RESIMAC GROUP LTD — AGM Information 2012

Nov 21, 2012

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22 November 2012

Homeloans AGM 2012 Address by Executive Chairman Tim Holmes

Ladies and gentleman, welcome to the Homeloans AGM for the financial year 2012 - our 12th AGM as a listed entity in this our 27[th] year of operation.

Homeloans has remained a viable and real alternative to the major lenders, and as the largest remaining listed non-bank lender in Australia we continue to deliver solid financial results. The results for the 2012 year are testament to our consistent and stable earnings performance.

For the year ended 30 June 2012, Homeloans recorded a statutory net profit after tax of $8.1m, down from the previous financial year result of $9.2m. This decrease was partly attributable to the prior year statutory result including a tax benefit arising from tax consolidation legislation changes.

Normalised net profit after tax after adjusting for one off costs of acquisition of the business of Refund Home Loans Pty Limited and non cash adjustments was $8.0m, which was in line with the normalised net profit after tax for 30 June 2011 of $8.1m.

In an operating environment of historically low levels of housing credit growth, lending volumes were slightly down by 4 per cent, although loan balances under administration by the Group (excluding the securitised loan portfolio and the Refund loan portfolio) increased 5.8 per cent on the previous financial year and ahead of system growth.

As a result of this solid performance, the Board declared a fully franked final dividend of 3.5 cents per share, in line with the 2011 final dividend and bringing the total dividend for the year to 6 cents per share, fully franked, also in line with the previous year. The Board recognises the importance to shareholders of maintaining a strong dividend and the Group is well positioned to continue this in 2013.

A key focus in 2012 was improving operating efficiencies in order to offset lending volume and margin pressures in the market. As a result of the improvements in this area, underlying operating expenses reduced by 15 per cent or around $3 million compared with the previous financial year. This was achieved without compromising on service excellence, highlighted by Homeloans being named Mortgage Manager of the Year at the 2012 Mortgage and Finance Association Excellence Awards. Homeloans was also the winner of this award in 2009 and 2010. Winning this award is testament to our approach and our commitment to differentiating Homeloans from other lenders, and marketing this effectively.

A highlight of the second half of 2012 was the acquisition in June 2012 of Refund Home Loans. The acquisition saw Homeloans attain the rights to Refund’s $1.9 billion loan book and exclusive rights to the intellectual property and records of the Refund business. Following the acquisition, the Group’s funds under administration rose to $7.8 billion.

In addition, 54 former Refund brokers entered into agreements to become Homeloans-branded brokers. This substantially enhances our branded retail network around Australia, particularly bolstering our

Telephone 13 38 39 Facsimile 1300 78 78 73

Address PO Box 7216, Cloisters Square, WA 6850 Website www.homeloans.com.au

Homeloans Limited ABN 55 095 034 003. Australian Credit Licence Number 247829.

presence on the eastern seaboard. The acquisition has cemented Homeloans’ position as a company that is keen to build a presence throughout the industry and shows that we have the confidence to remain a key player and a real alternative to the big four banks.

Whilst we expect the next financial year will see continued strong competition from the major retail banks, the fact that we have boosted our branded retail network substantially around Australia - particularly in Eastern states - gives us a strong platform to significantly expand Homeloans’ branded distribution.

During the year, we have dedicated our efforts on improving our online capabilities and promotional activity targeting the ever-growing segment of consumers who research and acquire financial services products online. We also developed and launched a mobile website to provide a more accessible and relevant experience for mobile web users, whilst continuing to update and improve our existing website.

In addition to these key online strategies, broker channel marketing has been a key focus this year to further strengthen and nurture our relationships with high-potential brokers. With the acquisition of Refund Home Loans, the Group also reviewed its market positioning in this space given the introduction of a large number of brokers to the business. This has seen Homeloans redefine its brand positioning from being exclusively a lender to, more broadly, a home loans solutions provider, although our core focus remains on our own products.

As in 2011, Homeloans continued to benefit from a diversified funding base in 2012, which supported a 6.3 per cent growth in our branded loan book. This reflects ongoing focus on providing a competitive offering and on retention activities.

Homeloans remains well placed to capitalise on its diversified wholesale funding arrangements and mature, scalable processes to grow our managed loan portfolio and further strengthen our position as a genuine and preferred alternative to the major banks for mortgage finance. During the year, Homeloans maintained a strong relationship with our wholesale funding partners and further diversified our funding lines and products offered.

Homeloans has maintained good levels of residual cash reserves which continue to be supported by strong operating cashflows emanating from underlying earnings. We remain free of any recourse debt facilities, having repaid these in full in the 2010 financial year. The ongoing cash reserves will be more than sufficient to meet Homeloans’ funding requirements, including future business development and investment.

The Australian home lending environment over the past financial year has been defined by a number of challenges. As mentioned previously, housing credit growth has been at historically low levels and consumer confidence levels have remained low due to subdued local and international economic conditions.

As a result, the housing market has been impacted and this, in turn, has seen competition in the mortgage market become increasingly aggressive. At the forefront of the increased competition are the major banks, which have been keen to protect their majority share of total new mortgage lending flow.

The impact of the abolition of exit fees on mortgage lending products from 1 July 2011 continues to play out in the market; however, Homeloans has seen its average loan life increase in the period, with our product offerings remaining competitive and attractive to customers.

In the face of these challenges, Homeloans has continued to perform. We have also continued to identify opportunities to grow our business, evidenced by the Refund Home Loans acquisition. This is a key plank of our strategy moving forward and better positions Homeloans to withstand the tough climate which is likely to prevail into the year ahead.

Whilst we expect general market conditions to remain subdued into 2013, Homeloans has a number of strong platforms from which to grow our business and differentiate ourselves in the market and thus ensure we are able to make the most of opportunities, both within a flat market and also as market conditions improve. In addition, our national presence provides for diversification across the economic nuances of the various state economies that may be experienced.

We remain focused on expanding our business via acquisitions and organic growth, increasing lending volumes through strategic relationships with our wholesale funders and enhancing our product offering. The Group is actively looking for opportunities that would leverage our existing capabilities and which are both earnings accretive and complimentary to the existing business. We continue to be supported by strong operating cashflows and are well placed to meet ongoing funding requirements, including future business development and investment.

In keeping with the Company’s policy of planning for the growth of the business and to facilitate succession planning, I am pleased to be able to inform you that the directors have decided to appoint Scott McWilliam our present COO as the Chief Executive Officer of the company with effect from 1 January 2013. I will resume the role of non-executive chairman of the company.

Scott McWilliam joined Homeloans Limited on 28 July 2003 and since this date he has been a loyal employee of the company and an integral part of the company’s executive team. He was appointed COO on 10 July 2012. During this period he has proved to be a good leader and has impressed the directors with his abilities.

In his position as COO he has worked closely with me and I have mentored him into the role of CEO. I now feel that the Board can confidently appoint him to the position of CEO with effect from 1 January 2013.

Scott will you please stand and make yourself known to the shareholders.

In summary, we look forward to continuing our business strategies which support our proposition of being a home loan solutions provider representing a very real, respected and refreshing alternative to the major banks for home finance.

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

Thank you. I will now move to the formal meeting.