STEADFAST GROUP LIMITED — Interim / Quarterly Report 2020

Feb 24, 2020

Steadfast Group 1H20 Results – Investor Presentation

25 February 2020

Table of Contents

1H20 Results – Investor Presentation

1H20 Financial Summary 1H20 Highlights FY20 Guidance

Appendices

1H20 Highlights

Increase in underlying NPAT of 39%

Underlying earnings 1

• EBITA +27.5% to $108.9m
• NPAT +39.1% to $53.2m
• NPATA2 +32.5% to $66.7m
• Diluted EPS (NPAT)3 +29.7% to 6.26 cps
• Interim dividend +12.5% to 3.6 cps

Statutory earnings1

• NPAT loss of $71.9m as flagged at FY19 results
• Expensing of consideration for the acquisitions of IBNA ($72.7m post tax) and the PSF rebate ($60.2m post tax) (see slide 9 for additional detail)

Broker and underwriting agency growth4

• Equity brokers and network aggregate EBITA +27.4%
• Underwriting agencies aggregate EBITA +13.4%
• SCTP long term growth targets remain on track, with 470 active brokers now using the platform

Acquisition growth

• Completed significant acquisitions of IBNA and Steadfast PSF rebate
• Additional broker and agency acquisitions in ordinary course of business

	1H20 UnderlyingEBITA contribution	1H20 UnderlyingEBITA growth
IBNA	$4.3m	5.0%
Steadfast PSF Rebate	$5.7m	6.6%
Business acquisitions	$6.3m	7.2%
Total	$16.3m	18.8%

Future growth

• Corporate debt facility increased from $385m to $460m
• Unutilised debt facility of $186m available at 31 December 2019 (plus free cash flow)

1 For reconciliation of statutory to underlying earnings, refer to slides 9 and 37. 1H20 underlying earnings shown above includes mark-to-market adjustment for Johns Lyng investment. 2 Calculated on a consistent basis since IPO.

3 Includes shares issued in relation to IBNA acquisition and Steadfast PSF Rebate offer assumed commencement date 1 July 2019.

4 4 Before increased IT expenditure and amortisation of previously capitalised IT expenditure.

Steadfast Network and equity brokers

Growth from IBNA and continued moderate price increases from strategic partners

Financial highlights

• Steadfast Network GWP +32% to $3.9 billion driven by:
  • New IBNA members
  • Continued growth from Authorised Representatives networks
  • 6.5% organic growth for year (excludes statutory classes)
    • Price increases in business pack, ISR, professional risks
• Network GWP is 88% commercial lines, 12% retail

Gross written premium ($bn)

GWP of $3.9bn vs $2.9bn +6.5% organic growth +4.6% AR network +1.1% new brokers +19.6% IBNA 1H20 vs 1H19 +32% total growth

Operational highlights

• Growth in Steadfast Network brokers +75 to 473
  • 410 brokers in the Australian Network
  • 48 brokers in the New Zealand Network
  • 15 brokers in the Singapore Network
• Investment activity in Steadfast Network brokers in 1H20
  • 6 new equity holdings, 10 increased equity holdings, 4 hubbed
• 78 new IBNA brokerages with annual GWP of $1.25 billion
• Steadfast Client Trading Platform GWP $287 million, +51%

Equity broker and network highlights (aggregate)

• Underlying revenue of $265.4 million, +13.7%
  • Organic growth of +6.9% and acquisition growth of +6.7%
• Underlying EBITA of $86.8 million, +27.4%
  • Organic growth of +7.2% and acquisition growth of +20.2%

Steadfast Underwriting Agencies

Record GWP and underlying EBITA growth

Financial highlights

• Steadfast Underwriting Agencies GWP +21% to $673 million
  • Primarily driven by price and volume uplift, with some acquisition growth from full impact of HMIA
  • Property lines remain strong
• Opportunities for agencies as insurers are repositioning product lines and approach to distribution
• Underlying EBITA of $49.1 million, +13.4%

Gross written premium ($m)

Operational highlights

• 26 agencies offering over 100 niche products
• Strong performance also due to long-term strategy of closely aligning capacity providers and technology to products in order to benefit from higher premium pricing from strategic partners
• Increasing return on investment in 'greenfield' agencies as products gain traction in the market, for example Emergence (Cyber Security agency) – 41% GWP growth
• London 'super' binder pressure on remuneration offset by increase in volume
• Four of the London 'super' binder insurance classes are now live on the Steadfast Client Trading Platform

Our insurTech

Steadfast Client Trading Platform and INSIGHT

Steadfast Client Trading Platform (SCTP)

• 8 business lines and 13 insurer and underwriting agency partners live on SCTP
• SCTP delivers strong client outcomes, addressing several issues raised by the Hayne Royal Commission
  • Genuine contestable marketplace, generating improved pricing competition, coverage and marketing each time a policy is quoted or renewed
• 80% of Steadfast Network GWP could potentially be transacted on SCTP in Australia, of which 60% is our target to be transacted through SCTP in the next 4 years
• Addition of 78 IBNA brokerages and ~$1.25bn of GWP annually to Australian network expands the user base for SCTP
• SCTP usage up 51%, with over 470 brokers using the platform
• Latest developments:
  • Investing in the development of auto-rater for insurers for liability and PI
  • NZ roll-out continues

