STEADFAST GROUP LIMITED — Investor Presentation 2017

Aug 22, 2017

PRESENTERS:

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

Important notice

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

This presentation contains information in summary form which is current as at 23 August 2017. 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 2017 Annual Report. These disclosures are also available on Steadfast'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 37-39 of Steadfast Group's 2017 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 P&L items, pro-forma P&L 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 (NPATA), 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.

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 2017.

Investor presentation

Contents

		Group overview	4
		Financial highlights	5
		Operational highlights	6
		Business unit operational highlights	7
		Steadfast Network	8
		Steadfast Underwriting Agencies	11
		Investment activity	14
		Key initiatives
		Technology	15
		International footprint	17
		Financial highlights	21
		Outlook and guidance	30
	Appendices		34

Group overview

• Financial highlights
• Operational highlights

Group financial highlights

Strong growth in FY17 while investing for future growth

Underlyingearnings	Strongearnings growth in line with guidance:
	UnderlyingEBITA+10.6% to $143.3m
	UnderlyingNPAT+9.8% to $66.4m
	UnderlyingEPS (NPAT)+9.6% to 8.87 cents per share (cps)
Statutory earnings	Statutory NPAT of $67m (compared to $73m in FY16) includes lower net non-trading gains of$0.4m in FY17 ($13.0m in FY16)1
Organic growth	Underlying EBITAorganic growth of $9.8m, +7.6%
	Driven by GWP price increases, increased sales and margin improvement
	Growth is after significant investment in technology initiatives
Acquisitiongrowth	Underlying EBITAacquisition growth (net of divestments) of $3.9m, +3.0%
	Driven by broker-related acquisitions and increases in equity stakes in existing businesses
Future growth	Unutilised debt facility of $111m at 30 June 2017 available for future growth
	Plus ongoing free cash generation
	Newtechnology initiatives to drive future earnings growth
Shareholder return	Finaldividend, +22% pcp from 3.6 cps to 4.4 cps -fully franked
	Total FY17dividend, +17% from 6.0 cps to 7.0 cps -fully franked
	shareholder return of 196% since IPO in 20132Total

Group operational highlights

Delivering on key objectives

Steadfast Network	Growthin FY17 grosswritten premium, +10% to $5.0bnGrowth in SteadfastNetwork brokers, +18to 361 including Singapore
Steadfast UnderwritingAgencies	Growthin FY17 grosswritten premium, +4% to $777mLaunched Blend, a new agency specialising in accident & health as a joint venture withFairfax Financial Holdings
Investment activity	$45m of investment in building equity stakes in brokers and underwriting agencies9 new equity holdings12 increased equity holdings7 equity brokers hubbedAcquired Beazley's accident & health renewal rights in AustraliaAcquired stake in unisonBrokers (renamed unisonSteadfast)Divested White Outsourcing while maintaining relevant key functionality in SteadfastBusiness Solutions which is focused on the centralisation of several back office functions
Key initiative -technology	Steadfast Client Trading Platform rolloutis underway with5 insurance lines contractedwith insurer partnersINSIGHT core technology completed, rollout is ongoing with 37brokers migrated ontothe platform, with significantongoing interest from brokersUnderwriterCentral in 8 underwritingagencies, with 3 conversions expected in FY18
Key initiative -international footprint	Acquired stake in unisonBrokers to create unisonSteadfast, a global general insurancenetwork with 200 brokers in 130 countries generating US$17bn in GWPLaunched Steadfast Singapore –9 Singapore brokers have joined the Network, with firstequity investment made in a broker in July 2017New Zealand GWP of NZ$330m, +7%, with 38 brokers now in Steadfast Network

Business unit operational highlights

• Steadfast Network
• Steadfast Underwriting Agencies
• Investment activity
• Key initiatives:
  • Technology
  • International footprint

Increasing Steadfast Group's share of growing Network GWP Steadfast Network

• The Steadfast Network is a key driver of Steadfast Group
  • Steadfast Group earns marketing and administration (M&A) fees from our insurer partners which are used as a revenue stream to provide products and services to the Steadfast Network as well as rebates to brokers
  • Steadfast Group has equity holdings in 62 (after hubbing) of the 361 brokers in the Steadfast Network and receives an ongoing share of dividends

• Growth of the Steadfast Network benefits Steadfast Group
  • M&A fees grow as the Steadfast Network grows, FY17 underlying growth of 9%
  • Earnings from equity brokers grow with the Steadfast Network as the Group acquires more brokers
    • Steadfast Group continues to be a natural acquirer of Steadfast Network brokers

Record gross written premium of $5.0bn

Steadfast Network brokers

Gross Written Premium (GWP)1

• GWP significantly up year-on-year driven by price and volume growth
  • 3.9% price growth second half compared to pcp
  • Strong June renewal period
• Increase in authorised representative brokers also a strong contributor to total GWP
• 18 new brokers joined the Network in FY17

121 new brokers have joined the Steadfast Network since IPO

Number of Steadfast Network brokers

• 121 brokers have joined and only two brokers have left the Network since the IPO
  • Includes 9 brokers who have joined the Network in Singapore
• Over 160 products and services available to the Network
• Steadfast Client Trading Platform and INSIGHT initiatives generating heightened interest in Network value proposition worldwide

1 Hubbing refers to merging brokers together to create sales and back office cost efficiencies. 2 Steadfast Group and APRA Intermediated General Insurance Statistics (December 2016).

