland’s commitment: Heartland cares for our customers .
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03 Sustainability
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Savings Bank of the Year
Heartland Bank was proudly awarded Canstar NZ’s 2023 Bank of
the Year – Savings for the sixth year running.⁵ Heartland Bank also
received 5-Star ratings for its Direct Call Account, for the eighth
year in a row, its 32-day Notice Saver Account for the second year
in a row, and, for the first time, its newest 90-day Notice Saver
Account . These products were recognised for their competitive
rates and flexibility.
Outstanding Value Home Lender
Heartland Bank was awarded Canstar NZ’s
Outstanding Value Home Lender Award .
Heartland achieved 5-Star Outstanding Value
ratings across the three residential home loan
product categories: Fixed Home Loans, Floating
Home Loans and Line of Credit Home Loans .
Recognised for innovation and excellence
Heartland Finance was a finalist for Best Banking Innovation at the Australian Finder Innovation
Awards 2022 and the winner of the Excellence Award for Non-Bank of the Year at the Australian
Mortgage Awards 2022 .
FY2024 TARGETS
Continue to be recognised for exceptional value and innovation
Heartland intends to continue to provide customers with exceptional value and banking
innovation. In doing so, its aims to maintain its streak of Canstar NZ recognition, and recognition
in the Australian market for its Reverse Mortgage product.
Commission research to better understand the needs of older New Zealanders and
Australians
Heartland is exploring a partnership with organisations such as RMIT University to undertake
further research to better understand the needs of older New Zealanders and Australians. This is
intended to contribute to greater education and awareness of reverse mortgages as a solution in
retirement .
Improve customer feedback collection and evaluation
Heartland aims to improve its customer feedback collection and evaluation processes to ensure
its products and distribution channels continue to serve its customers’ needs .
5 Awarded July 2023 .

45
Melbourne couple James and Mary dreamed of retiring to coastal
New South Wales. They wanted to live in their own home, close to
the beach.
When it came time to move, there were complications . The Melbourne house didn’t sell for
as much as they’d hoped and they’d underestimated the costs to move interstate . To live out
their dream, they would have had to spend most of their existing resources, including their
superannuation .
James had previously looked into getting a reverse mortgage. He dug out the information he’d
gathered and got in touch with Heartland to see if we could help. After speaking with our team,
they felt confident that with the support of Heartland, they could continue with their dream
plans .
When James and Mary found their dream home, it was about $100,000 over their budget . They
decided to go ahead with a Heartland Reverse Mortgage to cover the extra cost, top up their
income and keep funds aside in a cash reserve facility for future needs.
James said, “Without Heartland we would have purchased a lower priced property . Yes, we
wouldn’t have any ‘loans’ with the lower priced option, but we would have much less equity
wealth and wouldn’t have the pleasure of living in our nicer home for the past five years.
We now find ourselves with increased equity, living in a lovely home of our choice and having
the confidence that our Heartland Reverse Mortgage will continue to support our lifestyle....
Without Heartland none of this would have been possible.”
James has the following message for anyone considering taking out a reverse mortgage.
“Consider your lifestyle, and your home equity . It’s all good and well having a million-dollar
home, but not when you are living off the pension where you can only just get by. Your home
equity is yours to spend, you can control where you want to live and use a reverse mortgage to
live a better retirement.”
Making a
dream home reality
Names changed for
privacy purposes .

03 Sustainability
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FY2023 ACHIEVEMENTS
Providing repayment relief
The current economic environment and cost of living has left more New Zealanders experiencing
financial difficulties. Heartland is providing a range of services to its customers to support them
during these difficult times.
This included continuing to offer the Heartland Extend product which enabled customers to
make their existing loan repayments more manageable.
Reducing customer friction
Throughout FY2023, Heartland continued to improve the Heartland Mobile App to support in
addressing customers’ most pressing needs – controlling their own finances, opening accounts,
and trusting Heartland with their hard-earned money .
Ongoing digitalisation enhancements in FY2023 included expanding the secure automatic
approval capabilities of Asset Finance and New Zealand Livestock Finance application processes,
reducing customer friction and the need for manual assessment .
Automating term deposit onboarding
Heartland seeks to offer a frictionless onboarding process to save customers time. In FY2023,
Heartland developed automation to provide term deposit applicants a more streamlined account
opening process .
FY2024 TARGETS
Support borrowers to manage their repayments, avoiding arrears
One-Click Deferral will offer borrowers the flexibility to self-manage their vehicle loan repayments
digitally via the Heartland Mobile App . Several mobile app features are currently being developed
to provide borrowers the ability to pre-emptively manage their loan repayments to avoid falling into
arrears, and to assist customers who are in arrears with getting their repayments back on track.
Continue to increase digital self-service functionality
One of Heartland’s priorities in FY2023 has been Heartland Bank’s core banking system upgrade,
the development of which is nearing completion . Implementation is expected to be completed by
the end of December 2023 . Once implemented, Heartland intends to release further features to
its mobile apps which will enhance customers’ ability to self-service, reducing the dependency
customers have on telephony .
Te oranga ā-ahumoni
Financial wellbeing
How: Enhance economic outcomes for customers through digitalisation .
Heartland’s commitment: Support the financial wellbeing of Heartland’s customers and
communities .

47
Heartland intends to
release further features
to its mobile apps which
will enhance customers’
ability to self-service.

03 Sustainability
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FY2023 ACHIEVEMENTS
Extending digital access to Australian Reverse Mortgage customers
Heartland has released a mobile app for its Reverse Mortgage customers in Australia, allowing
them to begin to manage their loan from their mobile device . Customers can now view their loan
balance and request additional drawdowns in a frictionless manner from the Heartland Finance
Mobile App . Within one month of rolling the app out to Australian Reverse Mortgage customers,
more than 10% of customers had gained access . It is intended that the app will save customers
time by reducing the need for them to call Heartland for these simple requests .
Improving mobile app literacy
Heartland has published “how to” guides on its websites to provide mobile app customers with
detailed information on how to complete banking requests themselves. This minimises friction in
service requests and reduces the need for customers to call Heartland’s contact centre .
Protecting customers from scams and fraud
Heartland took part in an industry wide anti-scam campaign organised by the New Zealand
Banking Association to raise awareness and educate people on how to stay safe from scams.
Alongside other New Zealand banks, Heartland also supported the production of an educational
documentary series organised by New Zealand’s Banking Ombudsman Scheme with the same
purpose . The documentary series aired in July 2023 .
FY2024 TARGETS
Provide digital access to New Zealand Reverse Mortgage customers
Heartland intends to provide its New Zealand Reverse Mortgage customers with app access
to view their reverse mortgage balance, interest rate, loan number, transactions, and allow
customers to request a cash reserve/redraw from their mobile device .
Deliver educational events to improve digital capability
Heartland intends to host a series of events to educate Heartland’s customers on how to use
mobile devices and applications, including the Heartland Mobile App, in order to improve their
confidence and capability using digital tools.
How: Ensure customers can benefit from Heartland’s digitalisation journey.
How: Ensure Heartland’s values and commitments are shared by its suppliers .
FY2024 TARGETS
Set supplier sustainability targets
A focus area in FY2024 will be to set a strategy and targets to enhance sustainability and ensure
Heartland’s values and commitments are shared by its suppliers .

