Steadfast : 1H22 results investor presentation

Steadfast Group	2022
1H22 Results
Investor Presentation	22 February

r personal use only

onlyuse personal2 r

Table of Contents

1H22 Results Investor Presentation

03

11

20

1H22 Highlights

1H22 Financial Summary

Appendices

onlyuse personal3 r

1H22 Highlights

onlyuse personal4

Steadfast Group

Increase in underlying NPAT of 26.4%

Underlying earnings 1

• EBITA +22.7% to $153.9m
• NPAT +26.4% to $76.3m
• NPATA2 +25.4% to $93.6m
• Diluted EPS (NPAT) +20.5% to 8.41 cps
• Interim dividend +18.2% to 5.2 cps fully franked

1H22 EBITA Mix

3%

45%52%

	Steadfast Brokers		UW Agencies		Other

Statutory earnings1

• NPAT of $104.9m v $73.4m in 1H21

Broker and underwriting agency growth

• Equity brokers (including network) underlying EBITA +16.0% (refer slide 15)
• Underwriting agencies' aggregate underlying EBITA +21.5% (refer slide 16)
• The majority of Australian and New Zealand brokers are now using SCTP

Acquisition growth

• Completed EPS accretive acquisitions for a net cost of $507m (refer slide 5)

Future growth

 Unutilised debt facility of $315m available as at today (plus free cash flow)

r

1. For reconciliation of statutory to underlying earnings, refer to slides 12 and 41. Underlying earnings shown above excludes mark-to-market adjustment for the Johns Lyng Group investment.
2. Calculated on a consistent basis since the IPO.

onlyuse personal5 r

Steadfast Group

1H22 operating update

Acquisitions

• Completed EPS accretive acquisitions (including Coverforce) for a cost of $507m net of step downs
• Coverforce, completed in late August, is performing in line with expectations
• Continue to deliver on our Trapped Capital Project1, with:

⁻ 18 completed acquisitions representing $10.6m EBITA	⁻ 30 further indicative valuations provided representing $16.4m EBITA
⁻	5 signed term sheets and due diligence commenced representing $1.7m EBITA	⁻	27 further expressions of interest
⁻	8 further term sheets issued representing $18.7m EBITA	⁻	57 further discussions required to establish interest

Steadfast Risk Group product expansion

• Continued to rollout our comprehensive suite of enhanced risk management solutions and systems to our broker network
• Steadfast Risk Group aims to classify risk into components and create platforms that effectively enable a broker to either scale up or dial down risk according to complexity of their client's business and the risks associated with that industry
• Established Captives and Mutuals for hard to place products

SCTP enhancement

• Continued to rollout more product and insurer offerings, whilst improving policy wording and the integration capacity to onboard insurers more efficiently

International expansion strategy

• unisonSteadfast - the integration of Steadfast management will commence in 2H22 subject to Covid restrictions
• Analysis of the potential for international expansion of SCTP continues
• London office reopens at the end of February 2022

Environmental, Social and Governance

• Steadfast is establishing a Carbon Neutral Transition Plan that is expected to be published in 2022. ESG strategy initiatives to be rolled out to our broker network services
• Steadfast's second level Innovate Reconciliation Action Plan (RAP) has been approved by Reconciliation Australia

Steadfast Claims Solutions

• Commenced operations to deliver improved claims solutions for Steadfast brokers and Steadfast Underwriting Agencies and their clients

1 Trapped Capital Project status figures as at 22 February 2022.