Steadfast Underwriting Agencies

Strong momentum in 2H 17 as market hardens

Steadfast Underwriting Agencies

Gross Written Premium (GWP)

• Strong momentum in 2H 17 (+6.5% GWP growth compared to pcp)
  • Brokers increased agency usage in a rising premium pricing environment as prices return to technical levels – particularly during June renewal period
• Growth primarily driven by property lines
• Approximately half of GWP placed outside the Steadfast Network

Steadfast Underwriting Agencies

Operational highlights

• Launched in May 2017, specialises in accident & health
• 50/50 joint venture between Steadfast Underwriting Agencies and Fairfax Financial Holdings
• Secured renewal rights to Beazley's Australian accident & health portfolio

London super binder

• Contracted to all business lines on the Steadfast Client Trading Platform

• Opportunity for international growth through Steadfast Network in New Zealand, Singapore and, in the medium term, unisonSteadfast

• Infrastructure spend on east coast of Australia driving heavy machinery use

• Commercial price rises across portfolio in FY17

• Extension of international footprint

  • $10m of GWP in New Zealand
  • Singapore managing general agency established

• Launched landlord and contents cover to market to existing client base – backed by QBE
• Launched CHUiSaver online platform selling direct and through brokers
• Market pricing has stabilised

Steadfast Direct

Continued strong momentum

Steadfast Direct Facility

Gross Written Premium (GWP)

• Home, motor and now landlord products available to Steadfast Network brokers through the Steadfast Client Trading Platform
• Contestable marketplace for home products as AIG has joined IAL (part of IAG Group) as underwriters on the platform
• Instalment payments now available to clients will drive further sales in FY18

Investment activity

Active investment management

Equity brokers (including bolt-ons)

• Strict acquisition criteria based around cultural fit, strategic alignment and financial performance
• Constant stream of potential opportunities in and outside of the Steadfast Network
  • All brokers acquired in FY17 were Steadfast Network brokers; we remain open to external acquisitions

	2H17	1H 17	2H 16	1H 16
Acquisitions	2	7	8	2
Increasedequity holdings	5	7	7	4
Hubbed	2	5	1	3

Steadfast Underwriting Agencies

• Launched Blend, accident & health agency in joint venture with Fairfax Financial Holdings
  • Acquired renewal rights to Beazley's accident & health book in Australia
• Key management equity incentives implemented

Complementary businesses

• Created Steadfast Business Solutions by retaining key relevant functionality from White Outsourcing
  • Divested White Outsourcing as a non-core asset

unisonSteadfast

• Acquired stake in unisonBrokers, a global general insurance network
  • Renamed unisonSteadfast following transaction

Key initiative - technology

Technology implementation and return on investment

Investment

Development of current technology initiatives expected to be substantially completed in FY18

Implementation

• SCTP rollout:
  • Binding contracts with insurer partners on 5 insurance lines, full rollout of these expected in early 2019
  • Focus on increasing broker usage
• INSIGHT broker integration, 37 brokers transitioned to date
• UnderwriterCentral currently in 8 underwriting agencies, 3 conversions planned for FY18

Return on investment

• Revenue uplifts emerging for INSIGHT and UnderwriterCentral in FY18
  • INSIGHT reduces broker IT spend by up to 40%
• Steadfast Client Trading Platform partial revenue commences in FY18 with further uplift expected in FY19

Key initiative - Steadfast Client Trading Platform (SCTP)

Launched in June 2016 - end to end platform for brokers and their clients

• Exclusive to Steadfast Network brokers, clients and participating insurers
• Insurer partners contracted to provide one or more insurance class on the SCTP: AIG, Allianz, Allied World, Berkley, Calibre, CGU, CHUBB, London super binder, Procover, QBE, Vero and Zurich
• Benefits for clients: market leading policy wording, instant policy issue, genuine contestable marketplace, triage claims service
• Benefits for brokers: automated market access to leading policy providers, higher commission rates, complete data analytics
• Benefits for insurers: automated access to Steadfast Network for all policies placed on the platform, significantly reduced technology costs

• Separate SCTP wordings for each class of insurance
• Insurers contracted on SCTP:
  • Business pack Jun 2016
  • Professional lines Sep 2016
  • Liability Dec 2016
  • Property Mar 2017
  • Commercial motor panel finalised