04
DISCLOSURES

04 Disclosures
50
Te urungi ā-rangatōpū
Corporate governance
This corporate governance statement describes Heartland’s
corporate governance policies and practices as at 30 June 2023,
and has been approved by the Board.
On 1 April 2023, the NZX published a revised
NZX Corporate Governance Code. Issuers are
only required to report against the revised
NZX Corporate Governance Code for their
first full financial year commencing on or after
1 April 2023 . As Heartland’s balance date is 30
June 2023, Heartland has chosen to report
against the previous version of the NZX
Corporate Governance Code dated 17 June
2022 in this Annual Report and will commence
reporting against the revised NZX Corporate
Governance Code in its FY2024 Annual Report
for the financial year commencing 1 July 2023.
Heartland, as the parent company of the
Group, is committed to ensuring that
Heartland’s policies and practices reflect
current best practice, in the interests
of Heartland’s shareholders and other
stakeholders. In addition to information
about Heartland’s corporate governance
policies and practices, this section also
includes information about Heartland Bank’s
corporate governance policies and practices .
Heartland Bank has its own Board and
Board Committees, and makes independent
decisions (including on corporate governance
matters). Heartland and Heartland Bank Board
and Committee meetings are usually held
consecutively and members of both Boards
or Committees (as applicable) attend both
meetings . However, from November 2023,
Heartland and Heartland Bank Board and
Committee meetings will be held separately
with only the respective Chairs as attendees
at both meetings . Heartland’s important
corporate governance policies and practices
either apply to, or have been adopted by,
Heartland Bank.
Heartland is pleased to report that, other
than in respect of the matters explained
in the “Principle 3 – Board Committees”
section below, it was fully compliant with the
corporate governance recommendations
contained in the NZX Corporate Governance
Code as at 30 June 2023 .
Principle 1 – Code of Ethical
Behaviour
Directors should set high standards of
ethical behaviour, model this behaviour and
hold management accountable for these
standards being followed throughout the
organisation .
Codes of Conduct – Recommendation 1.1
Heartland’s Code of Conduct and Directors’
Code of Conduct set out the ethical and
behavioural standards expected of Group
directors, employees and intermediaries .
The Codes of Conduct are available on
Heartland’s website, heartlandgroup.info .
The Codes of Conduct cover a wide range of
areas, including:
• Heartland’s responsibilities towards
shareholders and the financial community,
its customers, clients and service
providers, and its employees;
• conflicts of interest, including the receipt
of gifts and other corporate opportunities;
• confidentiality; and
• the procedure for advising Heartland of a
suspected breach .
Every new director and employee is provided
with a copy of the Code of Conduct (and
Directors’ Code of Conduct in the case of

51
directors) and is required to read it . Each
new employee is also required to attest to
their understanding of the Code of Conduct .
Employees are also required to annually
review and attest to their understanding
of the Code of Conduct . Each director and
employee has an obligation, at all times, to
comply with the spirit as well as the letter of
the law, and to comply with the principles of
the Code of Conduct, including exhibiting
a high standard of ethical behaviour .
The Codes of Conduct are subject to
annual review . Various Heartland policies,
frameworks and standards expand upon
the topics in the Code of Conduct, for
example, Heartland’s Conduct Management
Framework, Employee Whistleblowing Policy,
and Gift and Hospitality Policy .
Insider Trading Policy –
Recommendation 1.2
Heartland has an Insider Trading Policy
which applies to all directors, employees
and contractors of Heartland and its
subsidiaries . In addition to the prohibition
on insider trading, directors, employees and
contractors are prohibited from buying or
selling the Group’s quoted financial products
during ‘blackout periods’. These are periods
that commence 30 days prior to the end of
the half-year and the full-year and generally
end once the financial results from the half-
year or the full-year have been released to
the market, and 30 days prior to the release of
a product disclosure statement, prospectus
and/or investment statement for a general
public offer of any quoted financial products,
and generally end once the disclosure
document has been released to the market.
Additional blackout periods may also be
notified from time to time. In addition, all
of the Group’s directors, senior officers
and certain other designated persons are
required to obtain consent before buying or
selling the Group’s quoted financial products
outside of blackout periods, and to certify
that their decision to buy or sell has not been
made on the basis of inside information .
The Board continually assesses, with the
assistance of the Heartland Bank Board,
whether any matters under consideration
are likely to materially influence Heartland’s
share price and therefore whether additional
trading restrictions should be imposed on
directors, employees and contractors .
The Insider Trading Policy is available on
Heartland’s website, heartlandgroup.info .
Through Heartland’s share registrar, Link
Market Services, Heartland actively monitors
trading in Heartland shares by directors,
officers and certain other designated
persons .
Principle 2 – Board Composition
and Performance
To ensure an effective board, there should be
a balance of independence, skills, knowledge,
experience and perspectives .
Role of the Board – Recommendation 2.1
The Board is responsible for corporate
governance and setting the Group’s overall
strategic direction . The Board charter
regulates Board procedure and describes
the Board’s role and responsibilities in detail
and the role of management . The Board
Charter is available on Heartland’s website,
heartlandgroup.info
The Board establishes objectives, strategies
and an overall policy framework within which
the Group’s business is conducted .
The Board schedules regular meetings at
which it receives briefings on key strategic
and operational issues from management .
Director appointment –
Recommendations 2.2 and 2.3
The Corporate Governance, People,
Remuneration and Nominations Committee
is tasked with the role of reviewing Heartland
Board composition, and reviewing and making
recommendations in relation to nominations,
for the Board’s consideration .
Each new director of Heartland is required,
pursuant to the Board charter, to enter into a
written agreement with Heartland in respect
of his or her appointment and Heartland has
a pro forma director appointment letter which
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is tailored for individual appointments .
Director attendance at Board and Committee meetings – Recommendation 2.4
The Board held 10 meetings, and the Heartland Bank Board held 11 meetings, during FY2023.
The following table shows attendance by each director at the meetings of the Heartland and
Heartland Bank Boards and Heartland Board Committees of which he or she was a member.
All of the then serving members of the Board, and Heartland Bank Board, attended the Annual
General Meeting held on 8 November 2022.
Heartland BoardHeartland Bank Board
Attended as DirectorAttended as ObserverAttended as DirectorAttended as Observer
J K Greenslade10-10-
E F Comerford10--10
E J Harvey-1011-
B R Irvine-1011-
K Mitchell10-11-
G T Ricketts¹4-4-
G R Tomlinson9--8
S M Ruha -910-
G E Summerhayes10--10
S R Tyler²-78-
Heartland directorshipsHeartland Bank directorships
Audit & Risk
Committee
Corporate
Governance, People,
Remuneration
and Nominations
Committee
Audit CommitteeRisk Committee
J K Greenslade6*5*6*-
E F Comerford7-7*5*
E J Harvey6*-67
B R Irvine6*562*
K Mitchell7-7*7
G T Ricketts¹3331*
G R Tomlinson1**51-
S M Ruha6*-67
G E Summerhayes1*-1*1*
S R Tyler***3*-34****
* These meetings were attended by the director as an observer rather than as a member.
** G R Tomlinson was appointed to the Heartland Audit & Risk Committee on 10 March 2023 and
attended all committee meetings following his appointment.
*** S Tyler was appointed to the Heartland Bank Audit Committee on 19 January 2023 and
Heartland Bank Risk Committee on 5 April 2023 and attended all Committee meetings
following this appointment .
**** The first two meetings were attended as an observer and the subsequent two as a member.
1 G T Ricketts sadly passed away on 10 March 2023 and ceased to be a director of Heartland and Heartland Bank on 10 March 2023.
2 S R Tyler joined the Heartland Bank Board on 8 November 2022.

53
A profile of each director’s experience
is available on Heartland’s website,
heartlandgroup.info . The Directors’
disclosures section of this report also
includes information on each director’s
independence status, Heartland share
dealings and relevant interests and
disclosure of interests . A description of each
director’s length of service is included on
pages 24-27 of this Annual Report.
Diversity and inclusion –
Recommendation 2.5
In order to articulate its commitment
to diversity, Heartland has developed a

