MYSTATE LIMITED — AGM Information 2011

Oct 24, 2011

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MyState Limited (ASX Code: MYS) Annual General Meeting 25 October 2011

GROWTH IS KEY 2010 - 2011 RESULTS

Disclaimer

This presentation contains certain forwardlooking statements with respect to the financial condition, results of operations, business plans and objectives of management. All such forwardlooking 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 forwardlooking 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

Key goals and achievements in 2010 / 2011 Current Group Structure 2009 MSF/TPT Merger Update 30 June 2011 ‘Snapshot’ MYS Group Results – Full Year Results to 30 June 2011 Performance Highlights The Future Strategic Priorities Merger with The Rock Building Society

Key goals and achievements in 2010 / 2011

Consolidating the benefits of the merger Group cultural values established Group enterprise agreement negotiated

Revenue synergies realised via cross-referral of products and services between both brands – e.g. a 26% rise in new and revised Wills for TPT Property rationalised

Key goals and achievements in 2010 / 2011

Refining and documenting the group strategies Group’s vision and growth strategy confirmed enabling deployment of new market offerings – Business Banking, Agribusiness, Wealth Management (platform) Brand strategy refined to support new market offerings IT strategic plan developed

Key goals and achievements in 2010 / 2011

Building internal capability Leadership programs implemented Group-wide training established Common reward and recognition program established Change and project management capability resourced M&A capability enhanced

Our Current Group Structure

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Non-Operating Holding Company Subsidiary

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Subsidiary

The 2009 MSF/TPT Merger Update

For All Shareholders:

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

- Achieved

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

• Achieved

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

• YEJ 09 PAT (MSF & TPT) $15.72 million YEJ 10 PAT MYS Consolidated $17.34 million

(1) $17.34 million

YEJ 11 PAT MYS Consolidated

$22.02 million

• (1) Includes 10 months only of TPTL PAT

MYS 30 June 2011 ‘Snapshot’

Market capitalisation (6 September 11)

NPAT Net Assets Funds Under Management[(1)] Loans Under Management[ (2)] Funds Under Advice or Administration[(1)] Deposits[(2) ]

$239M

$22.02M $204.6M

$0.93B $1.86B

$737M $1.58B

• (1) Relates to Tasmanian Perpetual Trustees Limited

• (2) Relates to MyState Financial Limited

MYS Group full year results to 30 June 2011

Group Revenue of $187.36M Group Profit After Tax (PAT) of $22.02M – up 27% on prior year Earnings Per Share (EPS) of 32.65 cents – up 19% on prior year Final Dividend declared of 15.0 cents per share payable 7 October 2011 (Previous “Final Dividend” of 12.5 cents per share paid on 30 September 2010) MSF Liquidity Ratio 16.0% MSF Capital Adequacy Ratio 15.0% (Tier 1) Return on Equity of 11% – up 23% on prior year

MYS Group full year results to 30 June 2011

MSF Net Interest Margin (NIM) of 3.23% up 0.07% on previous period

TPT Managed Investment Scheme (MIS) management fees have stabilised after the Global Financial Crisis (GFC)

TPT capital and income commissions are stable but with continuing lower value of estates and reduced value of dividend, interest and rental receipts

TPT Funds Under Management stable at $930m

TPT Funds Under Advice stable at $740m TPT new and revised Wills up 26% on prior year

Performance Highlights

MYS Cost-to-Income

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74.64%
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73.93%
68.40%
68.33%
63.33%
Dec-09 Jun-10 Dec-10 Jun-11
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Dec-09
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Note

• All figures include bad and doubtful debts

• YEJ 11 excludes year-end one off write-off’s

MYS Group Capital Adequacy

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16.75%
16.25%
15.75%
Group CapitalGROUP
Capital
15.25% AdequacyAdequacy
14.75%
MSF
Capital
Adequacy MSF Capital Adequacy
14.25%
13.75%
13.25% Board
Policy Board Policy
12.75%
Jun‐10 Jul‐10 Aug‐10 Sep‐10 Oct‐10 Nov‐10 Dec‐10 Jan‐11 Feb‐11 Mar‐11 Apr‐11 May‐11 Jun‐11
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MSF - Interest Bearing Liability Portfolio

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800
 761
690
700
624
592
600
500
419
400
293
300
241
197
200
100
0
At
Call
Savings
Accounts Retail
Term
Deposits Corporate
Term
Deposits SecuriBsaBon
ConDsEFotes
2010 2011
($ Millions)
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Liability Category

MSF - Household Deposits as at 30 June 2011

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Balance Growth
MSF
($M)
8.32%
7.93%
7.35%

761

690
2.94%

545
 
572
6
Mnth 12
Mnth Jun‐10 Jun‐11
MSF System /01in3s
5
Tr0ns089ons Term
Deposits
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System data source: APRA - Licensed bank deposit data; Six month growth is to June 11 annualised

MSF - Home Lending as at 30 June 2011

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Balance

Growth
11.31%
10.48%
6.22% 6.30%
6
Mnth 12
Mnth
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MSF System
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System data source : RBA, Lending and Credit aggregates, published on 29 July 2011. Six month growth is to Jun 11 annualised.

MSF - Leads customer satisfaction

95% satisfaction rating

TPT - Funds Under Management

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TPT - Wealth Management Funds Under Advice

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The Future

The Future

Market conditions remain challenging Subdued demand for credit – record consumer savings Competitive pressures – major banks and regionals

Maintain discipline in both asset and liability generation Price for risk in new SME business unit Profitability vs. market share Conservative risk appetite

The Future

Uncertain economic outlook

Tasmanian economy challenged but MSF and TPT results remain strong Growth expected in MSF and TPT Agribusiness lending Stable margins

Continuing investment in the business – people, property and systems

Merger with The Rock Building Society

The Rock Building Society

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Our Future Group Structure

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120,000 80,000 40,000 customers customers customers

Merger benefits for shareholders

Delivery of enhanced revenue opportunities through:

A larger more diversified distribution footprint

• Distribution of expanded and more competitive products and services

• Better asset and liability management delivering improved interest margins and/or consequent pricing advantages

Merger benefits for shareholders

Delivery of cost savings through:

• Treasury benefits, including savings from proposed ADI licence consolidation

Combining corporate functions and eliminating duplicated head office functions

Rationalised Board, ASX and share registry related functions

Rationalising and aligning information technology systems and transaction processing

• Scale efficiencies in areas such as insurances, payroll, compliance and risk management

Merger benefits for shareholders

The pooling of talent and capability across the Merged Entity:

Strong branding, marketing and retail skills of MyState can be deployed to leverage The Rock’s brand and distribution footprint

Experienced system implementation skills of The Rock could be leveraged to assist MyState with future core system upgrade and alignment

Merger benefits for shareholders

Mitigation of operational risks from a lack of geographic diversification currently impacting: Credit rating Product ratings Securitisation and commercial paper pricing

Stronger funding and capital position of the Merged Entity supporting future growth strategies Potential for improved stock liquidity achieved through the broader MyState Share register Potential for improved investor confidence and dividend stability

Key dates for implementation

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MYS - Twelve Month Relative Stock Performance to June 2011

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Questions?

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MyState Limited (ASX Code: MYS) Annual General Meeting 25 October 2011

GROWTH IS KEY 2010 - 2011 RESULTS