STEADFAST GROUP LIMITED — Investor Presentation 2018

May 27, 2018

28 May 2018

Market Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Dear Sir

INVESTOR DAY PRESENTATION

Please see attached the Investor Day slides being presented today in Melbourne and on Wednesday 30 May in Sydney.

Yours faithfully

Linda Ellis Group Company Secretary & Corporate Counsel

Steadfast Group Limited ABN: 98 073 659 677 ACN: 073 659 677 Level 4, 99 Bathurst Street, Sydney NSW 2000 t 02 9495 6500 f 02 9495 6565 www.steadfast.com.au

STRENGTH WHEN YOU NEED IT

Steadfast Group Limited 2018 investor day

28 May 2018 - Melbourne 30 May 2018 - Sydney

Steadfast Group investor day

Program

Topic	Presenter
Introduction	Robert Kelly
Monetising our InsurTech	Robert Kelly
Steadfast Client Trading Platform (SCTP) demonstration	Lisa Woodley, Vibul Imtarnasan, Nick Cook
unisonSteadfast	Samantha Hollman
Steadfast Underwriting Agencies –strategies driving performance	Simon Lightbody

Steadfast Group investor day

Introduction

• Investor day is focused on strategic initiatives (not on financials or premium pricing commentary) and offers the opportunity to hear from members of the senior management team
  • 2015 investor day introduced our senior management team
  • 2016 investor day introduced our technology and underwriting agency leadership teams
  • 2017 investor day focused on the evolution of our broker services through the Steadfast Client Trading Platform, our international growth strategy and recent activity in the Steadfast Underwriting Agencies
  • 2018 investor day focuses on monetising our InsurTech and further demonstrates the functionality of the Steadfast Client Trading Platform

Robert Kelly – MD & CEO, Steadfast Group

Benefits for clients, insurers and brokers

• Market leading technology exclusive to Steadfast Network brokers, clients and participating insurers
• Benefits for clients:
  • Genuine contestable marketplace generating improved pricing competition and coverage
  • Market leading policy wordings
  • Instant policy issue, maintenance and renewal all on a market contestable basis
  • Supported by Steadfast triage
• Benefits for insurers:
  • Automated access to Steadfast Network for all policies placed on the platform
  • Significantly reduced technology and distribution costs
  • Data analytics and market insights, live 24/7
  • Updated policy wordings, based on prior claims scenarios
• Benefits for brokers:
  • Automated market access to leading insurers at no access cost
  • Bespoke market leading policies
  • Fixed commission, same for all insurers
  • In-depth data analytics
  • Stimulates advisory discussions with clients

Steadfast Direct

• Part of SCTP offering for Steadfast Network brokers
• Automated, contestable platform offering retail home, motor and landlords cover
• Cross-selling opportunity for brokers
• $200m GWP written since inception in late FY15

Insurers (not clients) pay fixed commissions due to reduced distribution cost, improved efficiency and whole market access

Insurer partners on the Steadfast Client Trading Platform (SCTP)

Size of the opportunity

Potential Steadfast Network GWP that can be transacted on SCTP

• c.80% of Steadfast Network GWP can potentially be transacted through the platform
  • Business pack
  • Commercial motor
  • Commercial property & ISR
  • Liability
  • Professional risks
  • Strata (currently in beta testing)
  • Retail home and motor (via Steadfast Direct)
  • Rural and farm under consideration to join SCTP
• Some risks are too niche and specialised for the platform

Ramp up of SCTP usage

• Targeting 60% of that 80% to be transacted through the SCTP in the next 5 years1
• Take up by brokers will take time due to inertia, getting used to platform
• Strong month for business pack following QBE joining the platform and Steadfast Convention in April 2018

Steadfast Network GWP (FY17)

SCTP potential usage1

80%

Steadfast Network GWP which could potentially be transacted on SCTP

60%

of the 80% of available GWP targeted to be transacted through SCTP in the next 5 years

Driving Steadfast Network broker usage of the SCTP

▪ Actual examples of analysis showing potential remuneration uplift for each Steadfast Network broker:

SCTP implementation and return on investment

▪ Net technology spend reaches steady-state level

Uplift for Steadfast Group

1. Improved client outcomes to drive growth of Steadfast Network

• Grow market share by offering market leading coverage for clients
• Attract new brokers to join the Network and retain existing brokers