Diversity & Inclusion Policy
, which requires
the Board, with the help of Heartland’s
internal Diversity & Inclusion Committee,
to set measurable objectives for achieving
diversity and to track progress against
them . Heartland’s
Diversity & Inclusion
Policy
is available on Heartland’s website,
heartlandgroup.info .
Heartland’s diversity and inclusion objectives
align to its social sustainability targets . A
commentary on achievements and activity
in FY2023 is included on pages 36-39 of this
Annual Report .
Board training and performance
assessment – Recommendations 2.6
and 2.7
To ensure ongoing education, directors
are regularly informed of developments
that affect the industry and business
environment, as well as company and legal
issues that impact the directors themselves .
Directors have access to management and
any additional information they consider
necessary for informed decision making.
The Corporate Governance, People,
Remuneration and Nominations Committee
reviews Board composition and skills.
The Chairs of Heartland and Heartland
Bank each undertake an annual review
of their respective Board’s performance,
the performance of each applicable
Committee and applicable individual director
performance . This is to ensure that they
each have a range of complementary
skills, knowledge and experience in order
to effectively govern Heartland and
Heartland Bank (as applicable), to monitor
its performance, and to support the
implementation of its strategic priorities – in
the interests of its shareholder(s) and other
stakeholders.
The Board recognises the need to have a
range of complementary skills, knowledge
and experience in order to support the
Group’s implementation of its strategic
priorities, and for the Board to have a balance
of skills and attributes in order to support
diversity at Board level . With this in mind, the
composition of both the Heartland and the
Heartland Bank Boards is regularly reviewed
and their collective skills, knowledge and
experience formally assessed . This exercise
provides an opportunity to reflect on and
discuss current Board composition, as
well as succession planning . The current
Boards comprise directors with a mix of
qualifications, skills and attributes who hold
diverse business, governance and industry
experience .
Board membership, size and composition
– Recommendations 2.8 and 2.9
The NZX Listing Rules provide that the
number of directors must be at least three,
at least two directors must be ordinarily
resident in New Zealand and at least two
directors must be independent directors .
Subject to these requirements, the size of
the Board is determined from time to time by
the Board .
As at 30 June 2023, the Board comprised five
directors, being the non-executive Chair, the
CEO and three independent, non-executive
directors . Three of Heartland’s directors
are ordinarily resident in New Zealand, and
a majority of the Board is independent . The
Board encourages rigorous discussion and
analysis when making decisions.
On 20 February 2023, G T Ricketts stepped
down as Chair of Heartland with immediate
effect due to ill heath and G R Tomlinson,
Heartland’s Deputy Chair, assumed the
role of Chair . The Board is of the view that
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although G R Tomlinson is not independent,
it is appropriate for G R Tomlinson to be
Heartland’s Chair given he has been a non-
executive director of Heartland since 2018,³
Deputy Chair for a number of years and
has a deep understanding of Heartland, its
business and its shareholders . In addition,
he is not an executive of Heartland which
ensures that there is continued, appropriate
separation between the Chair and CEO of
Heartland to ensure that a conflict of interest
does not arise .
As a result, while Heartland’s Chair is
not independent, the Chair and the
CEO are different people, as required by
Recommendation 2.9 of the NZX Corporate
Governance Code .
Principle 3 – Board Committees
The board should use committees where this
will enhance its effectiveness in key areas,
while still retaining board responsibility .
As at 30 June 2023, Heartland had
two permanently constituted Board
Committees: the Audit & Risk Committee
and the Corporate Governance, People
Recommendations and Nominations
Committee. Each of these Committees is
tasked with working with management in its
specific area of responsibility and reporting
its findings and recommendations to the
Board. Management attend Committee
meetings as required at the invitation of the
relevant Committee.
Each of these Committees has a charter
which sets out the Committee’s objectives,
membership, procedures and responsibilities .
A Committee does not take action or make
decisions on behalf of the Board unless it is
specifically mandated to do so. The charter
of each Committee is available on Heartland’s
website, heartlandgroup.info .
Audit & Risk Committee –
Recommendations 3.1 and 3.2
Membership is restricted to non-executive
directors, with at least three members, the
majority of whom must be independent . The
Chair of the Audit & Risk Committee must be
an independent director who is not the Chair
of the Board . As discussed above, the Audit
& Risk Committee operates under a written
charter and employees attend meetings
only at the invitation of the Audit & Risk
Committee.
As at 30 June 2023, the members of the
Audit & Risk Committee were E F Comerford
(Chair), K Mitchell and G R Tomlinson.⁴ The
role of the Audit & Risk Committee is to
advise and provide assurance to the Board
in order to enable the Board to discharge its
responsibilities in relation to the oversight of:
• the integrity of financial control, financial
management and external financial
reporting;
• the internal audit function;
• the independent audit process; and
• the formulation of its risk appetite.
The Audit & Risk Committee also provides the
Board with assurance that all risks within the
key risk categories which are relevant to the
Group have been appropriately identified,
managed and reported to the Board .
The Audit & Risk Committee works closely
with the Heartland Bank Audit Committee
and the Heartland Bank Risk Committee,
which have similar responsibilities in relation
to Heartland Bank, and their meetings
occur consecutively . However, as discussed
earlier, from November 2023 Heartland and
Heartland Bank Committee meetings will
be held separately with only the respective
Chairs as attendees at the other meetings. As
at 30 June 2023, the Board determined that all
Committee members had a recognised form
of financial expertise in accordance with the
Audit & Risk Committee’s charter.
Corporate Governance, People,
Remuneration and Nominations
Committee – Recommendations 3.3
and 3.4
The Corporate Governance, People,
Remuneration and Nominations Committee
is required to have, unless otherwise agreed
by the Board, at least three directors as
members, the majority of whom must be
independent . As discussed above, the
Committee operates under a written charter
and management attends Committee
meetings only at the invitation of the
Committee.
3 G R Tomlinson was also a director of Heartland Bank Limited, Heartland’s predecessor entity, before the corporate restructure of the
Heartland group on 31 October 2018. On that date he ceased to be a director of Heartland Bank Limited and began his appointment on the
Heartland Board .
4 G T Ricketts sadly passed away on 10 March 2023 and ceased to be a member of the Committee and G R Tomlinson was appointed to the
Committee with effect from this date.

