Suncorp : 2020 Suncorp AGM Chairman and Group CEO Addresses

ASX announcement

22 October 2020

Suncorp 2020 AGM Chairman's and Group CEO's addresses

Suncorp Group Limited's (ASX: SUN | ADR: SNMCY) 2020 AGM will be held today at 10.00am Brisbane time (11.00am Sydney time). The meeting will be held in an entirely online format and can be accessed at agmlive.link/suncorp20.

More information on the AGM, including the Notice of 2020 Annual General Meeting, the Link Online AGM Guide and a list of frequently asked questions are available on our Suncorp Group website. If you are unable to join the AGM live, a recording will be made available shortly after the conclusion of the meeting on the Suncorp Group website.

The Chairman's and Group CEO's addresses to be delivered at the AGM are enclosed.

Authorised for lodgement with the ASX by the Company Secretary.

ENDS

For more information contact:

Media (Australia)	Pip Freebairn	[phone]
		[e-mail]
Analysts / Investors	Andrew Dempster	[phone]
		[e-mail]
	Jatin Khosla	[phone]
		[e-mail]

1 Suncorp Group Limited | ABN 66 145 290 124 | Level 28, 266 George Street, Brisbane Qld 4000 suncorpgroup.com.au

2020 Annual General Meeting

Chairman's and Group CEO's Addresses

It was only a year ago that we were in Brisbane, my first AGM as your Chairman. Steve Johnston had just been appointed as your CEO, and I recognised that it was a new era of transparency and accountability for the financial services industry. Since then, Australia has experienced one of the worst seasons of natural disasters on record: 12 events, including bushfires, hailstorms and floods. Parts of Australia continue to experience terrible drought. And, of course, we are now living with the devastating health, social and economic impacts of the global COVID-19 pandemic, which has presented us with some of the biggest challenges of our collective lifetimes.

I have certainly never experienced a year like this, and I'm sure it's the same for many of our shareholders and customers.

Suncorp's response

I am proud of the way your management team and Board has responded to all these challenges. We managed around 80,000 claims related to natural disasters in the past financial year, mostly from New South Wales and Victoria, covering storm, hail, flood damage and of course bushfires. We know these events are devastating for the communities that we serve. And for Suncorp and our employees, it is at these moments that we are reminded of the importance of our purpose: to build futures and protect what matters.

Since the outset of the pandemic, your Board and management have been meeting in this virtual format. Initially these meetings were weekly, but we are back to a regular rhythm and this is now our normal way of working, due to ongoing border closures and restrictions. When COVID-19 emerged as an issue, our focus was on issues such as the health and safety of our people and customers; how to support customers in financial distress; as well as ensuring our strong financial position was protected. Once it became clear the impacts would be lasting, our attention turned to the longer-term outlook and implications. To help us navigate the changing landscape the Board has heard from a range of experts including leading economists, cyber-security specialists

and professionals who work with vulnerable customers.

COVID-19 impacts

I remain concerned about the ongoing impacts of this crisis, particularly the likely effects on mental health and wellbeing. We are all aware of the direct impacts of the pandemic on mental health; weeks, and in some cases, months, of social isolation from families, colleagues and community activities.

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2020 Suncorp Group Limited Annual General Meeting Chairman's and Group CEO's Addresses

But we must also recognise that during recessions, mental health issues increase - for example, by reducing employment quality and choices, and increasing the risks of poverty and exclusion.

We know that many small business owners are struggling to kick start their businesses; self-funded retirees are living with lower investment income; and many women are shouldering increased caring responsibilities. While young people have disproportionately suffered job losses, and many face a challenging transition from education to the workforce, middle-aged and older workers are also at risk of long-term unemployment as business models change as a result of COVID-19.

To address these impacts, it is clear that we need to adapt and manage to a new way of living and working, becoming more adaptable and agile in our approach so that we can live in a COVID-safe way.

Governments, businesses and the community must work together to enable the Australian and New Zealand economies to recover as quickly as possible in the months ahead. The reopening of borders is key to helping restart our economy. We understand that this must be done carefully and sensibly, with the health and safety of the community in mind; but it will be critical step to take us forward.