INSIGHT (broker management system)

• 128 brokers live on INSIGHT, with over 3,000 licenced users
• Additional 50 brokers committed to migrate onto INSIGHT, ongoing discussions with another 162 brokers

Period-on-period growth in GWP transacted through SCTP +51%

470+ Active brokers on SCTP

Steadfast Client Trading Platform (SCTP)

Gross Written Premium ($m)

7

1H20 Financial Summary

Impact of IBNA and Steadfast PSF Rebate offer on financial results

IBNA

• 100% acceptance rate for takeover of IBNA for consideration of $72.7m (post tax)
• Revenue commenced 1 July 2019
• Acquisition consideration expensed, statutory loss of $72.7m
• EPS calculation adjusted
  • normalise this non-recurring expense
  • adjust the share issue to apply from 1 July 2019
• Underlying EBITA contribution for FY20 now forecast to be $8.3m (previously $4.8m, assuming 80% take up and commencement mid way through 1H20)
• A small bias towards 1H20 earnings

Steadfast PSF Rebate offer

• c. 70% acceptance rate at a cost of $60.2m (post tax)
• Revenue commenced 1 July 2019
• Acquisition consideration expensed statutory loss of $60.2m
• EPS calculation adjusted
  • normalise this non-recurring expense
  • adjust the share issue to apply from 1 July 2019
• Underlying EBITA contribution for FY20 now forecast to be $10.7m (previously $4.8m was forecast for FY20)
• A small bias towards 1H20 earnings

6 monthsto 31 December$ million	Statutory vsunderlyingreconciliation 1H20	Statutory vsunderlyingreconciliation 1H19
Statutory profit/(loss)	(71.9)	40.5
Adjusted for:
Add back IBNA acquisition expense	72.7	-
Add back PSF Rebate expense	60.2	-
Less IQumulateaccounting standards impact	(2.0)	-
Less other non-trading items	(5.8)	(2.3)
Subtotal	125.1	(2.3)
Underlying NPAT ($m) including JLG mark-to-market adjustment	53.2	38.2
Add/(less) JLG mark-to-market revaluation	(2.6)	0.8
Underlying NPAT ($m) –excluding JLG mark-to-market adjustment	50.6	39.1

Reconciliation of statutory NPAT to underlying NPAT

Group financial performance

Strong underlying earnings growth

6 monthsto 31 Dec$ million	Underlying1H201	Underlying1H191	Period-onperiodgrowth %
Revenue ($m)	414.4	319.8	29.6%
EBITA ($m)	108.9	85.4	27.5%
NPAT ($m)	53.2	38.2	39.1%
Diluted EPS2 (NPAT) (cents)	6.26	4.83	29.7%
NPATA3 ($m)	66.7	50.3	32.5%
Diluted EPS2,3 (NPATA)(cents)	7.85	6.35	23.5%

Historically the results have included JLG mark-to-market adjustment. Going forward underlying financials will exclude mark-to-market impact of JLG investment. Therefore the underlying results have been provided both inclusive and exclusive of the mark-to-market adjustments for JLG investment.

Underlying earnings – including JLG mark-to-market Underlying earnings – excluding JLG mark-to-market

6 monthsto 31 Dec$ million	Underlying1H201	Underlying1H191	Period-onperiodgrowth %
Revenue ($m)	410.7	321.0	28.0%
EBITA ($m)	105.2	86.6	21.4%
NPAT ($m)	50.6	39.1	29.5%
Diluted EPS2 (NPAT)(cents)	5.96	4.93	20.7%
NPATA3 ($m)	64.0	51.1	25.2%
Diluted EPS2,3 (NPATA)(cents)	7.54	6.46	16.8%

Cash flow summary$ million	1H20
Operating cash flow	$109.2m
Less IQumulatecollections balance datemismatch4	($20.6)m
Less lease obligations now classified asfinancing	($5.8)m
Adjusted operating cashflow	$82.8m

Full conversion of NPATA into cash

1 Underlying financial data reconciled to statutory data on slides 9 and 37.

2 1H20 EPS share count of c.849.5m assumes 1 July 2019 commencement for IBNA and Steadfast PSF Rebate offer.

3 Calculated on a consistent basis since IPO.

4 Instalments collected late December 2019 and paid to financier early January 2020. 10

Organic and acquisition growth

Equity brokers and network - consolidated & equity accounted (assuming 100% ownership)

6 monthsto 31 December 2019$ million	Underlying1H201	Underlying1H191	Period-on-periodgrowth %	Organicgrowth %	Growth fromacquisitions %
Netrevenue	265.4	233.5	13.7%	6.9%	6.7%
EBITA	86.8	68.1	27.4%	7.2%	20.2%

• EBITA of $86.8m (+27.4%) from all equity brokers and network
  • Driven by acquisition (including IBNA and Steadfast PSF Rebate offer) and organic growth
  • Growth in revenue driven by hardening market and volume growth
  • Fee & commission split of ~30%/70% in-line with historic average