55
As at 30 June 2023, the members of
the Corporate Governance, People,
Remuneration and Nominations Committee
were G R Tomlinson (Acting Chair) and B R
Irvine.⁵
Although B R Irvine is an independent
director of Heartland Bank and not Heartland,
the Board is of the view that a director
of Heartland Bank should be a member
of the Corporate Governance, People,
Remuneration and Nominations Committee
given that the majority of employees of the
Group are employed by Heartland Bank. B R
Irvine, as Chair of Heartland Bank, represents
Heartland Bank’s position in that regard. In
addition, following G T Ricketts sad passing
on 10 March 2023, the Board determined
to appoint G R Tomlinson as Acting Chair
and to maintain Corporate Governance,
People, Remuneration and Nominations
Committee membership at two directors until
such time as the most appropriate group
structure to accommodate the Challenger
Bank acquisition is determined. Accordingly,
Heartland has not strictly complied with
Recommendation 3.3 of the NZX Corporate
Governance Code as the majority of
the Corporate Governance, People,
Remuneration and Nominations Committee
are not independent directors of Heartland .
Instead, the Corporate Governance,
People, Remuneration and Nominations
Committee has one independent director of
Heartland Bank and one non-independent
non-executive director of Heartland but, as
described above, the Board considers this
appropriate for Heartland .
The role of the Corporate Governance,
People, Remuneration and Nominations
Committee includes advising and making
recommendations to the Board regarding:
• corporate governance matters;
• people strategy, including organisation
structure, performance, succession
planning, development, culture, diversity
and remuneration strategy and policies
and any other strategic people initiatives;
• remuneration of the directors, CEO and
senior executives;
• the performance of the CEO including
setting and review of annual KPIs; and
• director and senior executive
appointments, Board composition and
succession planning .
Other Committees – Recommendation 3.5
The Board expects to shortly establish
a Sustainability Committee to oversee
Heartland’s sustainability strategy and
implementation plans . The Board is otherwise
comfortable that no other standing
Committees are necessary at this stage;
however other ad hoc Committees are
established for specific purposes from time
to time .
As at 30 June 2023, Heartland Bank had a
permanently constituted Risk Committee
and Audit Committee which are tasked with
working with management and reporting
their findings and recommendations to the
Heartland Bank Board.
Takeovers Response Manual –
Recommendation 3.6
The Board has documented and adopted
a Takeover Response Manual document,
which is designed to give the Board and
management clear direction on the steps
that needed to be taken following receipt of a
takeover offer.
The document, amongst other things,
includes an “independent director”
protocol for directors who are involved in
or associated with the bidder, talks to the
scope of independent advisory reports
to shareholders, and prompts the Board
to consider the option of establishing an
independent Takeover Committee following
receipt of a takeover offer.
Principle 4 – Reporting and
disclosures
The board should demand integrity in
financial and non-financial reporting, and
in the timeliness and balance of corporate
disclosures .
Heartland appreciates that its investors
and other stakeholders value both financial
5 G T Ricketts sadly passed away on 10 March 2023 and ceased to be a member of the Committee.
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and non-financial reporting, and Heartland
seeks to ensure that its investors have
timely access to full and accurate material
information about Heartland which is factual
and balanced .
Disclosure Policy – Recommendation 4.1
Heartland’s Disclosure Policy sets out
procedures that are in place to make
sure all material information is identified
and disclosed in a timely manner, and
to prevent the selective disclosure of
material non-public information. Under the
Policy, potentially ‘material information’
is required to be brought to the attention
of the Heartland General Counsel and/
or Group Chief Operating Officer who are
responsible for making a recommendation
to the ‘Decision Makers’, being the CEO and/
or representatives from the Heartland and/or
Heartland Bank Boards (as applicable), who
are ultimately responsible for determining
whether information is material, and
approving the form and content of material
information that is disclosed . Heartland also
monitors information in the market about
itself and will release information to the
extent necessary to prevent development
of a false market for the Group’s quoted
financial products.
Availability of key documents –
Recommendation 4.2
Heartland’s Code of Conduct, Board and
Committee Charters and the policies
recommended in the NZX Corporate
Governance Code, including the Disclosure
Policy, are available on Heartland’s website,
heartlandgroup.info . Heartland also
maintains copies of its stock exchange
announcements, full-year reports, investor
presentations and details of Annual General
Meetings, on its website .
Financial reporting and non-financial
disclosure – Recommendation 4.3
The Audit & Risk Committee oversees the
quality and timeliness of all external financial
reports, including all disclosure documents
issued by Heartland .
The Audit & Risk Committee oversees
the preparation of Heartland’s financial
statements and setting policy to ensure the
information presented is useful for investors
and other stakeholders. Heartland makes its
financial statements easy to read by using
clear, plain language, and structuring them so
that key information is prominent. In addition
to the full-year audit, Heartland’s external
auditor completes a review of the interim
financial statements.
The CEO and Chief Financial Officer are
also required to certify to the Audit & Risk
Committee that the financial statements
of the Group present a true and fair view
of Heartland and comply with all relevant
accounting standards .
Heartland is committed to delivering value
for its customers, shareholders, employees,
communities, partners and intermediaries .
This is the fifth year that Heartland has
reported against a Sustainability Framework
(previously known as the Corporate Social
Responsibility Framework) in order to provide
more detailed information on the value
created for Heartland’s stakeholders. Refer
to the Sustainability section on page 29 of
this Annual Report for detailed information
on Heartland’s environmental, social and
economic impact across New Zealand and
Australia .
Principle 5 – Remuneration
The remuneration of directors and executives
should be transparent, fair and reasonable .
Heartland’s remuneration strategy is
designed to create a high-performance
culture which attracts and retains quality
candidates by incentivising and rewarding
exceptional performance .
Director remuneration –
Recommendation 5.1
Actual director remuneration for FY2023 is
disclosed in the Directors’ remuneration
section on page 64 of this report .

57
Remuneration Policy –
Recommendation 5.2
Heartland has developed a Remuneration
Policy which explains its remuneration
strategy and its approach to setting
remuneration in more detail. The key
principles are that Heartland’s remuneration
policy:
• supports the attraction, retention and
engagement of quality, diverse candidates;
• does not discriminate on the basis of
gender, ethnicity, sexuality or any other
individual factor;
• should further Heartland’s aspiration
to achieve pay equity across the
organisation;
• rewards for high performance;
• has the flexibility to cater for Heartland’s
operational differences;
• recognises the link between company
performance and remuneration, and the
importance of creation of shareholder
value; and
• is understood by employees .
The full Remuneration Policy is available on
Heartland’s website, heartlandgroup.info .
Heartland’s Corporate Governance, People,
Remuneration and Nominations Committee
is kept up to date with relevant market
information and best practice, obtaining
advice from external advisors when
necessary .
Remuneration levels are reviewed annually
for market competitiveness and alignment
with strategic and performance priorities . All
senior executive performance is assessed
by the Corporate Governance, People,
Remuneration and Nominations Committee
with reference to Group risk management
policies and frameworks.
Non-executive directors’ remuneration
Total remuneration available to the Group’s
non-executive directors is determined
by Heartland’s shareholders . The current
aggregate approved amount by shareholders
is $1,600,000 per annum or A$1,400,000
(whichever is the greater amount from time-
t o -t i m e) .
Heartland’s policy is to pay directors’ fees in
cash . There is no requirement for directors to
take a portion of their remuneration in shares,
nor is there a requirement for directors to hold
shares in Heartland . However, as at 30 June
2023, a number of the directors held shares,
or a beneficial interest in shares, in Heartland
(see the Directors’ disclosures section on
page 60 of this Annual Report for further
d e t a i l s) .
Senior executive remuneration
The objective is to provide competitive
remuneration that aligns executives’
remuneration with shareholder value and
rewards the executives’ achievement of the
Group’s strategies and business plans .
All senior executives receive a base salary and
are also eligible to participate in short-term
and, in some cases, long-term incentive plans
under which they are rewarded for achieving
key performance and operating results.
CEO remuneration – Recommendation 5.3
Disclosure of the CEO’s remuneration is
included in the Directors’ disclosures section
on page 66 of this Annual Report .
Principle 6 – Risk Management
Directors should have a sound understanding
of the material risks faced by the issuer
and how to manage them . The Board
should regularly verify that the issuer has
appropriate processes that identify and
manage potential and material risks.
Risk management – Recommendation 6.1
The Board ensures that Heartland has a Risk
Management Programme in place which
identifies, manages and communicates
the key risks that may impact Heartland’s
business. Specific risk management
strategies have been developed for each
of the key risks identified. The Audit & Risk
Committee of the Board oversees the risk
management programme and strategy . The
Board and Audit & Risk Committee receive and
review regular reports on risk management.
Heartland also has in place insurance cover
for insurable liability and general business
risk.
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Health and safety – Recommendation 6.2
Heartland promotes a working environment
where it engages with all its people, so that
it can maintain a workplace that is mentally
and physically safe and healthy; and to
promote a positive health and safety culture .
Heartland engages with its people to identify,
assess, control and review risk, with a focus
on continuous improvement of health and
safety . In FY2023, Heartland expanded its
Health and Safety Policy to encompass
wellbeing and substantially progressed
initiatives identified to further enhance
processes in this regard .
All Group employees are required to read
and attest to Heartland’s Wellbeing, Health &
Safety Policy . Induction includes instruction
on this and associated procedures . The
Wellbeing, Health & Safety Committee,
representing all employees, convenes every
second month to discuss reported incidents,
accidents and near misses, initiatives and
tabled reports . Incidents, accidents and
near misses are registered in Heartland’s
Risk Management System (RMS) . A Health
& Safety Report that includes RMS data,
number of employee insurance claims,
number of employees accessing counselling,
and summaries of initiatives is provided to the
Executive Risk Committee and to the Board.
In the year ended 30 June 2023, there were no
notifiable events to report to WorkSafe New
Zealand.
Principle 7 – Auditors
External auditor relationship framework
and independence – Recommendation 7.1
The board should ensure the quality and
independence of the external audit process .
On 16 December 2022, Heartland
announced the Board had resolved to
appoint PricewaterhouseCoopers (PwC)
as Heartland’s new external auditor, having
accepted the resignation of KPMG . After a
long period of KPMG as Heartland’s external
auditor, the Board determined it was good
governance practice to change auditor .
The Audit & Risk Committee is responsible
for overseeing the external, independent
audit of Heartland’s financial statements.
This encompasses processes for sustaining
communication with Heartland’s external
auditors, ensuring that the ability of the
external auditors to carry out their statutory
audit role is not impaired, or could reasonably
be perceived to be impaired, to address
what other services may be provided by the
external auditors to Heartland, and to provide
for the monitoring and approval of any such
services .
Heartland’s External Auditor Independence
Policy provides guidelines to ensure that non-
audit related services do not conflict with the
independent role of the external auditor, and
the Audit & Risk Committee ensures that non-
audit work undertaken by the auditors is in
accordance with that Policy . That Policy also
sets out guidelines in relation to the tenure
and re-appointment of the external auditor,
which the Audit & Risk Committee ensures
are complied with . Refer to Heartland’s
website, heartlandgroup.info, for a copy of
the External Auditor Independence Policy .
The external auditor monitors its
independence and reports to the Audit &
Risk Committee bi-annually to confirm that
it has remained independent in the previous
six months, in accordance with Heartland’s
External Auditor Independence Policy and the
external auditor’s policies and professional
requirements . There have been no threats
to auditor independence identified during
FY2023 .
AGM attendance – Recommendation 7.2
Heartland’s external auditor attends its
Annual General Meeting to answer questions
from shareholders in relation to the audit .
Internal Audit – Recommendation 7.3
Heartland also has an internal audit function
which is independent of the external
auditors. The Audit & Risk Committee
approves the annual internal audit
assurance programme, which is developed in
consultation with management of Heartland .