Partial revenue commences in FY18 with further uplift expected in FY19

International footprint

Capital light expansion model

Replicate Steadfast Network

• Build revenue streams to fund development
  • M&A fees on products placed with strategic partners
• Replicate Steadfast Network model
  • Improved policy wordings
  • Broker services
  • Technology

unisonSteadfast

• Acquired stake in existing global broker network – unisonBrokers which was renamed unisonSteadfast
• Minimal impact on short term revenue
• Steadfast's current operations in Australia, New Zealand, Asia and London (wholesale) continue unchanged

unisonSteadfast global network

International footprint

Steadfast Network model replication

1. New Zealand

• 38 brokers in the Network
• NZ$330m (+7%) of gross written premium in FY17
• Equity investment in 3 brokers
• Strong buy-in from insurer partners
• Steadfast Underwriting Agencies building market presence utilising Network distribution

2. Asia

• Target Singapore initially
• 9 brokers have joined the Network
• Local CEO appointed
• First equity investment in broker by Steadfast Group
• 5 insurer partners have agreed to:
  • Pay M&A fees
  • Issue improved policy wordings
  • Pay increased commission

3. London

• Office expanded to meet demand for Lloyd's products
  • Risks suited to Lloyd's market
  • London super binder

International footprint

In June 2017, Steadfast Group acquired a stake in unisonBrokers to create unisonSteadfast, a global growth opportunity

• One of the world's largest general insurance broker networks1

• Established in 2005, headquartered in Hamburg, Germany, with office in Chicago, USA

• Brokers offer multi-jurisdictional coverage to clients by leveraging network's global presence

• First Supervisory Board meeting held in August with additional Directors:

  • Robert Kelly (Steadfast Managing Director & CEO)
  • Samantha Hollman (Steadfast COO)
  • Heinrich Eder (former Managing Director, Munich Re Australia)

• Medium and long term priorities for unisonSteadfast partnership:

  • New markets provide brokers with access to Steadfast Underwriting Agency products and London super binder
  • Market impact develop deeper partnerships with insurers across the globe
  • Services review jurisdictions to assess what services can be offered
  • Equity / succession pathway consider acquiring equity holdings in suitable brokers

• 200 brokers

• 130 countries

• $US17 billion of GWP written across the network

Premium pricing outlook

Market is hardening

Insurance cycle

• 3.8% year-on-year premium price increase across Australian portfolio
• Strong June renewal period with c.6% GWP uplift compared to pcp

Financial highlights

Group financial performance

Strong underlying earnings growth

12monthsto 30 June,$ million	UnderlyingFY17	UnderlyingFY16	Year-onyeargrowth $	Year-onyeargrowth %
Revenue ($m)	504.1	470.2	33.9	7.2%
EBITA ($m)	143.3	129.6	13.7	10.6%
EBITAmargin	284%	276%
NPAT ($m)	66.4	60.4	6.0	9.8%
EPS (NPAT) (cents)	8.87	8.09	0.78	9.6%
NPATA1($m)	87.2	82.0	5.2	6.4%
EPS (NPATA) (cents)	11.65	11.00	0.65	5.9%

FY17 underlying EBITA mix

Investments in Steadfast equity brokers

Investments in Steadfast Underwriting Agencies

Earnings from other businesses

Price and volume uplifts drove revenue growth across the Group

• Growth in EBITA margin primarily driven by broker performance combined with cost efficiencies
• Growth achieved after net direct spend on technology initiatives
• Underlying financial data reconciled to statutory data on slides 35 and 36

Underlying EBITA: FY13 – FY17

Contributions to underlying EBITA

Organic and acquisition growth

Breakdown of the growth in EBITA

• 13.9% gross organic growth, offset by lower profit shares from underwriting agencies and investment into future growth initiatives resulting in net organic growth of 7.6%
• 4.2% gross acquisition growth, offset by divestments (including White Outsourcing) resulting in net acquisition growth of 3.0%

1 Comparison of existing business in FY17 and FY16 2 Non-capitalised additional direct expense (including amortisation) on technology initiatives including Steadfast Client Trading Platform, INSIGHT and UnderwriterCentral

Steadfast Network and equity brokers financial performance

Strong organic and acquisition growth

Steadfast Network – revenue

12monthsto 30 June,$ million	UnderlyingFY17	UnderlyingFY16	Year-on-yeargrowth %	Organicgrowth %	Growth from Acquisitions& Hubbing2 %
Revenue –gross1	41.4	37.7	10.0%	10.0%	0.0%

Growth due to larger Steadfast Network and increased usage of INSIGHT and Steadfast Client Trading Platform

Equity brokers – consolidated & equity accounted (assuming 100% ownership)