EBITA growth: 1H19 – 1H20

Steadfast Underwriting Agencies

Strong organic growth driven by price and volume

Steadfast Underwriting Agencies – consolidated & equity accounted (assuming 100% ownership)

6 monthsto 31 December 2019$ million	Underlying1H201	Underlying1H191	Period-on-periodgrowth %	Organicgrowth %	Growth fromacquisitions %
Netrevenue	104.6	92.5	13.1%	11.5%	1.6%
EBITA	49.1	43.3	13.4%	11.2%	2.2%

• Strong uplift across all agencies
• Strong performance led to underlying EBITA growth of 13.4%

EBITA growth: 1H19 – 1H20

1 Excludes profit share.

Drivers of 21.4% growth in underlying EBITA1

Organic and acquisition growth

13 1 Excludes impact from mark-to-market adjustments for Johns Lyng Group investment. The JLG dividend is included in Underlying earnings. 2 Acquisitions completed by existing equity businesses.

Strong balance sheet with capacity for future growth

$ million	31 Dec 2019	30 Jun 19
Cash and cash equivalents	197	117
Cash held on trust	477	427
Premium funding receivables	567	76
Trade & other receivables2	146	172
Total current assets	1,387	792
Goodwill	963	945
Identifiable intangibles	190	193
Equity accounted investments	118	128
Other (including PPE, deferred tax assets)	168	99
Total non-current assets	1,439	1,365
Total assets	2,826	2,157
Trade & other payables	554	510
Borrowings	21	26
Premium funding borrowings and payables	571	70
Deferred consideration	20	28
Other (including tax payable, provisions)	52	41
Total current liabilities	1,218	675
Borrowings	296	311
Deferred consideration	1	6
Deferred tax liabilities – customer relationships	45	49
Remaining deferred tax liability & other	52	21
Total non-current liabilities	394	387
Total liabilities	1,612	1,062
Net assets	1,214	1,095
Non-controlling interests	69	80

Corporate debt facilities$ million	Maturity	Total
Facility A - Revolving	Jan 2023	260
Facility B - Revolving	Jan 2025	75
Facility C – Term	Jan 2025	62.5
Facility D - Term	Jan 2027	62.5
	Total available	460

• IQumulate now fully reflected in balance sheet, refer slide 15 for further details
• Increased corporate debt facilities from $385m to $460m in January 2020
• Significant headroom in corporate debt covenants
• Unutilised corporate debt facility of $186m available at 31 December 2019 for future growth
• Total Group gearing excluding premium funding within Board approved maximum:

Gearing ratio1	ActualMax
Total Group	20.9%	30.0%

Total borrowings$ million	Total
Group facility borrowings	270
Subsidiary borrowings	47
Total	317

1 Gearing calculated as debt/(debt + equity). Debt defined as corporate debt+ subsidiary debt excluding premium funding debt.

Acquisition of IQumulate

Impact on balance sheet and statutory profit

$ million	Group31 Dec 19	IQumulate31 Dec 19Pro formaimpact	Group31 Dec 19Pro forma	Group30 Jun 19
Cash and cash equivalents	197	57	140	117
Cash held on trust	477	-	477	427
Premium funding receivables	567	548	19	76
Trade & other receivables	146	5	141	172
Total current assets	1,387	610	777	792
Goodwill	963	24	939	945
Identifiable intangibles	190	10	180	193
Equity accounted investments	118	-	118	128
Other (including PPE, deferred tax assets)	168	4	164	99
Total non-current assets	1,439	38	1,401	1,365
Total assets	2,826	648	2,178	2,157
Trade & other payables	554	22	532	510
Borrowings	21	-	21	26
Premium funding borrowings and payables	571	560	11	70
Deferred consideration	20	-	20	28
Other (including tax payable, provisions)	52	2	50	41
Total current liabilities	1,218	584	634	675
Borrowings	296	-	296	311
Deferred consideration	1	-	1	6
Deferred tax liabilities – customer relationships	45	3	42	49
Remaining deferred tax liability & other	52	2	50	21
Total non-current liabilities	394	5	389	387
Total liabilities	1,612	589	1,023	1,062
Net assets	1,214	59	1,155	1,095
Non-controlling interests	69	0	69	80

Steadfast Group acquired the remaining 50% of Macquarie Premium Funding (renamed IQumulate) late in FY19 to now hold 100%

Impact on balance sheet

• Premium funding borrowings and payables and corresponding receivables now fully disclosed on the Group balance sheet
  • IQumulate borrowings secured by IQumulate assets, no recourse to Steadfast Group
• Credit risk is mitigated by:
  • Cancellation of policy with funds returning to IQumulate
  • Risk of default carried by trade credit insurers
• Corporate debt financiers carve out IQumulate from corporate financial covenants

FY20 Guidance

Interim FY20 dividend

Interim dividend up 12.5%

• Interim FY20 dividend of 3.6 cps (fully franked), up from 3.2 cps in 1H19, +12.5%
  • FY20 target dividend payout ratio of 65% to 85% of underlying NPAT
• Dividend Reinvestment Plan (DRP) to apply to interim FY20 dividend; no discount
  • DRP shares will be acquired on market
• Key dates for interim FY20 dividend:
  • Ex dividend date: 2 March 2020
  • Dividend record date: 3 March 2020
  • DRP record date: 4 March 2020
  • Payment date: 26 March 2020

1 Excluding JLG mark-to-market adjustment.

2 1H20 EPS share count of c.849.5m shares commencing 1 July 2019 for IBNA and Steadfast PSF Rebate offer.