59
Principle 8 – Shareholder rights
and relations
The board should respect the rights of
shareholders and foster constructive
relationships with shareholders that
encourage them to engage with the issuer .
Shareholder information and
communication – Recommendations 8.1
and 8.2
The Board is committed to maintaining a full
and open dialogue with all shareholders,
as outlined in the Disclosure Policy which
is available on Heartland’s website,
heartlandgroup.info. Heartland keeps
shareholders informed through:
• periodic and continuous disclosure to NZX
and ASX;
• information provided to analysts and
media during briefings;
• Heartland’s website (heartlandgroup.
info) where shareholders can access
financial, operational and key corporate
governance information;
• the Annual General Meeting, at which
shareholders’ have the opportunity to ask
questions; and
• annual reports .
The Board encourages full participation of
shareholders at the Annual General Meeting
to ensure a high level of accountability .
Heartland’s website has a clear “Contact
us” page that provides contact details for
Heartland’s share registrar and shareholder
enquiries, and provides the option to
receive communications from Heartland
electronically .
Major decisions – Recommendation 8.3
Where shareholders are required to vote
on a matter concerning Heartland, the
Board encourages shareholders to attend
the Annual General Meeting or to cast a
postal vote or appoint a proxy . All voting at
the Heartland’s Annual General Meeting is
conducted by way of poll on the basis of one
share, one vote .
Heartland equity raise – August 2022 –
Recommendation 8.4
On 23 August 2022, Heartland announced
a $200 million equity raise via a fully
underwritten $130 million placement of new
shares (Placement) and a non-underwritten
share purchase plan offer (SPP) of up to $70
million . The Placement was fully subscribed
and the SPP had applications totalling
approximately $68.8 million. For the purposes
of Recommendation 8.4 of the NZX Corporate
Governance Code, below is an explanation
of why this capital raising method was
preferred. Heartland elected to undertake
this offer structure having regard to the
volatile market conditions preceding the offer
and its objective to further diversify its share
register to promote increased liquidity on
both the NZX and ASX.⁶
Heartland endeavoured to treat existing
shareholders in eligible jurisdictions fairly
through the Placement via an allocation
policy that sought, to the extent possible,
to provide pro-rata allocations to existing
shareholders that bid for at least such
quantum into the Placement . To further
enhance fairness for retail shareholders who
participated in the SPP offer (which allowed
applications up to $50,000), downside pricing
protection was provided (but was ultimately
not required).⁷ This was intended to reduce
market risk for retail shareholders during the
offer period, which is not available under a
rights offer.
In addition, the proposed size of the
SPP ($70 million with ability to accept
oversubscriptions) was larger than retail
demand Heartland had previously seen from
its shareholder base . The 2017 SPP received
applications totalling $62 million and the 2017
rights offer received applications (including
oversubscriptions) for $67 million .
Publication of notice of meeting –
Recommendation 8.5
Heartland’s notice of meeting will be available
at least 20 working days prior to its Annual
General Meeting at heartlandgroup.info .
6 Heartland’s trading liquidity is lower than other NZX50 companies of similar size. Increasing liquidity is expected to attract further
institutional investors which is positive for Heartland and all shareholders .
7 The final price was the lower of the Placement price ($1.80) or a 2.5% discount to the 5-day volume-weighted average price (VWAP) prior to,
and including, the closing date for the SPP Offer. Shares were allocated under the SPP Offer at $1.80.
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Ngā whākitanga a te toihau
Directors’ disclosures
Directors
The following persons were directors of the Group during FY2023 .
CompanyDirectorsStatus
Heartland Group Holdings

Limited
Geoffrey Thomas Ricketts
Gregory Raymond Tomlinson
Ellen Frances Comerford
Jeffrey Kenneth Greenslade
Kathryn Mitchell
Geoffrey Edward Summerhayes
Independent Non-Executive Director
(Chair) (ceased directorship on
10 March 2023)¹
Non-Independent Non-Executive
Dire c to r (Ch air)²
Independent Non-Executive Director
Non-Independent Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Heartland Bank LimitedBruce Robertson Irvine
Jeffrey Kenneth Greenslade
Edward John Harvey
Shelley Maree Ruha
Kathryn Mitchell
Geoffrey Thomas Ricketts
Simon Ross Tyler
Independent Non-Executive Director
(Ch air)
Non-Independent Non-Executive
Director
Independent Non-Executive Director
Independent Non-Executive Director
Non-Independent Non-Executive
Director
Non-Independent Non-Executive
Director (ceased directorship on

10 March 2023)
Independent Non-Executive Director
(appointed 8 November 2022)
ASF Custodians Pty LimitedRichard Glenn Udovenya
Jeffrey Kenneth Greenslade
Australian Seniors Finance Pty
Limited
Jeffrey Kenneth Greenslade
Christopher David Andrew Cowell
Andrew Peter Dixson
Sharon Susan Yardley
Geoffrey Edward Summerhayes
Christopher Patrick Francis Flood
Ceased 9 May 2023
Ceased 9 May 2023
Ceased 9 May 2023
Appointed 9 May 2023
Appointed 9 May 2023
Heartland Australia Holdings Pty
Ltd
Jeffrey Kenneth Greenslade
Geoffrey Edward Summerhayes
Christopher David Andrew Cowell
Andrew Peter Dixson
Sharon Susan Yardley
Christopher Patrick Francis Flood
Ceased 16 February 2023
Ceased 16 February 2023
Ceased 16 February 2023
Appointed 16 February 2023
Heartland Australia Group Pty LtdJeffrey Kenneth Greenslade
Christopher David Andrew Cowell
Andrew Peter Dixson
Sharon Susan Yardley
Geoffrey Edward Summerhayes
Christopher Patrick Francis Flood
Ceased 9 May 2023
Ceased 9 May 2023
Ceased 9 May 2023
Appointed 9 May 2023
Appointed 9 May 2023
Heartland NZ Trustee Limited Philippa Rosemary Drury
Christopher Patrick Francis Flood
Resigned 31 August 2022
Heartland PIE Fund LimitedJeffrey Kenneth Greenslade
Bruce Robertson Irvine
Leanne Gloria Lazarus
Ceased 18 November 2022
Appointed 18 November 2022
1 Geoff Ricketts stepped down as Chair on 20 February 2023. On 10 March 2023, Geoff Ricketts sadly passed away and ceased to be a director
of Heartland .
2 Greg Tomlinson assumed the role of Chair on 20 February 2023 .

