TOWER LIMITED — Annual Report 2015

Nov 23, 2015

Leading light Full year results to 30 September 2015

24 November 2015

Michael Stiassny Chairman

“Deliver attractive shareholder returns by being the leading light in New Zealand and Pacific General Insurance.”

2

Delivering shareholder returns

First year as a pure General Insurer , solid underlying profit growth in NZ and the Pacific Enhanced understanding and risk management on Canterbury, increased provisions Full year loss of $6.6m due to Canterbury provisions Full year underlying profit up 29.6% to $28.2 million Full year dividend of 16.0 cps, up 10.3% ; on market share buyback progressing TOWER has further surplus capital to support shareholder returns and growth

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3

Richard Harding Chief Executive Officer

What we are covering today + Performance highlights + Canterbury

• • Operational update
• • Financial performance and risk management
• • Strategy and outlook

4

Performance highlights Strong underlying performance in first year as a pure General Insurer

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Progress on Canterbury claims, improved process
Underlying profit up supported by premium
and confidence in estimates; impact of provision
growth and benign weather environment
increase partially mitigated by reinsurance
Combined sales and service teams delivering Trade Me alliance now live, providing access
promising results and lift in customer satisfaction to new markets and a new way of operating
Capital management remains a priority
Pacific continues to deliver policy, premium and
through buyback and increased dividends
earnings growth, particularly in motor segment
while maintaining strong solvency
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5

Group performance

Reported net loss after tax of $6.6m; underlying profit of $28.2m

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$ million FY15 FY14 Movement %
Gross written premium 305.6 297.6 2.7%
-
Reported (loss)/profit after tax (6.6) 23.6
-
Canterbury earthquakes (36.2) (0.1)
-
Profit on discontinued businesses 1.4 2.0
Underlying profit after tax from continuing operations [1] 28.2 21.7 29.6%
New Zealand [2] 18.9 16.9 11.6%
Pacific 9.6 8.2 17.4%
Underlying EPS(c) [3] 16.0 11.3 41.6%
DPS(c) 16.0 14.5 10.3%
Key ratios [4]
-
Claims ratio 47.7% 50.8%
-
Expense ratio 41.9% 40.8%
-
Combined ratio 89.6% 91.6%
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1. Underlying NPAT excludes Canterbury impacts and discontinued businesses.

2. • GWP growth of 2.7%, led by Pacific

3. • Reported loss of $6.6m

   • Canterbury provision increase results in $36.2m impact on profit

   • Tax benefit attributable to divested businesses of $1.9m

4. • Strong underlying profit growth in both New Zealand and Pacific
5. • Improvement in claims and combined ratio reflects benign weather environment
6. • Investment in new markets and branding evident in expense ratio
7. • Underlying EPS of 16.0c, up 41.6%
8. • Full year dividend of 16.0c per share, up 10.3%
9. • Strong H1 due to lack of weather events

10. New Zealand figures include General Insurance only.

11. Profit attributable to shareholders from ongoing operations only and excludes Canterbury impacts, using weighted average number of shares outstanding.

12. Based on underlying business, excludes Canterbury impacts.

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6

Performance indicators

Reliable insurance business with significant unrealised potential

Gross written premium ($m) Reinsurance ratio (% of GWP)

GROSS WRITTEN PREMIUM

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200
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150
100
16.6% 15.5% 16.4%
15.5%
11.6%
17.6%
16.2% 17.8% 16.9%
50
10.0%
0
HY11 FY11 HY12 FY12 HY13 FY13 HY14 FY14 HY15 FY15
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Net earned premium ($m)

NET EARNED PREMIUM

Underlying expense ratio (%)[1]

150

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120
90
41.3% 39.7%
39.1% 38.8% 37.9%
60
37.6% 38.5% 36.9% 40.4% 41.8%
30
0
HY11 FY11 HY12 FY12 HY13 FY13 HY14 FY14 HY15 FY15
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• • GWP growth slowing due to policy run-off and lower rate increases
• • Higher reinsurance ratio reflects greater level of cover taken out
• • Expense ratio reflects investment in new markets and branding
• • Claims ratio improvement from reduced large events

UNDERWRITING Underwriting profit (excluding PROFIT Canterbury, Australia and FX) ($m) Underlying combined ratio (%)[1]

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25
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20
1
15
87.6% 90.3% 90.9% 88.3% 84.2%
10 92.5%
91.6%
82.6% 83.4% 85.9%
5
0
7 HY11 FY11 HY12 FY12 HY13 FY13 HY14 FY14 HY15 FY15
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Claims excluding Canterbury ($m)

CLAIMS

Claims ratio excluding Canterbury and Australia revaluation (%)

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80
70
60
50
40 48.5% 49.0% 52.1% 50.4% 44.5%
30 49.0% 51.3% 50.7%
45.0% 44.9%
20
10
0
HY11 FY11 HY12 FY12 HY13 FY13 HY14 FY14 HY15 FY15
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• • Potential to improve policy growth and operating efficiency

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1. Underlying expense and combined ratios for General Insurance only

Richard Harding Chief Executive Officer

What we are covering today

• Performance highlights

• Canterbury

• Operational update

• Financial performance and risk management + Strategy and outlook

8

Continued progress

Ongoing progress in Canterbury improves confidence

CLAIMS SETTLED OUTSTANDING AND CLOSED PROPERTIES 95.6% 703 As at 30 September 2015 As at 30 September 2015