FY20 guidance

Reconfirm top end of underlying EBITA and NPAT guidance

Underlying EPS growth uplifted to reflect current guidance and the lower than anticipated share count Guidance now excludes mark-to-market adjustments for Johns Lyng Group

Guidance (excluding JLG mark-to-market)

Underlying EBITA	$215 million -$225 million
Underlying NPAT	$100 million -$110 million
Underlying diluted EPS (NPAT)1 growth	10% -15%

Reconfirm top end of FY20 EBITA and NPAT guidance even with the removal of mark-to-market adjustments for Johns Lyng Group investment.

YTD EBITA gain $6.0m; NPAT gain $4.2m as at 25 February 2020

Outlook and assumptions

• Strategic partners continuing to drive moderate premium price increases; and
• Increased technology spend to cater for expanded network.
• Also refer to the key risks on 48 52 of the Steadfast Group 2019 Annual Report.

Appendices

Steadfast Group (slide 20)

Steadfast Network (slide 24)

Steadfast Underwriting Agencies (slide 30)

Key initiatives (slide 32)

• Our insurTech (slide 33)
• International Expansion (slide 34)

1H20 detailed financials (slide 36)

Our track record since listing on the ASX

Steadfast Network GWP ($bn)

Underlying EPS (NPAT) (cents per share) 1

Steadfast Network brokers Brokers on INSIGHT Steadfast Client Trading Platform GWP ($m)

Underlying EBITA ($m) 1

Three business units focused on intermediated general insurance market

Steadfast Group (listed on ASX)
Steadfast Network	Steadfast Underwriting Agencies	Complementary Businesses
473general insurance brokers	26underwriting agencies	8businesses supporting the Steadfast Networkand Steadfast Underwriting Agencies includingSteadfast Technologies (100% owned)
Steadfast Group has equity holdings in 62brokers (all of which are members of theSteadfast Network)	Steadfast Group has equity holdings in all26underwriting agencies	Mixture of wholly owned, part-owned and jointventure businesses

Size and scale

	Largest general insurance broker network in Australasia		Largest group of underwriting agencies in Australasia
Annual GWP1	473	Annual GWP1	26
$7.1billion	Steadfast Network brokers	$1.3billion	Underwriting agencies
Steadfast Network collects professional services and other fees
Complementary businesses
100% owned Premium Funder	Specialist life insurance broker,50% owned	Back-office service provider,100% owned	Technology service arm,100% owned
Work health consultancy,57% owned	Reinsurance broker,50% owned	Legal practice,25% owned	Risk consulting,50% owned

1 As at calendar year 2019

Largest general insurance broker Network in Australasia

Steadfast Network

The Steadfast Network has 473 general insurance brokers in Australia, New Zealand and Singapore who receive superior market access, exclusive products and services backed by the size and scale of the Steadfast Group. Brokers in the Network have access to over 160 products and services which support their business and allow them to focus on their clients' insurance and risk management needs. Key benefits of being a Steadfast Network broker include improved policy wordings, broker services, exclusive access to Steadfast's technology and triage support for challenging claims.

Insurer partners have access to over $7.1 billion of gross written premium from the small-to-medium enterprise market through the Steadfast Network.

Steadfast Group also holds a 40% stake in unisonSteadfast which is separate from the Steadfast Network. unisonSteadfast broker numbers are disclosed separately to the Steadfast Network (see slide 35 for more detail).

Exclusive to Steadfast Network brokers

Scale and strength Size gives us strong relationships with insurer partners.

Products and services Access to over 160 services supporting their business & clients.

Technology Specialised technology services.

Helplines

Legal, contractual liability, compliance, human resources & technical.

Steadfast triage Provides expert support across claims, ethics & placement.

Training and networking events

Market-leading professional development through face-to-face & webinars.

Erato PI program Professional indemnity cover for Steadfast Network brokers.

Marketing Sales and marketing support.

Policy wordings

Market-leading wordings utilising broker & triage input.

Market access

Access to the leading insurance providers from Australia & around the world.

Strategy

• Operate a network that is stronger together and the network of choice for brokers
• Build and develop strong relationships with insurers and other strategic partners
• Grow international presence
• Be the best solution for our clients' needs
• Develop leading technology solutions to enable brokers to obtain competitive pricing and terms to retain and attract clients

Steadfast Network

$7.1bn gross written premium in CY19

473 brokers in the Network

Major insurer partners

245 brokers have joined the Steadfast Network since IPO

Number of Steadfast Network brokers

• 245 brokers have joined and only seven brokerages have left the Network since the IPO
• Over 160 products and services available to the Network
• Steadfast Client Trading Platform and INSIGHT initiatives generating heightened interest in Network value proposition worldwide

Worldwide broker offices (excluding unisonSteadfast)