61
CompanyDirectorsStatus
MARAC Insurance LimitedAndrew James Aitken
Christopher Patrick Francis Flood
Christopher Robert Mace
VPS Properties LimitedChristopher Patrick Francis Flood
Fuelled Limited Christopher Patrick Francis Flood
StockCo Holdings 2 Pty Limited Jeffrey Kenneth Greenslade
Douglas Robert Snell
Andrew Peter Dixson
Geoffrey Edward Summerhayes
StockCo Holdings Pty Limited Jeffrey Kenneth Greenslade
Douglas Robert Snell
Andrew Peter Dixson
StockCo AgriCapital Pty Ltd Jeffrey Kenneth Greenslade
Douglas Robert Snell
Andrew Peter Dixson
StockCo Feedlot Holdings Pty
Limited
Jeffrey Kenneth Greenslade
Douglas Robert Snell
StockCo Feedlot Capital Pty
Limited
Jeffrey Kenneth Greenslade
Douglas Robert Snell
StockCo Australia Management
Pty Ltd
Jeffrey Kenneth Greenslade
Douglas Robert Snell
Andrew Peter Dixson
When determining whether a director of Heartland is independent, the factors described in
the NZX Corporate Governance Code as possibly impacting a director’s independence were
considered and it was determined that none of those factors applied to the directors noted
above as independent in such a way that those factors might interfere, or might reasonably
be seen to interfere, with the director’s capacity to bring an independent judgment to bear on
issues before the Board, to act in the best interests of Heartland and to represent the interests
of its shareholders generally .
Interests Register
The following are the entries in the Interests Register of the Group made during FY2023 .
Indemnification and insurance of directors
Heartland has given indemnities to, and has effected insurance for, directors of the Group to
indemnify and insure them in respect of any liability for, or costs incurred in relation to, any act or
omission in their capacity as directors, to the extent permitted by the Companies Act 1993. The
cost of the insurance premiums to the Group for FY2023 was $383,250 (excluding GST).
Share dealings by directors
Details of individual directors’ share dealings as entered in the Interests Register of Heartland
and Heartland Bank under Section 148(2) of the Companies Act 1993 during the year ended 30
June 2023 are as follows (all dealings are in ordinary shares unless otherwise specified):
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J K Greenslade
Date of acquisition/
disposal
Nature of relevant interestAcquisition /
disposal
No. of sharesConsideration
29 August 2022Acquisition of shares under Heartland’s
$130 million placement
Acquisition27,777$49,998.60
16 September 2022Acquisition of shares pursuant to
vesting of performance rights plan
Acquisition1,0 6 4 ,7 74Nil
16 September 2022A proportion of the shares issued
pursuant to vesting of the performance
rights were immediately acquired by
Heartland in order to fund the tax liability
arising for the recipients upon the issue
of shares under the performance rights
plan
Disposal415 ,261$761,126 .59
16 September 2022Off market transfer of sharesDisposal194,854Nil
25 November 2022Off market transfer of sharesDisposal75,000Nil
E J Harvey
Date of acquisition/
disposal
Nature of relevant interestAcquisition /
disposal
No. of sharesConsideration
9 September 2022Acquisition of shares under Heartland’s
$70 million share purchase plan
Acquisition10,184$17,999 .20
22 March 2023Allotment under DRPAcquisition4,939$8,085.13
B R Irvine
Date of acquisition/
disposal
Nature of relevant interestAcquisition /
disposal
No. of sharesConsideration
29 August 2022Acquisition of shares under Heartland’s
$130 million placement
Acquisition25,000$45,000 .00
9 September 2022Acquisition of shares under Heartland’s
$70 million share purchase plan
Acquisition28,290$49,999 .75
9 September 2022Acquisition of shares under Heartland’s
$70 million share purchase plan
Acquisition28,290$49,999 .75
K Mitchell
Date of acquisition/
disposal
Nature of relevant interestAcquisition /
disposal
No. of sharesConsideration
29 August 2022Acquisition of shares under Heartland’s
$130 million placement
Acquisition55,000$99,000 .00
G T Ricketts
Date of acquisition/
disposal
Nature of relevant interestAcquisition /
disposal
No. of sharesConsideration
29 August 2022Acquisition of shares under Heartland’s
$130 million placement
Acquisition1,666,666$2,999,998.80

63
G E Summerhayes
Date of acquisition/
disposal
Nature of relevant interestAcquisition /
disposal
No. of sharesConsideration
27 October 2022AcquisitionAcquisition5,000A$7,618.51
28 October 2022AcquisitionAcquisition5,000A$7,750 .00
31 October 2022AcquisitionAcquisition5,000A$7,900 .00
1 November 2022AcquisitionAcquisition5,000A$7,900 .00
G R Tomlinson
Date of acquisition/
disposal
Nature of relevant interestAcquisition /
disposal
No. of sharesConsideration
29 August 2022Acquisition of shares under Heartland’s
$130 million placement
Acquisition10,942,939$19,697,290 .20
General notice of disclosure of interests in the interests register
Details of any changes to Heartland and Heartland Bank directors’ general disclosures entered in
the relevant interests register under Section 140 of the Companies Act 1993 during FY2023 are as
follows:
E J ComerfordAppointed director to IVM InterSurer B .V ., Hollard Investments B .V .,
Hollard Investments II BV and Greenstone Holdco Pty Ltd from 1 November 2022 .
Ceased directorships of Hollard Holdings Australia Pty Ltd and

The Hollard Insurance Company Pty Ltd from 1 October 2022 .
E J HarveyCeased directorship of KMD Brands Limited from 1 December 2022 .
B R IrvineNo amendments for the year ended 30 June 2023 .
K MitchellAppointed director to The A2 Milk Company Limited from 1 June 2023.
G T Ricketts³No amendments for the year ended 30 June 2023 .
S M RuhaNo amendments for the year ended 30 June 2023 .
G R TomlinsonNo amendments for the year ended 30 June 2023 .
J K GreensladeNo amendments for the year ended 30 June 2023 .
G SummerhayesAppointed director of Heartland Australia Group Pty Limited and

Australian Seniors Finance Pty Limited from 9 May 2023 .
S R TylerNo amendments for the year ended 30 June 2023 .
Details of Heartland and Heartland Bank directors’ general disclosures entered in the relevant
interest register under Section 140 of the Companies Act 1993 prior to 1 July 2022 can be found in
earlier Annual Reports .
Specific disclosures of interest in the interests register
There were no specific disclosures of interests in transactions entered into by the Group
(including Heartland Bank) during the period 1 July 2022 to 30 June 2023.
Information used by directors
No director of the Group (including Heartland Bank) disclosed use of information received in his
or her capacity as a director that would not otherwise be available to that director .
3 No amendments were noted before Geoff Ricketts ceased being a director on 10 March 2023.
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Heartland and Heartland Bank directors’ relevant interests
As at 30 June 2023 .
DirectorNumber of ordinary shares –
beneficial
Number of ordinary shares –
non-beneficial⁴
Number of options
J K Greenslade2,400,514NilNil
E J Harvey162,9106,504,266Nil
B R Irvine699,4026,504,266Nil
K Mitchell108,088NilNil
S M Ruha158,536NilNil
G E Summerhayes20,000NilNil
G R Tomlinson69,335,936NilNil
Directors’ remuneration
The current total fee pool for the non-executive directors of the Group approved by shareholders
at the Annual General Meeting of Heartland held on 8 November 2022 is NZ$1,600,000 per annum
or A$1,400,000 (whichever is the greater amount from time-to-time) effective for FY2023 and
onwards .
The table below sets out the fees payable to the non-executive directors of Heartland for FY2023
based on the position(s) held .
Board/Committee⁵Position Fees (per annum)
Board of Directors
Chair
Member
$150,000
$100,000
Heartland Audit & Risk Committee
Chair
Member
$15,000
Nil
Heartland Bank Audit Committee
Chair
Member
$15,000
Nil
Heartland Bank Risk Committee
Chair
Member
$15,000
Nil
Corporate Governance, People, Remuneration and Nominations
Committee
Chair
Member
$15,000
Nil
The total remuneration and value of other benefits⁶ received by each non-executive director who
held office in Heartland and/or any of its subsidiaries during the year ended 30 June 2023 is set
out in the table below . Directors’ fees exclude GST where appropriate .
DirectorBoard FeesHeartland
Audit & Risk
Committee
Heartland
Bank Audit
Committee
Heartland
Bank Risk
Committee
Heartland
Corporate
Governance,
People,
Remuneration
and
Nominations
Committee
OtherTotal
Remuneration⁷
Heartland and Heartland Bank directorships
E F Comerford$100,000$15,000----$115,000
E J Harvey$100,000-$15,000---$115,000
4 The non-beneficial interest in the 6,504,266 shares arises from those directors being a trustee of the Heartland Trust, which held 6,504,266
shares in Heartland as at 30 June 2023 .
5 If a director sits on both the Heartland and Heartland Bank Boards, they are only entitled to receive one fee.
6 In addition to these amounts, Heartland meets costs incurred by directors, which are incidental to the performance of their duties . This includes
providing directors with telephone concessions and paying the cost of directors’ travel . As these costs are incurred by Heartland to enable
directors to perform their duties, no value is attributable to them as benefits to directors for the purposes of the tables included in this report.
7 For the purposes of the total remuneration column in this table, A$ fees have been converted to NZ$ using an exchange rate of $1.0928 and then
rounded .