12monthsto 30 June,$ million	UnderlyingFY17	UnderlyingFY16	Year-on-yeargrowth %	Organicgrowth %	Growth from Acquisitions& Hubbing2 %
Net fees & commissions3	303.3	267.0	13.6%	6.7%	6.9%
Netrevenue3	347.1	306.1	13.4%	6.8%	6.6%
EBITA	105.1	83.4	26.1%	17.6%	8.5%

• Equity brokers organic net revenue up 6.8% with expenses up 2.8% driving 17.6% organic EBITA growth for brokers
• Year-on-year EBITA growth driven by:
  • Price and volume uplift
  • Continued margin improvement
  • Accretive acquisitions
  • Cost containment
• Steadfast Client Trading Platform and hardening market to drive further commission revenue and margin uplift

4 EBITA margin = EBITA / Net revenue.

EBITA margin4: FY15 – FY17

1 Gross M&A receipts from Steadfast Network partners, and revenue derived from Insight and Underwriter Central. 2 Acquisition growth includes the net effect of acquisitions, divestments, and increased equity stakes.

3 Net of third party payments.

Underwriting agencies financial performance

Solid margin growth

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

12monthsto 30 June,$ million	UnderlyingFY17	UnderlyingFY16	Year-on-yeargrowth %	Organicgrowth %	Growth fromAcquisitions &Hubbing2 %
Net fees & commissions1	133.6	134.2	-0.4%	0.1%	-0.5%
Netrevenue1	139.0	139.3	-0.2%	0.3%	-0.5%
EBITA	62.1	63.2	-1.8%	-1.6%	-0.2%
shares)1Netrevenue (excl. profit	137.8	131.9	+4.5%	+5.0%	-0.6%
EBITA (excl. profit shares)	60.9	55.8	+9.0%	+9.2%	-0.2%

• Strong sales momentum in 2H 17 as market starts to harden
• Underwriting agencies organic EBITA growth of 9%, excluding profit shares
  • Profit shares below pcp driven by soft market conditions in prior periods
• 1.9% margin growth driven by strong June renewal period
• EBITA growth offset by:
  • Lower profit share from a soft market in previous periods
  • Funding of Blend and Emergence agencies
  • Divestment of CAIP

EBITA margin3: FY15 – FY17

1 Net of third party payments.

2 Acquisition growth includes the net effect of acquisitions, divestments, and increased equity stakes. 3 EBITA margin = (EBITA / Net revenue) after removing profit shares.

Statutory cash flow statement

Strong conversion of profit to cash

Statutory cash flow statement extract

$ million	FY17	FY16
Cash flows from operating activities
Net cash from operating activities before customer trust accountsmovement	85.6	84.0
Net movement in customer trust accounts	22.4	42.2
Net cash from operating activities	108.0	126.2
Net cash used in investing activities	(19.5)	(65.3)
Cash used for dividends	(46.5)	(31.4)
Other	(4.5)	23.1
Net cash from financing activities	(51.0)	(8.3)
Net increase/(decrease) in cash and cash equivalents	37.5	52.6
Cash and cash equivalents at 30 June	329.2	291.7
splitCashheldinto:intrust	263.2	224.7
Cashon hand(netofoverdraft)	66.0	67.0

$39.1m free cashflow in FY17
$85.6m	Cash from operations
$(46.5)mDividends paid
$39.1mFree cash flow

Statutory Balance Sheet

Strong balance sheet with leverage capacity

$ million	30 Jun 17	30 Jun16
Cash and cash equivalents	66.5	67.5
Cash held on trust	263.2	224.7
Trade & other receivables	395.2	341.9
Totalcurrent assets	724.9	634.1
Goodwill	717.4	712.3
Identifiable intangibles	155.0	165.3
Equity accounted investments	125.7	121.8
Property, plant and equipment	27.5	27.9
Deferred tax assets & other	49.5	51.1
Total non-current assets	1,075.1	1,078.4
Total assets	1,800.0	1,712.5
Trade and other payables	534.0	453.3
Subsidiaries' borrowings	1.5	1.6
Deferred consideration	5.2	11.8
Other (including tax payable, provisions)	78.3	81.0
Total current liabilities	619.0	547.7
Corporate borrowings	174.0	170.5
Subsidiaries' borrowings	31.2	30.3
Deferred consideration	1.4	1.8
Deferred tax liabilities –customer relationships	41.5	45.6
Remainingdeferred tax liability & other	19.8	18.5
Total non-current liabilities	267.9	266.7
Total liabilities	886.9	814.4
Net assets	913.1	898.1
Non-controlling interests	41.0	38.1

Corporate debtfacilities, $ million	Maturity	Total	Available at30Jun 2017
Facility A	Aug 2020	235	61
Facility B	Aug 2020	50	50
Total available		285	111

• Facility A extended in August 2017 one further year to 2020
• Substantial headroom in financial debt covenants
• $111m available at 30 June 2017 for future growth
• Divestments replenished $31m into facility
• Gearing well within Board approved maximum:

Gearing ratio	Actual	Max
Corporate1	16.0%	25.0%
Total Group	18.5%	30.0%

1 Calculated as corporate debt/(corporate debt plus equity).

Final FY17 dividend Final dividend up 22%

• Final FY17 dividend of 4.4 cps (fully franked), up 22% pcp
  • Final FY17 dividend payout ratio is 79% of underlying NPAT, in line with targeted 65% to 85%
• Total FY17 dividend of 7.0 cps (fully franked) up 17% pcp
• Dividend Reinvestment Plan (DRP) to apply to final FY17 dividend; no discount
  • DRP shares will be acquired on market
• Key dates for final FY17 dividend
  • Ex date: 11 September 2017
  • Dividend record date: 12 September 2017
  • DRP record date: 13 September 2017
  • Payment date: 13 October 2017

All dividends are fully franked

Total Shareholder Return (TSR)1

• 196% for the period since the ASX listing in August 2013
• Implies 32% CAGR from ASX listing

© 2017 Steadfast Group Limited | 28 1 TSR as at 30 June 2017 and includes final FY17 dividend and the further value to shareholders who participated in the 2015 rights issue.

Group financial performance

FY17 value drivers

Outlook & guidance

Outlook

Implementing growth initiatives

Group	Constantly seeking organic and acquisition growth
	Strong balance sheet capacity with $111m of unused debt facilities at 30 June2017 to fund future growth
	Steadfast Business Solutionscontinuing to drive centralisation of several back officefunctions
	Continue to invest in technology initiatives for future growth
SteadfastNetwork	Solid renewalperiod with moderate premium price increases across the portfolio
	Continue to grow Network service offering
Steadfast UnderwritingAgencies	Actively reviewingopportunities to launch new agencies and products
	Ongoing rollout of UnderwriterCentral with 3 new agency conversions expected in FY18
Investment activity	Activelymanaging investments
	Continue to convert pipeline of acquisitions from inside and outside the Network
	Funding from free cash flow and debt facilities
Key initiative -technology	Complete rollout of 5 key insurance lines on the Steadfast Client Trading Platform inFY18 and early FY19
	Increase broker usage
	Add further insurance lines to the platform in the future
	Implement other technology initiatives including INSIGHT rollout
Key initiative -international footprint	Continueto develop New Zealand, Asia and unisonSteadfast

FY18 guidance Organic growth and key initiatives

• FY18 guidance range:
  • Underlying EBITA of $155m-$165m
  • Underlying NPAT of $70m-$75m
• Guidance allows for1:
  • 5-7% premium price increase across brokers' portfolios
  • Growth from key initiatives
  • Broker-led organic growth and margin improvement
  • No material acquisition growth
  • Ongoing spend on new technology initiatives for future growth
  • 2H 18 impact of potential closure of builders warranty agency

Underlying EBITA2

Underlying NPAT2

1 Also refer to the key risks on pages 37 – 39 of the Steadfast Group 2017 Annual Report. 2 FY13 and FY14 are pro-forma; FY15-FY18 are underlying.

© 2017 Steadfast Group Limited | 32

Statutory profit and loss statement

$ million	FY17	FY16
Revenue
M&A fees	35.3	32.4
Revenuefrom controlled entities	361.5	349.8
Shareof profits of associates and joint venture	14.0	11.2
Otherrevenue	3.8	3.4
Total revenue	414.7	396.8
EBITA from core operations	143.3	129.6
Amortisation	(23.7)	(23.7)
Finance costs	(9.7)	(9.2)
Income tax expense	(31.6)	(28.8)
Profit after income tax and before non-trading items	78.3	68.0
Net gain on deferredconsideration estimates	3.4	23.9
Impairments	(6.3)	(13.1)
Net gainfrom sale of investment in subsidiaries	3.0	-
Net profit on change in value of investments	(0.8)	1.6
Share-based payment expense on share optionsand executive loans and shares	0.4	0.4
Other	0.2	0.3
Net profit after tax before non-controlling interests	78.2	81.1
Non-controlling interests	(11.4)	(7.6)
Net profit after tax attributable to Steadfast members (NPAT)	66.8	73.5
Other comprehensive income after tax	(0.2)	(0.1)
Total comprehensive income after tax	66.6	73.4
Net profit after tax and before amortisation (NPATA)1	87.6	95.0

Reconciliation to underlying revenue and underlying NPAT and NPATA on slide 36.

