MYSTATE LIMITED — AGM Information 2010

Mar 22, 2010

MyState Limited (ASX Code: MYS) Annual General Meeting 23 March 2010

MyState Limited Annual General Meeting 23 March 2010

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‐ Proxies lodged Resolution 1(a) ’ ‐ Re elect Mr N L d Antoine

• For

9,083,297

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•
Against
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106,443

• Abstain 110,606

‐ Proxies lodged Resolution 1(b) ‐ Re elect Mr I G Mansbridge

• For

9,094,561

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•
Against
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90,155

• Abstain 108,671

‐ Proxies lodged Resolution 2 Long Term Incentive Plan

• For

8,075,784

• Against 893,899

• Abstain

335,250

‐ Proxies lodged Resolution 3 Appointment of Auditor

• For 9,127,804

• Against 32,334

• Abstain 134,850

MyState Limited (ASX Code: MYS) Annual General Meeting 23 March 2010

MyState Limited Annual General Meeting 23 March 2010

John Gilbert Managing Director

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Disclaimer

This presentation contains certain forward‐looking statements with respect to the financial condition, results of operations, business plans and objectives of management. All such forward‐looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors many of which are outside the control of MyState Limited (MYS), which may cause the results or actual performance to be materially different from the future results or performance expressed or implied by such forward‐looking statements. Such forward‐looking statements speak only as of the date of presentation.

No presentation or warranty is or will be made by any legal or natural persons in relation to the accuracy or completeness of all or part of this document, or any constituent or associated presentation, information or material (collectively, the Information), or the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in, or implied by, the Information or any part of it. The Information includes information derived from third party sources that has not been independently verified.

To the full extent permitted by law, MYS disclaims any obligation or undertaking to release any updates or revisions to the Information to reflect any change in expectations or assumptions.

Nothing contained in the Information constitutes investment, legal, tax or other advice. You should make your own

assessment and take independent professional advice in relation to the Information and any action on the basis of the Information

Programme

• Merger Update

• Business Update

• First Half Year Performance Highlights (1H10)

• Strategic Priorities

• Full Year Forecast

Merger Update

The Board believes that the recent merger of MSF and TPT has created a fully integrated financial services group with increased scale which allows us to:

• deliver a greater range of products and services to existing and new customers

‐ enhance our future growth opportunities in new markets both in Tasmania and in due course throughout Australia while still maintaining our competitiveness

• deliver shareholder value by combining the balance sheet strength of both companies to grow shareholder returns

• ensure our proud Tasmanian heritage is maintained

Our Group Structure

MyState Limited Non-Operating Holding Company

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100% owned
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Subsidiary

Subsidiary

The Merger Proposal: Revisited

• A Non‐operating holding company MyState Limited has been established

• MyState Financial and Tasmanian Perpetual Trustees are now subsidiaries

• For All Shareholders:

• Earnings per share (EPS) accretive in Year 1 and strongly EPS accretive thereafter.

• Continued and further EPS uplift as a result of expected cost and revenue synergies in years 2 and 3.

• Anticipated enhanced and fully franked dividend payments based on profits of the merged entities.

MyState Limited: Market Position

Market capitalisation (2)

$ 229M

NPAT(1) (1H10)

$8.2M

Net Assets (1)

$196.3M

Funds Under Management (1)

Loans Under Management (2)

$1.0B $2.08B

Funds Under Advice or Administration (2)

$780M

Deposits (2)

$1.7B

(1) based on December 31, 2009 results (2) Management Accounts as at February 28, 2010

MyState Limited: Merger Outcomes

• Revenue synergies

‐ Increased product and service offering delivering opportunities to create revenue growth

• Cost synergies

‐ Operating cost synergies are now being realised

• A substantial number of redundancies have occurred, primarily with executive and senior management roles

• Brand

‐ Continued brand presence for both Tasmanian Perpetual Trustees and MyState Financial

MyState Limited: Merger Outcomes

Operating model

‐ MyState Limited registered office in Launceston

• Head offices maintained in existing Hobart and Launceston locations to support subsidiaries

‐ Service continuity in existing areas with some fine tuning being undertaken Customers

‐ More than 200,000 customers

Business Update

Mr John Gilbert was appointed Managing Director on 10 December 2009

The Executive Team was announced on 11 January 2010, as follows:

• Mr David Benbow – General Manager Wealth Management & Trustee Services

• Mr Colin Kent – General Manager Brands, Communications, People & Development

• Mr Tim Rutherford – General Manager Technology & Operations

• Mr Darren Turner – General Manager Retail Banking & Distribution

• Mr Paul Viney ‐ Company Secretary & Chief Financial Officer

MYS Group Half Year Results (1H10)

• Comprised of 6 months trading for MyState Financial (MSF) and 4 months for Tasmanian Perpetual Trustees (TPT)

• Group Revenue of $71.72M

• Group Profit After Tax (PAT) of $8.19M (Includes some “one‐ off” costs and gains)

• Earnings Per Share (EPS) of 13.9 cents

• Interim Dividend declared at 10.0 cents per share (“Final Dividend” of 10.0 cents per share paid in November 2009)

MYS Group Half‐Year Results ‐ Revenues MSF Net Interest Margin (NIM) has stabilised after some volatility in 2009

TPT Managed Investment Scheme (MIS) management fees have stabilised after the Global Financial Crisis (GFC), but below 2008 levels

TPT capital and income commissions down 25% on 2009 levels due to effects of the GFC

TPT profit on sale of Bendigo & Adelaide Bank (BEN) shares post sale of Tasmanian Banking Services (TBS) of $677k ($5.30M in TPT stand alone pre‐merger)

MYS Group Half‐Year Results ‐ Expenses

• MSF salaries down on last year, despite “one‐offs” demonstrating good progress with cost savings

• MSF bad debts stable

• All other MSF costs stable

• TPT wages up due to “one‐off” redundancy costs

• All other TPT costs stable

MYS Group Significant Items (pre‐tax) for (1H10)

		Six months ended 31 December 2009 ($M)	1H10
		Profit on disposal of Tasmanian Banking Services Limited	0.7
		Share sale facility costs	(1.2)
		Redundancy costs	(1.2)
		Stamp duty costs on Connect/Island State merger	(0.3)
		Executive recruitment costs
			(0.2)

MSF $1.97 billion in Deposits & FUA

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MSF Deposits& FUA
2,500
�
$265 million FUA
2,000
through Financial
Planning Services. 1,500
FUA – funds under
1,000
advice
500
0
2009 1H10
Deposits FUA
)
illio n s
M
( $
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TPT $1.01 billion Funds Under Management

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TPT Funds Under Management
Fund levels being impacted
1,600
by GFC, unfavourable
1,379
interest rate environment, 1,400 1,305 1,307
1,247
1,211
intense competition for 1,170
1,200
retail funds and adverse 1,045 1,006 1,015
movements in market 1,000
linked funds.
800
600
1H10 is balance as at 31
400
December 2009.
200
0
2002 2003 2004 2005 2006 2007 2008 2009 1H10
($ M illio n s)
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TPT $0.53 billion Funds Under Advice

TPT Funds Under Advice

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700
$533 million FUA 600 547 567 576
533
through Financial 500 501
Planning Services.
400
300
FUA – funds under
advice
200
100
0
2006 2007 2008 2009 1H10
($ Millions)
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Returns to Shareholders

The Board of MyState Limited has established a policy of generally paying ordinary dividends each year within the range of 70% to 90% of net profit after tax. This reflects;

• confidence in the prospects of the business

• strong cash flow generation

• high level of franking credits available

• reward to shareholders in difficult economic times

Final 2009 10.0 cps fully franked dividend paid November 2009 Interim 10.0 cps fully franked dividend payable 31 March 2010

MyState Share Price Movements

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MyState Ltd vs S&P/ASX 200 since listing indexed to 100
120
MYS S&P/ASX 200
115
110
105
100
95
90
85
10/09/200924/09/20098/10/200922/10/20095/11/200919/11/20093/12/200917/12/200931/12/200914/01/201028/01/201011/02/201025/02/201011/03/2010
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Strategic Priorities

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Strategic Priorities

• Rolling 3 year Strategic Plan being developed by Board and Executive and will be reviewed each year.

• Yearly targets/milestones with quarterly progress reporting to the Board.

Full Year Forecast Y/E 30 June 2010 Second half performance includes continuation of the solid revenue position, maintenance of the improved net interest margin and further one‐off restructuring costs. Based on current projections for the full financial year, the Board expects net profit after tax (NPAT) to be between $14.7 million and $16.3 million. The full year result allows for aggregate one‐off restructuring costs of $3.5 million for the full year. This profit guidance is conditional upon the continuation of existing financial market conditions

Questions ?

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MyState Limited Annual General Meeting 23 March 2010