65
DirectorBoard FeesHeartland
Audit & Risk
Committee
Heartland
Bank Audit
Committee
Heartland
Bank Risk
Committee
Heartland
Corporate
Governance,
People,
Remuneration
and
Nominations
Committee
OtherTotal
Remuneration⁷
Heartland and Heartland Bank directorships
B R Irvine$150,000-- ---$150,000
K Mitchell $100,000-----$100,000
G T Ricketts$112,500⁸-- -$11,250-$123,750
S M Ruha$100,000--$15,000--$115,000
G R Tomlinson$100,000⁹-----$100,000
G E
Summerhayes
$100,000-----$100,000
S R Tyler$64,673.9¹⁰-----$64,673 .91
Subsidiary directorships
A J Aitken$32,000¹¹-----$32,000
E F ComerfordA$55,250¹²-----$60,385
P Drury$3,333¹³-----$3,333
C R Mace$15,000¹⁴-----$15,000
R G UdovenyaA$30,000¹⁵-----$32,800
G E
Summerhayes¹⁶
A$250,390-----$273,650
To t a l$1,400,862.24
Remuneration and/or other benefits from the company and its subsidiaries to executive
directors
The remuneration for the executive director (being, in Heartland’s case, the CEO) includes a fixed
remuneration component, a variable remuneration component comprising short-term incentives
(STIs) and long-term incentives (LTIs), and other benefits. LTIs are offered to selected employees
(including the CEO) in order to incentivise them to enhance long term shareholder value.
8 Fees paid until 31 March 2023.
9 G Tomlinson elected not to receive the Chair fee component for the financial year ended 30 June 2023.
10 Fees paid from S Tyler’s commencement as a director on 8 November 2022.
11 Fees paid to A J Aitken as a director of MARAC Insurance Limited.
12 Fees paid to E F Comerford by Heartland Australia Group Pty Limited and Heartland Australia Holdings Pty Limited (E F Comerford resigned as
a director from 26 July 2019 but still receives fees in return for consultancy services provided to these companies) .
13 Fees paid to P Drury as a director of Heartland NZ Trustee Limited until her resignation effective 31 August 2022.
14 Fees paid to C R Mace as Chair of MARAC Insurance Limited .
15 Fees paid to R G Udovenya as a director of ASF Custodians Pty Limited.
16 Fees paid to G E Summerhayes as a director of Heartland Australia Holdings Pty Limited, Heartland Australia Group Pty Limited and
Australian Seniors Finance Pty Limited . Includes deferred payment of FY2022 directors fees of A$21,390 so as not to exceed the directors’
fee cap for FY2022 prior to shareholder approval at the 2022 Annual Meeting to increase the total fee pool for non-executive directors . G E
Summerhayes is the Chair of Heartland Australia Holdings Pty Ltd, the parent company of Heartland’s Australian group and (subject to the
completion of the Challenger Bank acquisition, which remains subject to regulatory approvals) would ultimately chair Heartland’s banking
business in Australia. In setting G E Summerhayes’ remuneration, Heartland took into account independent advice about market rates,
having identified the need in FY2022 to engage the assistance of an Australian-based independent non-executive director who knows the
Australian ADI sector well .
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66
CEO remuneration
In FY2023, the CEO received a fixed salary, a variable remuneration component comprising STI, and
other benefits as detailed in the below tables. The tables also show a comparison between FY2022
and FY2023 and a summary of the CEO’s total remuneration over the last five financial years.
Consistent with the approach taken last year, Heartland has presented the summary below
using the cost to Heartland (being the accounting cost) of all current LTI grants made to the CEO .
The accounting cost of all current LTI grants differs from the value of the awards which actually
vested, noting that no awards vested in respect of which the final financial year for performance
measured was FY2023. This is because the accounting cost of a grant reflects the uncertainty
around whether the relevant performance criteria will be met, and is spread over the entire
performance period of that grant .
CEO remuneration (FY2023 and FY2022)
Financial year
ended
SalaryBenefits¹⁷STI
(At Risk Pay)
Total Salary,
Benefits and STI
LTI¹⁸ (At Risk Pay)
- Accounting cost to Heartland*
30 June 2023$1,089,200$10,800$990,000$2,090,000FY2023$466,901¹⁹
30 June 2022$1,089,200$10,800$975,000$2,075,000FY2022$651,294²⁰
* This is the accounting cost of all current LTI grants made to the CEO, which differs from the value of awards which
actually vested. No LTI awards vested to the CEO in respect of which the final financial year for performance
measured was FY2023 .
Five-year summary of total CEO remuneration
This year, Heartland has presented the below summary using the value of the awards which
actually vested during the relevant financial year.
Financial year
ended
Percentage STI
against maximum
Value of LTI awards
vested in that
financial year
Percentage LTI
vesting against
maximum²¹
Span of relevant LTI
performance period
30 June 202390%N/AN/AN/A
30 June 202289%$2,000,000100%5 years
30 June 2021100%N/AN/AN/A
30 June 202096%N/AN/A N/A
30 June 201945%$1,379,161100%F Y2019²²
Breakdown of CEO At Risk Pay (FY2023)
DescriptionPerformance measuresPercentage
achieved
STIUp to 100% of base salary based on the
achievement of financial and non-financial
performance expectations .
Based on achievement of financial and

non-financial performance expectations.²³
90%
LT I
N/A. No awards vested to the CEO in respect of which the final financial year for performance measured was FY2023.
STI Scheme
The CEO is entitled to receive STIs which are cash payments, determined by the Board, and paid
at the end of a financial year for exceeding performance expectations in the relevant financial
year. Ultimately, STI payments are entirely discretionary, and entitlement is not guaranteed even
if performance expectations have been met or exceeded .
17 Motor vehicle .
18 LTI plan valuation was updated during the year to provide for market performance conditions and a revised number of Performance Rights
expected to be vested . The updated valuation resulted in a lower accounting cost of LTI grants on issue compared to the previous valuation .
19 Accounting cost of FY2021 and FY2022 grants at updated valuation, spread over their respective 4-year service periods (noting that FY2021
grant was amended to extend its service period from the original 3 to 4 years) .

67
CEO Grant under Performance Rights Scheme (FY2023 Grant)
Note that the FY2023 Grant under Heartland’s Performance Rights Scheme has not yet been
made to participants, but the details of the grant made to the CEO will be disclosed at the time
the grant is made .
Five-year summary of Heartland’s TSR performance (30 June 2018 – 30 June 2023)
43.9%
38.6%
(
50%)
(25%)
-
25%
50%
75%
100%
125%
Jun-18Dec-18Jun-19Dec-19Jun-20Dec-20Jun-21Dec-21Jun-22Dec-22Jun-23
Summary of Heartl and TSR performance (Last five years)
Heartland TSRNZX50 TSR

