RESIMAC GROUP LTD — AGM Information 2009

Nov 25, 2009

CHAIRMAN’S ADDRESS TO SHAREHOLDERS ANNUAL GENERAL MEETING Thursday, 26 November 2009

Good morning Ladies and Gentlemen

And welcome to this, the ninth Annual General Meeting of Homeloans Ltd.

My name is Tim Holmes and I am your Executive Chairman.

Let me first introduce to you my fellow Directors:

Rob Salmon, Non Executive Director

Rob Scott, Non Executive Director

Brian Benari, Non Executive Director

Drew Hall, Non Executive Director

Also we have:

Jennifer Murray, our Company Secretary,

During the year ending 30[th] June, the operating environment continued to be challenging for the non-bank lending sector. Despite experiencing some resurgence in home loan activity during the second half, largely as a result of the boost to the First Home Owners’ Grant and lower interest rates from the economic stimulus, the continuation of tight credit markets and a tightening of lending criteria across the home loan market impacted on the sector.

It was pleasing that in this environment Homeloans recorded a full year net profit after tax and before non cash adjustments of $8.3m for the 12 months, up 78% on the comparable previous financial year result of $4.7m.

As a result of this performance your Board declared a fully franked final dividend of 5.5 cents per share bringing the total to 7.0 cents per share for the year fully franked. On the normalised profit result of $8.3m, this represents a payout ratio of 84%.

This was a particularly strong result achieved in a difficult year that saw lending volumes down, particularly in the first half as a result of the global financial crisis.

The sharp focus on improving operational efficiencies across the business, developing more effective distribution channels and maintaining margins contributed to our significantly improved bottom line.

During the year Homeloans focused on improving its product range and expanding its distribution capabilities. This, together with continued access to a diversified funding base, places Homeloans in a very sound position as economic conditions improve. The Group has further consolidated its capital position with significant surplus cash reserves and will continue to seek opportunities for strategic acquisitions to add value to the business in the future.

The major banks continued to exert dominance over the mortgage sector to the extent that their market share of residential mortgage balances increased to nearly 90%.

A key driver of this trend has been the failure of non-bank funding markets, in particular the securitisation of Residential Mortgage Backed Securities (RMBS), to re-open following the onset of the global financial crisis.

The premium on interest rates attracted to RMBS has impacted on the ability to compete with the balance sheet lending of the major banks. The situation has improved slightly in recent times but still has a long way to go before RMBS again became a viable funding alternative which allows participants outside of the big four.

The consolidation of the industry in general, will present opportunities for Homeloans in the future. The opportunity to build a strong independent brand based on a range of product and service differentiators is far greater than it has been in the past.

The acquisition by National Australia Bank of the mortgage business of our major shareholder Challenger Financial Services, which includes the 40% shareholding held by Challenger in Homeloans, is the subject of a separate resolution later in this meeting and I will discuss it at that point.

Homeloans has proactively repositioned our value proposition in third party distribution to compete as a viable alternative to the majors by way of superior service standards and consolidating our relationship with 3[rd] party introducers including our recent appointment on the Mortgage Choice Panel.

We are now seeing more introducers seeking to establish sound partnerships with lenders outside the majors, and particularly those with a strong financial position and demonstrated commitment to third party distribution.

Our retail distribution channel continues to be a key component of Homeloans distribution with strong representation in Western Australia and South Australia and expansion into New South Wales and Victoria through the acquisitions in recent years of Independent Mortgage Corporation (IMC) and Auspak.

We expect the growth of new business referral relationships and loan consultants to assist in driving stronger profitability in the year ahead.

Homeloans has recorded some significant achievements in re-engineering key products to ensure competitive pricing and significantly reduced Deferred Establishment Fee (DEF) structures, without adversely affecting profitability. These have ensured that our financial strength and capability remain a standout in the non bank and mortgage management segment.

During the year Homeloans made a number of important appointments. Will Keall was appointed National Marketing Manager with responsibility for marketing strategy, planning and implementation across corporate, retail and broker channels, as we seek to build our national brand presence.

As well Greg Mitchell was appointed General Manager Retail to focus and reposition ourselves back into the retail market, while Tony Carn was appointed General Manager Third Party Distribution with responsibility for our broker network.

To bring operations in line with product development and pricing, Scott McWilliam was appointed General Manager Operations.

Looking ahead in the current year, it appears that the worst of the global financial crisis now appears to be over and there is a gradual rebuilding of confidence. The combination of a real alternative to the majors and a sound diversified funding base gives us optimism about our capacity to take advantage of improved operating conditions.

In closing, I wish to thank my fellow Directors and the staff of Homeloans Limited for their ongoing support throughout the year.

Thank you.

I will now move to the formal meeting.