Full Year 2014 Results 27 August 2014

Presenters

Robert Kelly – Managing Director & CEO Stephen Humphrys – Chief Financial Officer

Important notice

This presentation contains general information in summary form which is current as at 27 August 2014. It presents financial information on both a statutory basis (prepared in accordance with Australian accounting standards which comply with International Financial Reporting Standards (IFRS)) and non-IFRS basis. This presentation is not a recommendation or advice in relation to Steadfast Group Limited ("Steadfast") or any product or service offered by Steadfast's subsidiaries. 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. It should be read in conjunction with Steadfast's other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, ASX Limited, and in particular the 2014 Annual Report. These are also available at www.steadfast.com.au.

No representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation. To the maximum extent permitted by law, Steadfast, its subsidiaries and their respective directors, officers, employees and agents disclaim all liability and responsibility for any direct or indirect loss or damage 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 is for general information only. 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 gives no undertaking to update this information over time (subject to legal or regulatory requirements). Any forward-looking statements, including projections, 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 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.

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. For example, "FY14" refers to the year ended 30 June 2014. All references starting with "1H FY" refer to the financial half year ended 31 December. For example, "1H FY14" refers to the half year ended 31 December 2013.

FY14 highlights

FY end –30 June	Pro-formaFY14	Pro-formaFY13	%growth
Revenue from consolidatedentities ($m)	173.4	155.9	11.2
EBITA pre Corporate Officeexpenses ($m)	70.4	61.1	15.3
NPATA ($m)	41.2	35.2	17.3
Cash EPS (cents)	8.23	7.02	17.3

Pro-forma NPATA 9% ahead of IPO Prospectus forecast of $37.8m
2H FY14 dividend of 2.7 cents per share (fully franked), bringing the total FY14 dividend to 4.5 cents per share
Four acquisitions completed pre 30 June, and a further three completed since then
Hubs finalised in each state of Australia to create scale and cost synergies
Project 360 in proof of concept stage

Exceeded IPO Prospectus forecasts and making headway with efficiency initiatives

Post IPO acquisitions

Seven acquired businesses expected to contribute around $450m in GWP and $12m in EBITA (100% basis)
Three underwriting agencies/Strategic Partners
- Protecsure – Dec 13
- Nautilus Marine – Apr 14
- MECON Winsure – May 14
Three insurance brokers including 2 Network Brokers
- IMC – Jun 14
- Steadfast Re – Jul 14
- Ausure Group – Aug 14
Second largest broker network in New Zealand
- Allied Insurance Group – Jul 14

Stayed disciplined with acquisition criteria and pricing multiples

Steadfast Underwriting Agencies

Our nine underwriting agencies currently generate **~ $200 million of GWP**.

Hard-to-place risks, exclusive to Steadfast Network Brokers

Strong focus on SME insurance programs

Building and construction industry

Hard to place and complex risks including environmental liability

Marine and motorcycle

Sports and leisure related businesses

Specialised equipment, Tradesmen & small business and marine transit

Hospitality, leisure and entertainment sector

Community care, entertainment & hospitality, and security

Professionals including engineers, architects and doctors

Note: 1. Based on Steadfast estimates including due diligence materials from Calliden, excludes transaction costs and projected synergies

6

Calliden acquisition proposal highlights

Creates one of the largest underwriting agency groups in Australia
Relationship with Munich Re, one of the world's leading reinsurance companies
"Normalised" EBITA of $8.5m pre transaction costs and pre synergies
10% EPS accretion expected in first full year1
$104m annual GWP, bringing total annual GWP from underwriting agencies to around $310m

Steadfast to become one of the largest underwriting agency groups in Australia

7

Calliden acquisition proposal mechanics

Total value of $105.4m to Calliden shareholders based on 46.5 cents per share (41.5 cents per share plus special fully franked dividend of 5.0 cents per share)
- Steadfast share approximately $55m
Immediate on-sale of insurance business and certain agencies to Munich Re including the NTA of Calliden
Conditional upon approvals from regulatory bodies, Calliden shareholders, the Court, as well as other conditions being satisfied

Scheme of arrangement announced 27 August, estimated completion December 2014.