The above five-year total shareholder return (TSR) performance graph is provided to aid
comparability between Heartland’s performance and the remuneration information provided in
this section. TSR has been calculated as at the end of the five-year period to 30 June 2023,
including the benefit of imputation credits. A comparison is shown against the NZX50 Index
which measures the performance of the 50 largest eligible stocks listed on the NZX Main Board by
float-adjusted market capitalisation.
CEO remuneration as a multiple of employee remuneration
The CEO’s salary as a multiple of the employee average is 10.41 times (FY2022: 11.08 times), and his
total remuneration as a multiple of the employee average is 19.22 times (FY2022: 23.17 times).
20 In the FY2022 annual report, it was noted that the cost to Heartland for FY2022 was $990,103. The figure included in this table reflects the
accounting cost of the FY2018/2019 grant at updated valuation, spread over its modified 3-year service period (noting that this grant vested
in September 2022, and the benefit on its revaluation was recognised in full in FY2023). Also includes accounting cost of FY2021 and FY2022
grants at updated valuation, spread over their respective 4-year service periods .
21 Where “N/A”, there were no maximum limits for the relevant period.
22 The service period for the Senior Executive Scheme shares which are being treated as vesting in FY2019 was FY2019 .
23 STI payments are entirely discretionary and entitlement is not guaranteed even if measures are achieved .
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Ngā utu ā-tumu whakarae
Executive remuneration
RemunerationNumber of employees
$100,000 - $109,999 27
$110,000 - $119,999 18
$120,000 - $129,999 25
$130,000 - $139,999 29
$140,000 - $149,999 27
$150,000 - $159,999 13
$160,000 - $169,999 11
$170,000 - $179,999 11
$180,000 - $189,999 6
$190,000 - $199,999 3
$200,000 - $209,999 1
$210,000 - $219,999 3
$220,000 - $229,999 2
$240,000 - $249,999 5
$250,000 - $259,999 1
$260,000 - $269,999 1
$270,000 - $279,999 1
$280,000 - $289,999 2
RemunerationNumber of employees
$290,000 - $299,999 1
$300,000 - $309,999 3
$310,000 - $319,999 2
$340,000 - $349,999 3
$350,000 - $359,999 1
$360,000 - $369,999 3
$400,000 - $409,999 1
$ 410,0 0 0 - $ 419,999 1
$440,000 - $449,999 1
$480,000 - $489,999 1
$510,000 - $519,999 1
$540,000 - $549,999 1
$560,000 - $569,999 1
$640,000 - $649,999 1
$910,000 - $919,999 1
$1,000,000 - $1,019,999 1
$1,030,000 - $1,039,999 1
Grand total210
Ngā pārongo mō te hunga whaipānga
Shareholder information
Spread of shares
Set out below are details of the spread of shareholders of Heartland as at 1 August 2023 (being a
date not more than two months prior to the date of this Annual Report) .
Size of holding Number of shareholders Total shares % of issued shares
1 - 1,000 shares 1,480 780,700 0 .11
1,001 - 5,000 shares 3,239 9 , 2 5 7,7 5 3 1 .30
5,001 - 10,000 shares 2,309 17,088,169 2 . 40
10,001 - 50,000 shares 4,719 107,723,449 15 .16
50,001 - 100,000 shares 940 65,286,483 9 .20
100,001 shares and over 646 510,399,383 71.83
TOTAL 13,333 710,535,937 100.00
The number of Heartland employees (including former employees, and excluding directors) who
received remuneration (including non-cash benefits) in excess of $100,000 during FY2023 is
detailed in the remuneration bands below .

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Twenty largest shareholders
Set out below are details of the 20 largest shareholders of Heartland as at 1 August 2023 (being a
date not more than two months prior to the date of this Annual Report) .
RankShareholderTotal shares % of issued shares
1 Harrogate Trustee Limited 69,335,936 9 .76
2 FNZ Custodians Limited 53,659,684 7 . 5 5
3 Bnp Paribas Nominees NZ Limited 22,802,718 3 . 21
4 New Zealand Depository Nominee 20,422,362 2.87
5 Custodial Services Limited 17,929,361 2 .52
6 Oceania & Eastern Limited 14,933,951 2 .10
7 Hobson Wealth Custodian Limited 14,875,025 2 .09
8 Citibank Nominees (NZ) Limited 14,128,548 1 .99
9 JPMORGAN Chase Bank 12,951,578 1.82
10 Philip Maurice Carter 12,016,647 1 .69
11 Accident Compensation Corporation 10,420,218 1 .47
12 HSBC Nominees (New Zealand) Limited <040-016842-230> 9,295,615 1 .31
13 HSBC Nominees (New Zealand) Limited 8,770,441 1 .23
14 Tea Custodians Limited 7,834,745 1 .10
15 Heartland Trust 6,504,266 0 .92
16 Public Trust 6,425,187 0 .90
17 Pt Booster Investments Nominees Limited 6,411,156 0 .90
18 Forsyth Barr Custodians Limited 6,340,321 0.89
19 FNZ Custodians Limited 6 ,19 5 ,679 0.87
20 Jarden Custodians Limited 5,000,000 0 .70
Total326,253,438 45.89
Substantial product holders
As at 30 June 2023, Heartland had 709,658,200 ordinary shares on issue and, according to
Heartland’s records and disclosure notices provided to Heartland, the following persons were
substantial product holders of Heartland .
NameNumber of shares Class of shares
% of total number of

shares in class
Harrogate Trustee Limited and Gregory
Raymond Tomlinson
69,335,936 Ordinary9 .76
Jarden Securities Limited and Harbour
Asset Management Limited¹
35,313,655Ordinary5 .01
1 Details as per the ‘Disclosure of beginning to have substantial holding’ released by these entities to Heartland and the NZX Limited on
19 December 2022 .
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He pārongo atu anō
Other information
Auditors’ fees
PricewaterhouseCoopers (PwC) were
appointed as auditors of Heartland and its
subsidiaries on 16 December 2022, taking over
from KPMG . After a long period with KPMG
as Heartland’s external auditor, the Board
determined it was good governance practice
to change auditor . The amount payable by
Heartland and its subsidiaries to PwC as
audit fees during FY2023 was $1,046,000 . The
amount of fees payable to PwC for non-audit
work during FY2023 was $176,000. These
non-audit fees were primarily for regulatory
assurance services, agreed upon procedures
engagements, supervisor reporting, tax work
and other non-assurance work. PwC was
engaged to carry out the tax work prior to the
appointment as external auditor . PwC carried
out other non-assurance work prior to the
appointment of PwC as external auditor .
The amount payable to KPMG as audit fees,
prior to the appointment of PwC, in FY2023
was $40,000 .
Credit rating
As at the date of this Annual Report, Heartland
has a Fitch Australia Pty Limited long-term
credit rating of BBB (outlook negative).
Donations
The total amount of donations made by
Heartland during FY2023 was $5,870. No
political donations were made during FY2023 .
Exercise of NZX disciplinary
powers
NZX Limited did not exercise any of its powers
under Listing Rule 9 .9 .3 in relation to the
Group during FY2023 .
NZX waivers
Below is a summary of the waivers granted
by NZ RegCo to Heartland on 22 August
2022 relating to Heartland’s $200 million
equity raise via a fully underwritten $130
million placement of new shares and a non-
underwritten SPP offer of up to $70 million
which was announced on 23 August 2022
(Offer) as well as Heartland’s LTI Scheme:
• Waiver under Listing Rule 3.14.1: This
Listing Rule requires an issuer to release
details of a proposal to pay a dividend at
least five business days before the record
date. The waiver permitted Heartland to
have a shorter three business day notice
period . Heartland wished to set the record
date so that any shares allotted under the
Offer would not be able to participate in
the dividend relating to FY2022 . This waiver
was granted by the NZ RegCo on the
conditions set out in the decision and for
the reasons described in its decision .
• Waiver from Listing Rule 4.14.1(b)(ii)(A):
This waiver permits Heartland to acquire
Heartland shares from an employee
who is also a director of Heartland . This
waiver was obtained from NZ RegCo in
the context of the LTI scheme operated
by Heartland under which selected
employees are offered performance
share rights (PSRs) to be converted to
ordinary shares in Heartland (Shares),
for nil consideration, subject to certain
performance hurdles being met (Scheme) .
Heartland wished to assist participants in
the Scheme to meet their tax obligations
arising when the PSRs vested by offering
to pay PAYE on the participants’ behalf and
funding the participants’ corresponding
liability to Heartland by buying back
an amount of the Shares equal in
value to the participants’ PAYE liability .
Listing Rule 4.14.1(b)(ii)(A) would have
prevented Heartland purchasing shares
off a participant who is also a director of
Heartland, so a waiver from NZ RegCo was
sought to enable all Scheme participants
to receive the buyback offer. This waiver
was granted by the NZ RegCo for the
reasons described in its decision .
For further information about the equity raise
refer to page 58 in the Corporate Governance
section of the FY2022 Annual Report, and
page 59 in the Corporate Governance section
of this Annual Report .
No other waivers were granted to Heartland
or relied on by Heartland during FY2023 .