Australia – resilient SME client base

• 88% commercial lines, 12% retail
• 84% of client base relates to small-tomedium size enterprises (SMEs) with less pricing volatility
• Focus is on advice
• Low exposure to Corporate (4%) which is exposed to more significant pricing pressure

• Business pack 20%
• Commerical motor 14%
• Retail 12%
• Commercial property & ISR 10%
• Liability 9%
• Professional risks 8%
• Statutory covers 7% Strata 7%
• Rural & Farm 4%
• Construction & engineering 4%

Other 5%

WA 13% NZ 6% SA 5% TAS 3% ACT 1% NT 1%

• CGU 16% QBE 15% Allianz 11% Vero 9% AIG 5% Chubb 4%
  • Zurich 4%
  • Various underwriting agencies, small insurers, Lloyd's and other small brokers 36%

1 Based on 1H20 GWP. 2 Allocation based on policy size (retail and small enterprise<$50k, medium enterprise $50 – $250k and corporate 250k+).

Increasing Steadfast Group's share of growing Network GWP

• The Steadfast Network is a key driver of Steadfast Group
  • Steadfast Group earns professional service fees (PSF) from insurer partners which are used as a revenue stream to provide products and services to the Steadfast Network
  • Steadfast Group has equity holdings in 62 (after hubbing) of the 473 brokerages in the Steadfast Network and receives an ongoing share of dividends from these brokerages
  • IBNA GWP commenced 1 July 2019 and is expected to contribute $1.25 billion in FY20

• Growth of the Steadfast Network benefits Steadfast Group
  • Professional Services Fees grow as the Steadfast Network grows
  • Steadfast Group continues to be a natural acquirer of Steadfast Network brokerages

Steadfast Underwriting Agencies

Steadfast Underwriting Agencies

26 agencies, over 100 niche products

Mobile plant and equipment

Key Initiatives

Our Insurtech (slide 33)

International footprint (slide 34)

Insurer and underwriting agency partners on the SCTP

International footprint

Steadfast Network model replication

1. New Zealand

• 48 brokers in the Network
• NZ$482m of gross written premium in CY19
• Steadfast Underwriting Agencies building market presence utilising Network distribution
• Strong buy-in from insurer partners
• SCTP introduced

2. Asia

• Target Singapore initially
• 15 brokers in the Singapore network
• Local CEO in place
• Two equity investments in Network brokers by Steadfast Group
• Five insurer partners have agreed to:
  • Pay Professional Services fees
  • Issue improved policy wordings

3. London

• Office expanded to meet demand for Lloyd's products
  • Risks suited to Lloyd's market
  • London super binder
• Granted licence to operate as a broker in the UK and a Lloyd's broker internationally
  • Improve Lloyd's access for all agencies and brokers, particularly the unisonSteadfast network

International footprint

unisonSteadfast

• Steadfast Group holds a 40% equity stake in unisonSteadfast
  • One of the world's largest global general insurance broker networks, offering multi-jurisdictional coverage
  • Supervisory board contains two Steadfast Group representatives
  • Medium to long-term strategy

600+

Referrals between the Steadfast Network and unisonSteadfast

Recent developments unisonSteadfast global network

• GWP aggregation
  • Discussions have taken place with global insurers on aggregation of global GWP
  • Leveraging Steadfast Group's relationships with global insurers
• Access to London market for unisonSteadfast brokers
  • Creation of first revenue stream for Steadfast Group
  • Leveraging London 'super' binder to improve access to key markets
• Seeking to increase professional indemnity cover for unisonSteadfast brokers
  • Creation of first new product for unisonSteadfast brokers
  • Leveraging Steadfast's relationship with PI provider

Reconciliation of statutory to underlying earnings

6 months ended 31 December 2019$'000	Total statutory	Reclassifications	Non-trading items	Total underlying
Fees and commissions income	235,093	81,626	-	316,719
Professional Services and other fees	50,442	(17,709)	-	32,733
Premium funding income	37,010	4,086	(1,989)	39,107
Interest income	4,144	-	-	4,144
Share of profits from associates and joint ventures	11,779	(310)	(6,121)	5,348
Mark-to-market of investment in Johns Lyng Group	3,725	-	(3,725)	-
Other revenue	8,705	17,112	(7,805)	18,012
Revenue	350,898	84,805	(19,640)	416,063
Less: share of profits from associates and joint ventures	(11,779)	6,431	-	(5,348)
Revenue – consolidated entities	339,119	91,236	(19,640)	410,715
Employment expenses	(140,932)	9,833	-	(131,099)
Occupancy expenses	(3,928)	(7,057)	-	(10,985)
Other expenses including Corporate Office	(225,804)	(92,897)	145,504	(173,197)
Expenses – Consolidated entities	(370,664)	(90,121)	145,504	(315,281)
EBITA – Consolidated entities	(31,545)	1,115	125,864	95,434
Share of EBITA from associates and joint ventures	16,900	(7,183)	-	9,717
Total EBITA	(14,645)	(6,068)	125,864	105,151
Finance costs – consolidated entities	(7,478)	1,162	-	(6,316)
Finance costs – associates and joint ventures	(230)	17	-	(213)
Amortisation expense – consolidated entities	(18,028)	3,844	-	(14,184)
Amortisation expense – associates and joint ventures	(1,297)	92	-	(1,205)
Income tax benefit/(expense) – consolidated entities	(14,399)	310	(8,472)	(22,561)
Income tax benefit/(expense) – associates and joint ventures	(3,594)	643	-	(2,951)
Net profit after tax	(59,671)	-	117,392	57,721
Non-controlling interests	(12,272)	-	5,152	(7,120)
Net profit after tax attributable to owners of Steadfast Group Limited (NPAT)	(71,943)	-	122,544	50,601