1 Calculated on a consistent basis since IPO.

© 2017 Steadfast Group Limited | 35

Statutory vs underlying reconciliation

Revenue reconciliation

NPAT and NPATA reconciliation

$87.2m

1 Calculated on a consistent basis since IPO.

© 2017 Steadfast Group Limited | 36

Addressable market

$16 billion of intermediated general insurance GWP written in 2016

Australian market – gross written premium1

Steadfast Group

3 business units focused on intermediated general insurance market

Steadfast Group (listed on ASX)
Steadfast Network	SteadfastUnderwriting Agencies	Complementarybusinesses
361 general insurance brokers	24 underwriting agencies	7 businesses supporting the SteadfastNetwork and Steadfast UnderwritingAgencies
Steadfast Group has equity holdings in62 brokers (all of which are membersof the Steadfast Network)	Steadfast Group has equity holdings in24 underwriting agencies	Mixture of wholly owned, part ownedand joint venture businesses

Steadfast Group today

Size and scale

Largest general insurance broker network in Australasia

Annual GWP $5.0 billion 361Steadfast Network Brokers Largest underwriting agency group in Australasia

Annual GWP $777 million

24 Agencies

Steadfast Network Collects Marketing & Administration (M&A) Fees, 100% owned

Largest general insurance broker Network in Australasia

perate a Network that is stronger together and theetwork of choice for brokers	$5.0b	record gros
ontinually enhance services that are provided to Steadfastetwork brokers to meet the needs of their clients	361	brokers notup 18 from
uild and develop relationships with insurersd other strategic partners		new broker
row international presence	US$17b	unisonStea

Worldwide office Network

1,300+ broker offices across Australia, New Zealand and Asia

Australia - resilient SME customer base

• 87% of customer base relates to small to medium size enterprises (SMEs) with less pricing volatility
• Focus is on advice
• Low exposure to Corporate (2%) with more significant pricing pressure

Other 6%

QBE 16% CGU 14% Allianz 10% Vero 8% Zurich 5% CHUBB 3% Other 44%

1 Based on FY17 GWP excluding New Zealand.

2 Allocation based on policy size (retail <$1k, small $1k – $9.9k, medium $10k – $299k and corporate $300k+).

3 Metrics above consist of non-IFRS financial information used to measure the financial performance and condition of Steadfast.

Steadfast Underwriting Agencies

24 agencies, 75 products

Steadfast aims to highlight each agency's specialised service by preserving its brand and unique offering which is important as approximately 50% of our agencies' business is placed with non-Steadfast brokers

Steadfast Technologies

Powering the Steadfast Client Trading Platform

Underlying revenue and EBITA (aggregate view)

$ million	UnderlyingFY17	UnderlyingFY16	Growth
Gross writtenpremiums
Consolidated brokers	1,043.2	844.5	23.5%
Equity accounted	497.5	507.9	(2.1%)
GWP from brokers	1,540.7	1,352.5	13.9%
Underwriting agencies	776.6	745.1	4.2%
Total GWP	2,317.2	2097.6	10.5%

Revenue	UnderlyingFY17	UnderlyingFY16	Growth	Organicgrowth3	Growthfromacquisitionshubbing4&
Consolidated brokers1	211.6	179.0	18.2%	3.2%	15.1%
Equity accounted	147.0	138.1	6.4%	11.3%	(4.9%)
Revenue from brokers	358.6	317.1	13.1%	6.7%	6.4%
Underwriting agencies2	253.0	250.9	0.9%	1.2%	(0.3%)
Ancillary	30.9	33.8	(8.7%)	7.6%	(16.3%)
Premium funding	45.0	48.8	(7.7%)	(7.7%)	0.0%
Steadfast network/ Corporate Office	46.7	42.2	10.7%	10.7%	0.0%
Total revenue	734.3	692.8	6.0%	4.0%	2.0%
EBITA
Consolidated brokers	60.5	44.6	35.5%	14.5%	21.0%
Equity accounted	44.6	38.7	15.1%	21.2%	(6.0%)
EBITA from brokers	105.1	83.4	26.1%	17.6%	8.5%
Underwriting agencies	62.1	63.2	(1.8%)	(1.6%)	(0.2%)
Ancillary	0.4	3.4	(87.1%)	(9.3%)	(77.7%)
Premium funding	5.8	7.4	(21.0%)	(21.0%)	0.0%
Steadfast network/ Corporate Office	(0.2)	1.1	(122.6%)	(122.6%)	0.0%
TotalEBITA	173.2	158.5	9.3%	6.6%	2.7%

**1**Includes gross up of wholesale broker commission expense of $11.0m in FY16 and $11.5m in FY17.

Includes gross up of agency commission expense ($111.6m in FY16 and $114.0m in FY17) and profit share income.

Includes bolt-on acquisitions.