Who we are

500

LARGEST GENERAL INSURANCE BROKER NETWORK IN AUSTRALIA1

• Service provider

to 306 broker businesses in Australia, New Zealand and Singapore and 9 underwriting agencies

• Consolidator

equity interests in 54 broker businesses, 9 underwriting agencies, a life broker, a reinsurance broker and two ancillary businesses

• 50% joint venture in Macquarie Pacific Funding

SME customer base

Steadfast GWP mix

Steadfast's customer base primarily consists of small to medium size enterprises (SMEs) where clients need advice to buy the appropriate insurance for commercial and personal use
Focus is on advice

Business model

Steadfast Group

Service provider to 306 broker businesses across Australia, New Zealand and Singapore
Receives Marketing & Administration (M&A) fees from Strategic Partners when brokers market their products
Consolidator with equity interests in 54 insurance broking businesses, nine underwriting agencies, a life broking business, a reinsurance broking business, a premium funder and ancillary service organisations

306 Steadfast Network Brokers

Source products from insurance companies and underwriting agencies on behalf of their clients
Select appropriate insurance in terms of coverage, flexibility and pricing
Assist customers in submitting and negotiating claims
Includes wholesale broking facilities

GWP growth

Network Brokers

4.7%

11.4% CAGR over the past 5 years

• Steadfast Network GWP no longer includes the fire service levy which generates no income for brokers (FY14: $92m, FY13 $180m, FY12: $205m)

Drivers of Network GWP growth

• Despite price declines in 2H FY14, healthy increase in GWP due to strong new broker growth and continued growth in volume

Note: 1. Based on the increase in average price per premium broked by the Steadfast Network (sample size of over 1.5 million Australian policies)

1.8% organic growth (price and volume) + 2.9% new broker growth 4.7% total

12

Drivers of gross M&A Fee growth

• 35% of M&A Fee rebated to Steadfast members

Note: 1. Prior to intercompany transactions

Resilience

Steadfast's rise in profitability is not dependant on premium rate rises

• Despite decline in premium rates, Steadfast showed growth in GWP, fees & commissions, M&A and NPATA

Financial information

Exceeded forecast profits Click to Edit Title

Pro-forma IFRS Summary

FY end –30 June	FY14ProspectusForecast	Pro-formaFY14	Pro-formaFY13	&FY14FY13growth%	FY14 exacquisitions& hubbing
EBITA pre CorporateOffice expenses($m)	67.9	70.4	61.1	153	68.2
NPAT ($m)	30.1	32.4	28.1	155	31.8
Reported EPS (cents)	6.01	6.47	5.60	155	6.34
NPATA ($m)	37.8	41.2	35.2	17.3	40.4
Cash EPS (cents)	7.54	8.23	7.02	17.3	8.07

Strong profit growth Click to Edit Title

Pro-forma Statement of Income (IFRS View)

$ millions	Pro-formaFY14	Pro-formaFY13	%growth
Fees and commissions1	118.3	104.2	13.5
M&A Fees	26.4	24.5	7.4
Interest income	2.7	2.9	-62
Other revenue2	26.0	24.2	7.4
Revenue –Consolidated entities	173.4	155.9	11.2
Consolidated entities1Expenses –	127.5	115.7	10.2
EBITA –Consolidated entities	45.8	40.2	14.1
Share of EBITA from associates andjoint ventures	24.6	20.9	17.8
EBITA –Pre Corporate Office expenses	70.4	61.1	15.3
CorporateOffice income	0.8	0.0	Nm
Corporate Office expenses	8.8	3.7	Nm
EBITA –PostCorporate Office expenses	62.3	57.4	8.6
Net profit after tax	35.2	30.6	15.2
Net profit attributable to Steadfast members	32.4	28.1	15.5
Net Profit after Tax and before Amortisation	41.2	35.2	17.3

1 Underwriting agency commission expense of $15.0m reflected in income and expenses in FY14. FY13 revenue and expenses have both been grossed up by $11.0m to reflect the FY13 underwriting agency commission expense.

Revenue up 11.2% based on organic growth of 2.7% and 8.5% growth from acquisitions and hubbing
M&A Fees up 9.8% (or 7.4% net of interco transactions) reflecting premium growth and new strategic partners and products
EBITA pre Corporate Office expenses up 15%
Rise in corporate office expenses due to new corporate structure and ASX listing

2 Breakdown on slide 38.

Contributions to EBITA growth

Breakdown of the change in EBITA pre Corporate Office expenses

Increasing profit margins Click to Edit Title

EBITA margins (Aggregated View)

FY end –30 June	Pro-formaFY12	Pro-formaFY13	Pro-formaFY14	FY14ProspectusForecast
Consolidated brokers	31.8%	30.8%	33.3%	32.6%
Equity accounted	26.3%	27.1%	29.7%	29.2%
Underwriting agencies1	24.7%	26.0%	33.9%	39.6%
Ancillary	15.5%	17.5%	16.0%	16.9%
Premium funding	28.6%	23.3%	18.9%	18.0%
Steadfast	6.2%	22.1%	16.3%	14.4%
TotalEBITA margin (preCorporate Office expenses)	25.9%	26.6%	27.3%	27.0%

Broker margins improved 2%+
Underwriting agency margins increase reflect cost synergies extracted in FY14. Excluding FY14 acquisitions, margins would have been 36.1%
MPF restructure costs lower than forecast