Statement of income (underlying IFRS view), exclusive of JLG mark-to-market

12 months ended 30 June$ million	Underlying1H20	Underlying1H19	Period-on-periodgrowth %	Organicgrowth %2	Acquisitions &hubbing growth %3
Fees and commissions¹	316.7	278.1	13.9%	8.7%	5.2%
Professional Services and other fees	32.7	24.8	32.1%	13.5%	18.6%
Interest income	4.1	4.1	1.5%	(10.2%)	11.7%
Other revenue4	57.1	14.0	308.6%	56.0%	252.6%
Revenue – Consolidated entities	410.7	321.0	28.0%	10.9%	17.1%
Employment expenses	(131.1)	(105.7)	24.1%	9.0%	15.1%
Occupancy expenses	(11.0)	(8.9)	23.7%	7.9%	15.8%
Other expenses including Corporate Office¹	(173.2)	(132.7)	30.5%	17.1%	13.4%
Expenses – Consolidated entities	(315.3)	(247.2)	27.5%	13.3%	14.2%
EBITA – Consolidated entities	95.4	73.7	29.4%	2.9%	26.5%
Share of EBITA from associates and joint ventures	9.7	12.9	(24.4%)	0.5%	(24.9%)
EBITA – excluding mark-to-market of investment in Johns Lyng Group	105.2	86.6	21.4%	2.6%	18.8%
Mark-to-market of investment in Johns Lyng Group	-	-	0.0%		1 Wholesale broker and agency commission expense (paid
Total EBITA	105.2	86.6	21.4%		to brokers) included in revenues and other expenses soimpact to EBITA is nil ($73.3m in 1H19; $85.7m in 1H20).
Net financing expense	(6.5)	(6.2)	5.3%	2 Includes bolt-on acquisitions.3 Acquisition growth includes the net effect of
Amortisation expense – consolidated entities	(14.2)	(12.4)	14.5%	Includes growth from associates converted to	acquisitions, divestments and increased equity stakes.
Amortisation expense – associates	(1.2)	(1.5)	(21.3%)	consolidated entities.	4 Excludes impact from mark-to-market adjustments of
Income tax expense	(25.5)	(19.8)	29.1%	for Johns Lyng Group investment.	$3.725m (pre tax) 1H20 and ($1.200)m (pre tax) 1H19
Net profit after tax	57.7	46.7	23.6%		5 For controlled entities, the amortisation of customer listadd back is before 30% tax but after non-controlling
Non-controlling interests	(7.1)	(7.6)	(6.7%)		interests, to reflect Steadfast Group's proportional share.The balance sheet includes a deferred tax liability toreflect the future non-tax deductibility of amortisation
Net profit attributable to Steadfast members (NPAT)	50.6	39.1	29.5%	expense.	6 For associates, amortisation of customer list is not tax
Amortisation expense – consolidated entities5	12.3	10.5	16.4%	effected (per Accounting Standards).7 Calculated on a consistent basis since IPO.
Amortisation expense – associates6	1.2	1.5	(22.1%)
Net Profit after Tax and before Amortisation (NPATA7)	64.0	51.1	25.2%

Statement of income (underlying IFRS view)

6 months ended 31 December 2019$ million	Underlying1H20	Underlying2H19	Underlying1H19	Underlying2H18	Underlying1H18
Fees and commissions¹	316.7	305.3	278.1	266.6	225.8
Professional Services and other fees	32.7	23.5	24.8	19.8	20.8
Interest income	4.1	4.8	4.1	3.4	3.6
Other revenue	57.1	33.7	14.0	15.4	11.5
Revenue – Consolidated entities	410.7	367.4	321.0	305.3	261.8
Employment expenses	(131.1)	(117.1)	(105.7)	(96.8)	(87.9)
Occupancy expenses	(11.0)	(10.0)	(8.9)	(8.7)	(7.7)
Other expenses including Corporate Office¹	(173.2)	(145.5)	(132.7)	(120.2)	(106.1)
Expenses – Consolidated entities	(315.3)	(272.7)	(247.2)	(225.7)	(201.8)
EBITA – Consolidated entities	95.4	94.7	73.7	79.6	60.0
Share of EBITA from associates and joint ventures	9.7	12.1	12.9	13.2	11.4
EBITA4	105.2	106.8	86.6	92.7	71.3
Net financing expense	(6.5)	(8.4)	(6.2)	(5.2)	(5.4)
Amortisation expense – consolidated entities	(14.2)	(13.3)	(12.4)	(11.7)	(10.3)
Amortisation expense – associates	(1.2)	(1.4)	(1.5)	(1.6)	(1.6)
Income tax expense	(25.5)	(24.0)	(19.8)	(23.6)	(16.8)
Net profit after tax	57.7	59.7	46.7	50.7	37.2
Non-controlling interests	(7.1)	(10.1)	(7.6)	(8.2)	(5.7)
Net profit attributable to Steadfast members (NPAT4)	50.6	49.6	39.1	42.5	31.5
Amortisation expense – consolidated entities2	12.3	11.5	10.5	10.2	8.9
Amortisation expense – associates2	1.2	1.4	1.5	1.6	1.6
Net Profit after Tax and before Amortisation (NPATA3,4)	64.0	62.5	51.1	54.3	42.0
Weighted average share #5	849.5	791.6	792.0	772.0	753.9
Underlying diluted EPS (NPAT) (cents per share)	5.96	6.27	4.93	5.40	4.17
Underlying diluted EPS (NPATA) (cents per share)	7.54	7.90	6.46	6.90	5.57