**4**Acquisition growth includes the net effect of acquisitions, divestments, and increased equity stakes.

Statement of income (underlying IFRS view)

12monthsto 30 June,$ million	UnderlyingFY17	UnderlyingFY16	Growth%	Organicgrowth2%	Growthfromacquisitions&hubbing3 %
Fees and commissions¹	416.0	384.4	8.2%	2.0%	6.3%
M&A Fees	35.3	32.4	9.0%	9.0%	0.0%
Interest income	7.0	6.7	4.0%	1.5%	2.5%
Other revenue	32.5	36.0	(9.6%)	4.2%	(13.8%)
Revenue –Consolidated entities	490.8	459.5	6.8%	2.6%	4.2%
Employment expenses	(163.6)	(147.0)	11.3%	4.9%	6.5%
Occupancy expenses	(14.5)	(13.1)	10.6%	1.3%	9.2%
Other expenses including Corporate Office¹	(193.4)	(190.5)	1.5%	(0.3%)	1.8%
Expenses –Consolidated entities	(371.5)	(350.5)	6.0%	2.0%	4.0%
EBITA –Consolidated entities	119.3	108.9	9.6%	4.8%	4.7%
Share of EBITA from associates and joint ventures	24.0	20.7	16.1%	22.2%	(6.1%)
EBITA	143.3	129.6	10.6%	7.6%	3.0%
Net financingexpense	(9.7)	(9.2)	5.5%	1 Wholesale broker and agency commission
Amortisationexpense –consolidated entities	(20.3)	(20.4)	(0.5%)	expense (paid to brokers) included in revenuesand other expenses so impact to EBITA is nil
Amortisationexpense –associates	(3.4)	(3.3)	2.7%	($104.2m in FY17; $104.4m in FY16)2 Includes bolt-on acquisitions
Income tax expense	(31.6)	(28.8)	9.9%	3 Acquisition growth includes the net effect ofacquisitions, divestments and increased equity
Net profit after tax	78.3	68.0	15.3%	stakes. Includes growth from associatesconverted to consolidated entities including
Non-controlling interests	(11.9)	(7.5)	59.0%	$7.5m of employment expenses.4 For controlled entities, the amortisation of
Net profit attributable to Steadfast members (NPAT)	66.4	60.4	9.8%	customer list add back is before 30% tax butafter non-controlling interests, to reflect Steadfast
Amortisationexpense –consolidated entities4	17.4	18.3	(4.5%)	Group's proportional share. The balance sheetincludes a deferred tax liability to reflect the
Amortisationexpense –associates5	3.4	3.3	2.7%	future non-tax deductibility of amortisationexpense.
Net Profit after Tax and before Amortisation (NPATA)	87.2	82.0	6.4%	5 For associates, amortisation of customer list isnot tax effected (per Accounting Standards).

Statement of income (underlying IFRS view)

12monthsto 30 June,$ million	Underlying2H 17	Underlying1H 17	Underlying2H 16	Underlying1H 16	Underlying2H 15
Fees and commissions¹	212.9	203.1	195.4	189.0	156.0
M&A Fees	16.9	18.4	15.8	16.6	14.0
Interest income	3.3	3.7	3.3	3.4	3.1
Other revenue	14.3	18.3	19.0	17.0	17.1
Revenue –Consolidated entities	247.4	243.4	233.4	226.1	190.3
Employment expenses	(79.9)	(83.7)	(75.6)	(71.3)	(59.0)
Occupancy expenses	(7.2)	(7.2)	(6.7)	(6.3)	(5.5)
Other expenses including Corporate Office¹	(95.5)	(97.9)	(92.6)	(97.9)	(81.0)
Expenses –Consolidated entities	(182.7)	(188.8)	(175.0)	(175.5)	(145.4)
EBITA –Consolidated entities	64.7	54.7	58.4	50.5	44.9
Share of EBITA from associates and joint ventures	11.9	12.1	10.8	9.8	10.7
EBITA	76.6	66.7	69.2	60.4	55.6
Net financingexpense	(4.8)	(4.9)	(4.6)	(4.6)	(3.1)
Amortisationexpense –consolidated entities	(9.5)	(10.8)	(9.9)	(10.5)	(8.3)
Amortisationexpense –associates	(1.7)	(1.7)	(1.6)	(1.7)	(1.6)
Income tax expense	(17.1)	(14.5)	(15.2)	(13.6)	(12.5)
Net profit after tax	43.5	34.9	38.0	29.9	30.1
Non-controlling interests	(7.1)	(4.9)	(4.2)	(3.3)	(3.3)
Net profit attributable to Steadfast members (NPAT)	36.4	30.0	33.8	26.6	26.8
Amortisationexpense –consolidated entities2	8.1	9.3	8.7	9.6	7.3
Amortisationexpense –associates3	1.7	1.7	1.6	1.7	1.6
Net Profit after Tax and before Amortisation (NPATA)	46.2	41.0	44.1	37.9	35.7
Restated weighted average share #	748.7	749.0	746.7	743.5	621.2
Underlying EPS (NPAT) (centsper share)	4.86	4.01	4.51	3.58	4.30
EPS (NPATA¹Underlying) (cents per share)	6.18	5.47	5.90	5.10	5.76

1 Wholesale broker and agency commission expense (paid to brokers) included in revenues and other expenses so impact to EBITA is nil ($104.2m in FY17; $104.4m in FY16).