Balance sheet positioned for growth Click to Edit Title

$ millions	30/06/14	31/12/13
Cash and cash equivalents	38.6	52.2
Cash held on trust	76.7	56.5
Receivables & other	152.7	77.1
Totalcurrent assets	268.0	185.8
Equity accounted investments	148.8	153.4
Property, plant and equipment	19.8	18.8
Identifiable intangibles	79.4	72.3
Goodwill	287.2	252.7
Deferred tax assets & other	19.5	21.1
Total non-current assets	554.7	518.3
Total assets	822.7	704.1
Trade and other payables	211.9	123.9
Loan and borrowings	1.5	1.1
Other	25.0	21.0
Total current liabilities	238.4	146.0
Loans and borrowings	19.5	7.3
Deferred tax liabilities & other	39.8	34.4
Total non-current liabilities	59.3	41.7
Total liabilities	297.7	187.7
Net assets	525.0	516.4
Non-controlling interests	9.2	8.4

Cash held on trust belongs to insurers and brokers (balancing item in trade and other payables)
Board approved increase in gearing levels from conservative 15% to 20% which raises debt capacity to $130m
As at 26 August 2014, B/S capacity for acquisitions and earnout payments is $85m ($45m at the end of June)
$8.5m of debt belongs to broker businesses

Strong cash generation Click to Edit Title

$ millions	FY14	FY13
Cash flows from operating activities
Receipts from customers	138.4	37.0
Payments to suppliers and employees, and memberrebates	-124.1	-38.7
Dividends received from associates and joint venture	7.2	2.8
Interestreceived net of interest and other finance costspaid	2.7	-0.9
Income taxes paid	-7.8	-0.6
Net cash from operating activities beforecustomer trust accounts movement	16.4	-0.5
Net movement in customer trust accounts	-10.9	3.4
Net cash from operating activities	5.5	2.9
Net cash used in investingactivities	-181.7	-36.5
Net cash from financing activities	279.3	35.0
Net increase/(decrease) in cash and cashequivalents	103.1	1.5
Cash and cash equivalents at 1 July	11.5	10.0
Cash and cash equivalents at 30June	114.6	11.5

$76.7m cash on trust, remainder is "working capital" and cash accumulated for dividends
Cash held in trust balances high when Steadfast purchased equity stakes in brokers causing $11m outflow in FY14
Cash used in investing activities includes $185m (net of cash and trust cash acquired) paid for equity stakes in brokers and other businesses
Cash from financing activities includes $334m raised from IPO and repayment of debt
Dividends from equity accounted investments due by 26 August (at least 75% of profit after tax)

Fully franked final dividend of 2.7 cents

Fully franked final dividend of 2.7 cents per share
Interim and final dividend total 4.5 cents per share
69% dividend payout ratio target in line with policy, namely 65% to 85% of net profit after tax, and a minimum of 50% of net profit after tax before amortisation and impairment of intangibles
Dividend Reinvestment Plan (DRP): dividends eligible for reinvestment under the DRP; final 2014 DRP will be funded by issue of new SDF shares; 2.5% discount
Key dates for final FY14 dividend
- Ex date: 10 September 2014
- Record date: 12 September 2014
- Payment date: 8 October 2014

Strategy & outlook

24

Strategic initiatives

Continue to provide and enhance the Network services that our brokers rely upon
Maintain and expand our strategic partnerships
Finalise initial hubs in each state of Australia
Convert, where appropriate, the acquisitions and other opportunities under consideration
Develop and acquire underwriting agencies in niche and complementary areas
Implement Project 360˚
Demonstrate synergies by scale and cost synergies
Evaluate, develop, implement and roll out Steadfast Direct for the retail sector of our client base

√

Project 360˚ proof of concept

Brokers

1. Client contact
1. Risk review
1. Placement of product
1. Creates invoice and sends to client

Project 360˚

1. Collects premium from client
1. Settles brokers' debtors
1. Invests funds
1. Distributes commissions & fees and investment income to brokers
1. Pays brokers' creditors (i.e. insurance companies)

Hubbing

Estimated synergies to emerge over the next 2 years starting in FY15

Impact for hubbed brokers:

• 7% uplift in profits, i.e. 2%+ uplift in EBITA margin

Acquisition pipeline

Pipeline of potential acquisitions including several of those in active dialogue
Strict criteria being followed. Acquisitions must be EPS accretive to shareholders within the first 12 months
Current balance sheet capacity of ~$85 million
Brokers and underwriting agencies are our prime targets

Natural acquirer of further interests in Steadfast Network Brokers, Allied and a potential acquirer of non-aligned brokers and underwriting agencies