1 Wholesale broker and agency commission expense (paid to brokers) included in revenues and other expenses so impact to EBITA is nil ($73.3m in 1H19; $85.7m in 1H20).

2 For controlled entities, the amortisation of customer list add back is before 30% tax but after non-controlling interests, to reflect Steadfast Group's proportional share. The balance sheet includes a deferred tax liability to reflect the future non-tax

deductibility of amortisation expense. For associates, amortisation of customer list is not tax effected per Accounting Standards.

3 Calculated on a consistent basis since IPO.

4 Excludes impact of $3.725m (pre tax) from mark-to-market adjustments for Johns Lyng Group investment. Prior periods have also been adjusted.

5 Includes shares issued in relation to IBNA acquisition and Steadfast PSF Rebate offer assumed commencement date 1 July 2019.

Statutory cash flow statement

$ million	1H20	1H19
Cash flows from operating activities
Net cash from operating activities before customertrust accounts movement	109.2	62.3
Net movement in customer trust accounts	43.8	13.2
Net cash from operating activities	153.0	75.5
Cash used in PSF Rebate offer	(38.2)	-
Cash used in other investing activities	(24.0)	(103.2)
Cash acquired in acquisitions	7.6	80.2
Net cash used in investing activities1	(54.6)	(23.0)

Net cash from financing activities	35.1	67.1
Other	72.1	104.4
Cash used for dividends	(37.0)	(37.3)

Net increase/(decrease) in cashand cash equivalents	133.5	119.6
Cash and cash equivalents at 31 December	673.8	507.6
split into: Cash held in trust	477.1	392.8
Cash on hand (net of overdraft)	196.7	114.8

$45.8m free cash flow in 1H20
Cash from operations	$109.2m
Less IQumulate collections balance date mismatch2	($20.6)m
Less lease obligations now classified as financing	($5.8)m
Adjusted operating cashflow	$82.8m
Dividends paid	($37.0)
Free cash flow	$45.8m

> 100% conversion of NPATA to cash

1 Investments in IBNA and Steadfast PSF Rebate offer satisfied by issue of SDF shares are excluded from cash flow statement.

2 Instalments collected late December 2019 and paid to financier early January 2020.

Premiums and claims by class of business

	Houseowners/householders		Domestic motor vehicle		CTP motor vehicle
Premiums and Claims by class of Business	Year EndSept 2018	Year EndSept 2019	Year EndSept 2018	Year EndSept 2019	Year EndSept 2018	Year EndSept 2019
Gross written premium ($m)	8,663	9,172	9,773	10,324	3,556	3,387
Number of risks ('000)	12,026	12,116	15,751	16,065	16,127	15,190
Average premium per risk ($)	720	+5.1%757	620	+3.7%643	221	+0.9%223
Outwards reinsurance expense ($m)	2,648	2,878	1,915	2,076	800	762
Gross earned premium ($m)	8,816	9,305	9,540	10,145	3,698	3,544
Cession ratio	30%	31%	20%	20%	22%	21%
Gross incurred claims (current and prior years)net of non-reinsurance recoveries revenue ($m)	4,532	6,435	8357	7,694	1,932	2,086
Gross earned premium ($m)	8,816	9,305	9,540	10,145	3,698	3,544
Gross loss ratio	51%	69%	73%	76%	52%	59%
Net incurred claims (current and prior years) ($m)	3,593	4,234	5,631	5,877	1,577	1,953
Net earned premium ($m)	6,168	6,427	7,625	8,070	2,899	2,782
Net loss ratio	58%	66%	74%	73%	54%	70%
Underwriting expenses ($m)	1,664	1,711	1,558	1,601	298	294
Net earned premium ($m)	6,168	6,427	7,625	8,070	2,899	2,782
U/W expense ratio	27%	27%	20%	20%	10%	11%
Net U/W combined ratio	85%	92%	94%	93%	65%	81%