**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.

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

Other revenue

$million	FY17	FY16	Variance
Fee income for other professional services	19.5	22.2	(2.7)
Legal fee disbursements1	0.0	2.7	(2.7)
Other income	13.0	11.1	1.9
Total other revenue	32.5	36.0	(3.5)

Other expenses

$million	FY17	FY16	Variance
Rebate to Steadfastbrokers	11.4	10.2	1.2
Selling expenses	20.4	15.3	5.2
Commission expense2,3	104.2	104.4	(0.2)
Legal fee disbursements1	0.0	2.7	(2.7)
Administrationexpenses	46.4	45.0	1.4
Depreciation of PP&E	3.3	3.1	0.2
Corporate Office expenses	7.8	10.0	(2.2)
Total other expenses	193.4	190.5	2.9

2 Commission paid by wholesale broker and agencies to brokers.

3 Grossed up in "fees & commissions" and deducted in "other expenses" so nil impact to EBITA.

Australian General Insurance Statistics1

Premiums and claims by class of business

	Houseowners/householders			Domestic motor vehicle		CTP motor vehicle
Premiums and Claims by Class of Business	Year End Jun	Year End Jun	Year End Jun	Year End Jun	Year End Jun	Year End Jun
	2016	2017	2016	2017	2016	2017
Gross written premium ($m)	7,836	8,140	8,507	9,011	3,915	4,192
Number of risks ('000)	11,704	11,766	15,082	15,240	13,446	14,878
Average premium per risk ($)	670	692	564	591	291	282
Outwards reinsurance expense ($m)	2,502	2,564	1,605	1,723	614	927
Gross earned premium ($m)	8,140	8,410	8,254	8,681	3,650	4,156
Cession ratio	31%	30%	19%	20%	17%	22%
Gross incurred claims (current and prior years) net
of non-reinsurance recoveries revenue ($m)	4,424	5,055	6,065	6,743	2,749	2,288
Gross earned premium ($m)	8,140	8,410	8,254	8,681	3,650	4,156
Gross loss ratio	54%	60%	73%	78%	75%	55%
Net incurred claims (current and prior years) ($m)	3,515	3,716	5,056	5,438	2,152	1,662
Net earned premium ($m)	5,638	5,846	6,649	6,958	3,036	3,229
Net loss ratio	62%	64%	76%	78%	71%	51%
Underwriting expenses ($m)	1,588	1,647	1,449	1,560	352	335
Net earned premium ($m)	5,638	5,846	6,649	6,958	3,036	3,229
U/W expense ratio	28%	28%	22%	22%	12%	10%
Net U/W combined ratio	90%	92%	98%	101%	82%	62%

Australian General Insurance Statistics1 continued…

Premiums and claims by class of business

	Commercial motor vehicle		Fire and ISR		Public and product liability		Professional indemnity
Premiums and Claims by Class of Business	Year End Jun	Year End Jun	Year End Jun	Year End Jun	Year End Jun	Year End Jun	Year End Jun	Year End Jun
	2016	2017	2016	2017	2016	2017	2016	2017
Gross written premium ($m)	2,098	2,278	3,648	3,971	2,218	2,294	1,577	1,698
Number of risks ('000)	1,598	1,668	1,533	1,566	9,468	9,637	552	660
Average premium per risk ($)	1,313	1,366	2,380	2,535	234	238	2,856	2,573
Outwards reinsurance expense ($m)	268	310	1,705	1,722	878	578	456	499
Gross earned premium ($m)	2,074	2,184	4,000	4,128	2,239	2,283	1,537	1,598
Cession ratio	13%	14%	43%	42%	39%	25%	30%	31%
Gross incurred claims (current and prior years) net
of non-reinsurance recoveries revenue ($m)	1,593	1,666	2,607	3,497	1,598	1,264	1,163	1,133
Gross earned premium ($m)	2,074	2,184	4,000	4,128	2,239	2,283	1,537	1,598
Gross loss ratio	77%	76%	65%	85%	71%	55%	76%	71%
Net incurred claims (current and prior years) ($m)	1,412	1,442	1,666	1,712	527	828	713	587
Net earned premium ($m)	1,807	1,874	2,295	2,406	1,361	1,705	1,081	1,098
Net loss ratio	78%	77%	73%	71%	39%	49%	66%	53%
Underwriting expenses ($m)	508	481	1,012	1,014	544	536	239	232
Net earned premium ($m)	1,807	1,874	2,295	2,406	1,361	1,705	1,081	1,098
U/W expense ratio	28%	26%	44%	42%	40%	31%	22%	21%
Net U/W combined ratio	106%	103%	117%	113%	79%	80%	88%	75%

© 2017 Steadfast Group Limited | 50 1 Source: Australian Prudential Regulation Authority (APRA) Quarterly General Insurance Performance Statistics June 2017 (issued 17 August 2017).