Escrow shares

172.5m shares (owned by Steadfast brokers and associates) issued under the IPO Prospectus in escrow until 31 August 2014
Share sale facility in place with Macquarie Bank and JP Morgan for any escrow shareholder wishing to sell SDF shares (no broker fees)
Applications for the share sale facility close on Friday 29 August at 5pm
Shares will be sold on market or if take-up is over $20 million by book build to be conducted on Monday 1 September
Based on broker shareholder feedback received to date, not anticipating high volume of escrow shares being sold

Summary & outlook

Underlying earnings exceeded FY14 Prospectus forecasts and post IPO acquisitions further strengthened our results
Strategic initiatives being delivered with success
Ongoing acquisition pipeline
Premium rates to continue to be under pressure
FY15 cash EPS forecast expected to increase by 10% to 13% (pre Calliden acquisition)
- low organic growth and increased Corporate Office expenses
- growth from acquisitions made to date
Calliden further 10% cash EPS accretion expected in first full year

Appendices

Diversification of Network Broker GWP

Diversified by geography1, 2

Diversified by product line1

Notes: 1: Based on FY14 Steadfast Network Broker GWP of $4.1 billion. 2: Geography is based on head office location of each Steadfast Network Broker; a small number of Steadfast Network Brokers had overseas operations in FY14.

Statutory P&L Click to Edit Title

Reflects 11 months of operations from IPO acquisitions and non-recurring items

$ millions	FY14	FY13
Revenue
M&A fees	26.4	24.5
Revenuefrom wholly owned entities	144.8	10.3
Shareof profits of associates and joint venture	13.3	2.9
Otherrevenue	0.5	0.1
Total revenue	185.0	37.8
EBITA from core operations (post CO)	55.2	12.3
Net profiton change in value of investments	4.0	0
Due diligence and restructure costs	-3.3	-23.8
Share based payment expense on share optionsand executive loans and shares	-5.3	0
StatutoryEBITA	50.6	-11.5
Amortisation	-10.2	-0.8
Finance costs	-1.1	-1.2
Income tax expense	-11.9	0.1
Net profit after tax	27.4	-13.3
Non-controlling interests	2.3	0.2
Net profit after tax	25.1	-13.4
Other comprehensive income after tax	0.6	0.2
Total comprehensive income after tax	25.7	-13.3

M&A Fees adjusted for intercompany transactions
Increase in EBITA from core operations derived from IPO Acquisitions and higher M&A Fees
Non-recurring, mainly non-cash items totalled ($4.6m) in FY14 compared to ($23.8m) in FY13

Click to Edit Title Reconciliation between Pro-forma and Statutory profit (pre CO) for FY14

Click to Edit Title Pro-forma statement of income (IFRS view)

$ millions	FY14ProspectusForecast	ProformaFY14	ProformaFY13	FY14&FY13%growth	FY14 exacquisitions& hubbing
Fees and commissions¹	98.5	118.3	104.2	13.5	105.9
M&A Fees	26.0	26.4	24.5	7.4	26.4
Interest income	3.2	2.7	2.9	-62	2.5
Other revenue2	24.3	26.0	24.2	7.4	25.4
Revenue –Consolidated entities	152.0	173.4	155.9	11.2	160.2
Employment expenses	59.5	64.3	57.5	11.9	59.9
Occupancy expenses	6.3	5.7	6.2	-7.1	5.3
Other expenses2	41.7	57.5	52.0	10.4	51.8
Expenses –Consolidated entities	107.5	127.5	115.7	10.2	117.1
EBITA –Consolidated entities	44.5	45.8	40.2	14.1	43.1
Share of EBITA from associates and joint ventures	23.4	24.6	20.9	17.8	25.1
EBITA –Pre Corporate Office expenses	67.9	70.4	61.1	15.3	68.2
CorporateOffice income	0.0	0.8	0.0	Nm	0.8
Corporate Office expenses	7.3	8.8	3.7	Nm	8.8
EBITA –PostCorporate Office expenses	60.6	62.3	57.4	8.6	60.1
Net financingexpense	0.5	1.2	2.0	-368	1.1
Amortisationexpense	9.5	9.9	8.6	14.6	9.5
Income tax expense	17.1	16.0	16.2	-1.5	15.5
Net profit after tax	33.5	35.2	30.6	15.2	34.0
Non-controlling interests	3.4	2.8	2.5	122	2.2
Net profit attributable to Steadfast members	30.1	32.4	28.1	15.5	31.8
Amortisation expense	7.7	8.8	7.1	24.7	8.6
Net Profit after Tax and before Amortisation	37.8	41.2	35.2	17.3	40.4

1 Underwriting agency commission expense of $15.0m reflected in income and expenses in FY14.

FY13 revenue and expenses have both been grossed up by $11.0m to reflect the FY13 underwriting agency commission expense.