Financial performance and dividend

Turning to our FY20 financial performance, in August we announced solid results that demonstrated the financial and operational strength of our business. Group net profit after tax was $913 million while cash earnings were down 33 per cent to $749 million, largely reflecting COVID-19 impacts such as lower investment income, provisioning and reserves.

Your Board understands that dividends are important to our retail and institutional shareholders and that you expect a predictable and sustainable return. For the full year, our fully franked dividends totalled 36 cents per share. Our final, 10 cents per share dividend was paid yesterday. We felt it was important to pay our shareholders a final dividend, while at the same time conforming to APRA's regulatory guidance. The Board also believes that in these uncertain times, it is prudent to maintain a strong and conservative capital position, and we have worked to get this balance right for you, our shareholders.

Accelerating transformation

While COVID-19 has challenged us in ways we never expected, it has been a catalyst to focus on new possibilities, including new ways of working and the acceleration of our transformation through digitisation and automation.

Suncorp has been a leader in flexible working for many years; in fact, this has been part of our employees' lives since the Brisbane floods of 2011, when we recognised the need to enable greater levels of remote working. More hybrid working models are likely in the future. The ability to attract a wider range of talent is significant, while there are also efficiencies to be gained. However careful consideration will need to be given to how, and where, work is done. There is no doubt that some work is best done in a collaborative and social setting. Bringing people together is also an important way of ensuring that purpose, culture and values are consistently embedded and understood across the company.

It is not only the way we work that is transforming, it is also how we work. Digitisation and automation are removing manual processes and customer pain points, which means the workforce of the future will need different skills and capabilities. Artificial intelligence and its underlying technologies are reshaping the insurance industry, from distribution, to underwriting and claims. For example, connected devices and sensors including drones can work together to speed up traditional claims assessment methods, or even detect issues before they occur.

There is no doubt that jobs will change with these technological advances. The workforce of the future will need to reskill and upskill; build social skills that complement technical skills; become more resilient and adaptable; and harness greater creativity. At Suncorp, our Future Ready learning program is designed to support our people with this transition. These trends are at the heart of our efforts to reshape our organisation and build an even stronger, more efficient and sustainable business, which Steve will cover in his presentation.

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2020 Suncorp Group Limited Annual General Meeting

Chairman's and Group CEO's Addresses

Important issues for our future

One of the key roles of a Board is to set up the organisation to balance the demands of today with our longer- term requirements. This means we must carefully consider the risks and opportunities we face, as well as the expectations of different stakeholders including shareholders, customers, government and regulators, employees and the broader community.

As an insurance company and bank, the impact of climate change is one of our most material issues. Our Climate Change Action Plan, Environmental Performance Plan and climate-related financial disclosures collectively show how we are responding to the challenges. To adapt to our changing climate, we continue to advocate and collaborate with our customers, communities, government and industry stakeholders for better awareness, protection and preparation for natural disasters. Steve will talk more about this, including a recent visit to central Queensland.

Deepening trust and strengthening transparency also remains a key focus. Our Customer Committee enables the Board to ensure we are delivering good customer outcomes, and acts as an early indicator of any systemic issues. The Committee spends time with frontline teams, from contact centres to sales and claims, to hear firsthand the concerns and feedback of our customers. This has been invaluable for your Board. We understand that the bar is constantly rising in meeting expectations from a range of stakeholders, and we are committed to ongoing improvements to get the balance right.

Board and people

Finally, I would like to turn to your Board. In January 2020, the Board appointed Elmer Funke Kupper as a Non- executive Director. As I said earlier, Elmer brings significant experience and he will address you shortly, when we reach the resolution on his election.

Just a few weeks ago, we said farewell to Audette Exel after eight years on the Board. Audette made an extraordinary contribution that reflected her global mindset, her deep experience in banking and reinsurance, and her passion for the purpose of our business. We are undertaking a search for a new Director to replace Audette, and with skills to complement our existing Board.

I would like to thank my fellow Directors for their counsel and support in a year where we have had to manage many firsts, from both a national and global perspective.

I would also like to thank Steve Johnston. Despite the challenges of his first year as CEO, Steve is driving significant transformation across the Group. I would also like to thank all of Suncorp's people, and of course our shareholders, for their ongoing commitment and support through a particularly challenging and difficult period. I can assure you that we do not take your support for granted.

I will now ask Steve to address the meeting.

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