2. Uplift in remuneration for equity brokers

• Steadfast Group has equity holdings in 64 Steadfast Network brokers
  • Receives corresponding share of dividends from equity stakes

3. Uplift in marketing and administration fee

▪ Steadfast Group receives increased M&A fee as a result of SCTP growth

4. Net technology spend

• Net technology spend starts to fall after CY19
• Spend brought forward to maximise returns from SCTP
• Revenue from technology initiatives will reduce net expenditure as rollout and usage increases

5. London 'super' binder participation – Steadfast Underwriting Agencies

• London 'super' binder now live on 4 business lines
• Strong start since Agencies joined the SCTP
• Driving uplift in Steadfast Underwriting Agencies' profit

Contribution to Steadfast Group

• 5 business lines currently available to be transacted through SCTP (equivalent to 61% of Steadfast Network FY17 Australian GWP)
  • Strata currently in beta testing with other lines under consideration to join the SCTP
  • Steadfast Direct also available to brokers
• Initial ramp up of SCTP usage will take time as brokers get used to using platform
  • FY19 focus is on business pack line and Steadfast Direct
• More detail on contribution to FY19 at FY18 results announcement on Friday 24 August 2018

	5 year target1	Example below
Steadfast Network GWP targeted to be available through SCTP	80%	61%5 business lines currently live on SCTP(excluding Steadfast Direct)
Available GWP targeted to be transacted through SCTP	60%	10% / 30%

Example of EBITA impact to Steadfast Group (ASX listed entity) per annum1

Increase in dividends from equity ownership in Steadfast Network brokers (based on average ownership %)

• increase in marketing and administration fee from Network sales growth and SCTP usage

= EBITA impact to Steadfast Group per annum:

10% of available GWP transacted through SCTP = + ~$4 million

30% of available GWP transacted through SCTP = + ~$13 million

SCTP demonstration

Lisa Woodley – EGM, broker technology services

Vibul Imtarnasan – EGM, technology solutions

Nick Cook – EGM, partner & broker services

SCTP demonstration Rationalise forms into a single view

Steadfast Virtual Underwriter rationalises forms into one front-end interface for each insurance product

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SCTP demonstration Quote screen and dashboard comparison

Select	Insurer	Description	Received	Status
	AAI Limited trading as VeroInsurance	Hairdresser$7,504.80 Quote # QTE045293039.Variations Imposed Hairdresser	21/05/2018 4:18:04PM	Quated
	AIG Australia Limited	Hairdresser$6,603.92 Quote # 719974-1-1-0. VariationsImposed Conditional	21/05/2018 4:18:10PM	Quoted (NotBindable)
	CGU Insurance Limited	Hairdresser$7,644.06 Quote # E15T1765216. VariationsImposed Conditional Hairdresser	21/05/2018 4:18:03PM	Quoted (NotBindable)
	Calibre Insurance	Hairdresser$7,843.65 Quote # SBPQTE12109187.Variations Imposed	21/05/2018 4:18:13PM	Quoted
	Miramar Underwriting Agency PtyLtd	Hairdresser$5,851.88 Quote # 24825-1-0-0. VariationsImposed Hairdresser	21/05/2018 4:18:15PM	Ouoted
	QBE Insurance (Australia)Limited	Hairdresser$7,715.56 Quote # Q765770BPK. VariationsImposed Hairdresser	21/05/2018 4:19:33PM	Quoted
	Zurich Australian InsuranceLimited	Hairdresser$10,757.88 Quote # QN002959165-1.	21/05/2018 4:18:08PM	Referral Required

Quote screen Dashboard comparison

O Policy
Insurer	Endorsements	AcceptanceConditions	Benefits	BrokerFee:	TotalPayable
SCTP Insurer(s)
Quote #17641-1-1-0	No endorsements imposed atpolicy level	No acceptanceconditions	Benefit#1	$0.00	$1,599.08
CalibreQuote#SBPOTE11612171	No endorsements imposed atpolicy level	No acceptanceconditions	Benefit#1Benefi#2	$0.00	$2.199.42
MIRAMARQuote #26915-1-0-0	No endorsements imposed atpolicy level	No acceptanceconditions	Benefit#1	$0.00	$2,546.81
QBE UATQuote#Q644073BPK	No endorsements imposed atpolicy level	No acceptanceconditions	Benefit#1Benefit#2	$0.00	$2,519.94
veroQuote#QTE002263339	No endorsements imposed atpolicy level	No acceptanceconditions	Benefit#1	$0.00	$2,702.15
$\mathbf{Z}$ZURICHQuote#QN010092806-1	No endorsements imposed atpolicy level	No acceptanceconditions	Benefit#1Benefit#2	$0.00	$4,301.44
Non SCTP Insurer(s)
CGU SEIT THROOCH.Quote#E15T1011649Remarks	No endorsements imposed atpolicy level	No acceptanceconditions	Benefit#1	$0.00	$2,958.65