Premiums and claims by class of business

	Commercial motor vehicle			Fire and ISRPublic and product liability			Professional indemnity
Premiums and Claims by class of Business	Year EndSept 2018	Year EndSept 2019	Year EndSept 2018	Year EndSept 2019	Year EndSept 2018	Year EndSept 2019	Year EndSept 2018	Year EndSept 2019
Gross written premium ($m)	2,563	2,755	4,318	4,878	2,391	2,545	1,947	2,269
Number of risks ('000)	1,687	1,673	1,561	1,660	9,599	9,599	646	731
Average premium per risk ($)	1,519	+8.4% 1,646	2,767	+6.2% 2,938	249	+6.4%265	3,015	+2.9% 3,102
Outwards reinsurance expense ($m)	416	494	1,930	2,163	607	645	554	648
Gross earned premium ($m)	2,453	2,702	4,371	4,864	2,322	2,453	1,785	2,007
Cession ratio	17%	18%	44%	44%	26%	26%	31%	32%
Gross incurred claims (current and prior years)net of non-reinsurance recoveries revenue ($m)	1,775	1,921	2,795	3,397	1,333	2,051	1,905	1,977
Gross earned premium ($m)	2,453	2,702	4,371	4,864	2,322	2,453	1,785	2,007
Gross loss ratio	72%	71%	64%	70%	57%	84%	107%	98%
Net incurred claims (current and prior years) ($m)	1,470	1,526	1,550	1,914	870	1,244	829	992
Net earned premium ($m)	2,037	2,208	2,441	2,701	1,715	1,808	1,231	1,359
Net loss ratio	72%	69%	63%	71%	51%	69%	67%	73%
Underwriting expenses ($m)	519	547	986	1,048	522	534	233	259
Net earned premium ($m)	2,037	2,208	2,441	2,701	1,715	1,808	1,231	1,359
U/W expense ratio	25%	25%	40%	39%	30%	30%	19%	19%
Net U/W combined ratio	98%	94%	104%	110%	81%	98%	86%	92%

Important notice

This presentation has been prepared by Steadfast Group Limited ("Steadfast").

This presentation contains information in summary form which is current as at 25 February 2020. This presentation is not a recommendation or advice in relation to Steadfast or any product or service offered by Steadfast or its subsidiaries and associates. It is not intended to be relied upon as advice to investors or potential investors, and does not contain all information relevant or necessary for an investment decision or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth). It should be read in conjunction with Steadfast's other continuous and periodic disclosure announcements filed with the Australian Securities Exchange, ASX Limited, and in particular the Steadfast Group 2019 Annual Report. These disclosures are also available on Steadfast Group's website at investor.steadfast.com.au.

To the maximum extent permitted by law, Steadfast, its subsidiaries and associates and their respective directors, employees and agents disclaim all liability for any direct or indirect loss which may be suffered by any recipient through use of or reliance on anything contained in or omitted from this presentation. No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of Steadfast, including the merits and risks involved. Investors should consult with their own professional advisors in connection with any acquisition of securities.

The information in this presentation remains subject to change without notice. Steadfast assumes no obligation to provide any recipient of this presentation with any access to any additional information or to notify any recipient or any other person of any other matter arising or coming to its notice after the date of this presentation.

To the extent that certain statements contained in this presentation may constitute "forward-looking statements" or statements about "future matters", the information reflects Steadfast's intent, belief or expectations at the date of this presentation. Steadfast may update this information over time. Any forward-looking statements, including projections or guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside Steadfast's control and may cause Steadfast's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Any forward-looking statements, opinions and estimates in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Neither Steadfast, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. In addition, please note that past performance is no guarantee or indication of future performance. Possible factors that could cause results or performance to differ materially from those expressed in forward-looking statements include the key risks on pages 48-52 of Steadfast Group's 2019 Annual Report.

Certain non-IFRS financial information has been included within this presentation to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. Steadfast uses these measures to assess the performance of the business and believes that the information is useful to investors. Non-IFRS information, including underlying income statement items, pro forma income statement items, underlying earnings before interest expense, tax and amortisation of acquired intangibles (EBITA), underlying NPAT, underlying net profit after tax but before (pre tax) amortisation (NPATA1), underlying EPS (NPAT) (NPAT per share) and underlying EPS (NPATA) (NPATA per share), have not been subject to review by the auditors. FY13 and FY14 results are pro forma and assume the Pre-IPO Acquisitions and the IPO Acquisitions were included for the full reporting period (all of the IPO Acquisitions completed on 7 August 2013). Prior period underlying EPS (NPAT) and underlying EPS (NPATA) have been adjusted to reflect the re-basing of EPS post the February/March 2015 1:3 rights issue. All references to Aggregate refer to the 100% aggregation of all investees' results regardless of Steadfast's ownership interest. Underlying EPS (NPAT) and underlying EPS (NPATA) for 1H20 have been calculated as if all shares issued in 1H20 pursuant to the IBNA acquisition and PSF Rebate acquisition were issued on 1 July 2019.

This presentation does not constitute an offer to issue or sell securities or other financial products in any jurisdiction. The distribution of this presentation outside Australia may be restricted by law. Any recipient of this presentation outside Australia must seek advice on and observe any such restrictions. This presentation may not be reproduced or published, in whole or in part, for any purpose without the prior written permission of Steadfast.

Local currencies have been used where possible. Prevailing current exchange rates have been used to convert local currency amounts into Australian dollars, where appropriate. All references starting with "FY" refer to the financial year ended 30 June. All references starting with "1H" refers to the financial half year ended 31 December. "2H" refers to the financial half year ended 30 June.