SCTP demonstration

Data analytics

• Owning our data allows insights for brokers
• Examples of data analytics from SCTP:

SCTP demonstration

Advantages of the platform

• Straight-through processing for all policy stages for clients, brokers and insurers
  • Minimise data entry
  • No re-keying of data
• Single data entry and multiple quotes from multiple insurers for new business
  • Ability to quickly get a market view at renewal
• Quotes are "firm" rather than "indicative" to minimise client interaction with re-pricing upon binding the policy
• Immediate response policies issued in real time
• Value-based comparison of quotes:
  • Price
  • Excess
  • Policy variations
• Data insights to facilitate improved coverage for clients
• Insurers have anonymised view of their performance against their competitors
  • Insurers can adjust pricing and features in real-time to adapt to market conditions

unisonSteadfast

Samantha Hollman – COO, Steadfast Group

unisonSteadfast

Medium term strategy

• 40% equity stake in unisonSteadfast
  • One of the world's largest general insurance broker networks offering multi-jurisdictional coverage
  • Steadfast Group CEO and COO have joined the Supervisory Board

Medium and long term priorities

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

unisonSteadfast global network

unisonSteadfast Recent developments

• GWP aggregation
  • GWP data gathering from unisonSteadfast brokers
  • Discussions with global insurers on aggregation of global GWP
  • Leveraging Steadfast Group's relationships with global insurers
• Access to London market for unisonSteadfast brokers
  • Leveraging London 'super' binder to improve access to key market
  • Creation of first revenue stream for Steadfast Group
• Increased professional indemnity cover for unisonSteadfast brokers
  • Leveraging Steadfast's relationship with PI provider
  • Creation of first new product for unisonSteadfast brokers

unisonSteadfast provides an international presence and global growth platform

200	130
brokers	countries

Steadfast Underwriting Agencies

Simon Lightbody – Chief Executive Officer, SUA

Steadfast Underwriting Agencies

Strategies driving strong performance

• London 'super' binder on Steadfast Client Trading Platform
  • Live on 4 business lines
  • Good early traction with growing share of transactions
• Aligning agency product with distribution
  • Capacity providers aligned to specialist markets in which Agencies operate
  • Product innovation and strong claims support driving broker usage of Agencies
• Pricing cycle tailwind
  • Hardening market allows Agencies to benefit as prices return to technical rates

Steadfast Underwriting Agencies

$840m CY2017 gross written premium

25 underwriting Agencies

100+ niche products

SUA GWP ($m)

Steadfast Group investor day – key points

Robert Kelly – MD & CEO, Steadfast Group

Steadfast Group investor day

Key points

• 1. Market leading InsurTech
  • Delivering significant benefits to clients, insurers and brokers
  • Straight-through automated processing simplifying complex processes

2. Monetising our InsurTech

• Client benefits, efficiency and fixed remuneration to drive broker usage
• SCTP to deliver significant uplift in Steadfast Network broker remuneration and M&A fees
• Targeting 60% of the 80% of available Steadfast Network GWP to be transacted through the SCTP in next 5 years1
• Steadfast Underwriting Agencies also benefiting from participation on SCTP

3. unisonSteadfast – medium term growth opportunity

• GWP aggregation to leverage existing relationships with global insurers
• First revenue stream for Steadfast Group and first new product provided to unisonSteadfast brokers
• 4. Steadfast Underwriting Agencies strategies are driving strong performance
  • Strong start for London 'super' binder on SCTP
  • Capacity providers aligned with products
  • Pricing cycle tailwind

Important notice

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

This presentation contains information in summary form which is current as at 28 May 2018. 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", including statements about "targeting", 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 (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.

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.