• • Canterbury has greater complexity than other comparable events
• • Good progress: more than 15,000 property claims or 95.6% of total claims, 88% by value now closed
• • 286 settled last 6 months; 703 property claims outstanding

• 675 claims in progress

NUMBER OF OPEN CLAIMS BY CATEGORY

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31 MARCH 2015
30 SEPTEMBER 2015
0 200 400 600 800 1000
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Rebuilds Repairs Multi-unit dwellings Other

• • Actuarial adviser, Deloitte, brought in additional expertise to conduct file-by-file review
• • Increased provisions allow for higher repair and rebuild complexity and margin for risk
• • Gross increase in Feb 11 event provision $53.2 million in H2 reduced by reinsurance and tax

• $13.6 million impact on net profit after tax in H2, full year impact on net profit after tax $36.2m

• • Improved information set provides greater clarity on ultimate cost and improved case management abilities

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9

Improved data and confidence

File-by-file review provides greater confidence on ultimate costs and improved ability to manage claims

CLAIM LIFE CYCLE

Assessment Pre-Construction Construction Finalised Ultimate

• • Greater certainty regarding the ultimate claims cost given:
• • Now have cost development curves for different types of claims (repairs, rebuilds and multi-unit)

• Granular case-by-case claim analysis

• Enhanced view of claim cost (and risk) profile over time

• Information in a form that will improve our ability to manage claims and improve risk management

• • Allows a more strategic approach to managing the remaining claims eg.

  • Target high risk claims

  • Better understanding of settlement opportunities

• • Paid claims experience in the last 12 months has assisted Deloitte estimates

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10

Provision increases

Provision increases partially mitigated by ADC

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FEBRUARY 11 EVENT
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TOTAL CANTERBURY CLAIMS
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+$43.6m +$53.2m
792
748 458
750 450
404
500 300
250 150
Mar 15 Sep 15 Mar 15 Sep 15
Paid claims
Case estimates
IBNR / Other
$m $m
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• • Risk management has continued to evolve for Canterbury:

• EY review of apportionment

• Increase in reinsurance cover

• Expertise from Deloitte

• Detailed file-by-file review by Deloitte

• • Estimates for all Canterbury claims raised by $43.6m

• Paid claims and case estimates have risen as claims advance to completion

• IBNR has been increased reflecting greater level of understanding through Deloitte work

• • February 2011 event estimates raised by $53.2m

• Growth reflects larger scale of event, higher level of outstanding claims

• • Assumptions for recoveries from EQC remain an ongoing risk for TOWER and the industry
• • ADC has now been fully utilised and expensed in FY15

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11

Note: Claims numbers are net of EQC recoveries.

Capital and solvency

Capital of $73m above target levels

• • TOWER has a long term policy of retaining within its licensed General Insurance entity 175% of the minimum solvency capital (MSC) required under the Insurance (Prudential Supervision) Act 2010.

General Insurance solvency:

Regulatory position

Long term policy (175% of MSC)

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$37m $35m
General
$50m $52m
Insurance
Equity
$164m
$70m $70m
$7m $7m
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Capital above regulatory minimum

Capital above long term target

Minimum solvency margin Minimum solvency capital Deductions

Target margin

Minimum solvency capital

Deductions

1. Excess cash is defined as cash balance less payables.

General Insurance currently holds:

$ m 35

Current position above target based on long term policy

Plus cash at Corporate level:

1 $ m 38

Excess cash held at Corporate level.

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12

Richard Harding Chief Executive Officer

What we are covering today + Performance highlights

• Canterbury

• • Operational update

• Financial performance and risk management

• Strategy and outlook

13

A New Zealand insurer and Pacific Solid platform with the ability to grow in both New Zealand and the Pacific

FY15:

$ 28.2m

1 Underlying NPAT

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New Zealand 66%[2] Pacific Islands 34%[2]

FY15:

$ m 305.6

GWP

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New Zealand 80% Pacific Islands 20%

As at 30 September 2015:

481,133

Inforce policies

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New Zealand 86% Pacific Islands 14%

FY15:

Personal lines focus GWP breakdown

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House 37% Contents 17% Motor 30% Other 16%

New Zealand - Direct 66% New Zealand - Alliances 34%

1. Excludes impact of the Canterbury earthquakes and impact of discontinued businesses.

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1. Represents percentage of General Insurance underlying profit, excluding Corporate.

14

Strategic roadmap

Increased focus on values and a performance culture

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The
Vision leading light
in New Zealand and Pacific
General Insurance
Customer
People
Strategic pillars
Financial
Taking ownership
Open and honest
Working as one
Values
Empathy in everything
Raising the bar
Outcomes Shareholder
Returns
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• • Vision to be the leading light in New Zealand and Pacific General Insurance
• • Strategic pillars of customer, people and financial performance help us achieve this vision
• • Values guide us in how we conduct ourselves in the business to strengthen our pillars
• • Shifting emphasis from “enablers” to “values” to reinforce high performance culture across the organisation
• • All of these actions help us deliver shareholder returns

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15

our Transforming customer interactions

A new way of interacting being recognised by customers

NET PROMOTER SCORE (NPS)

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35
30
25
20
15
10
5
0
Nov 13 Sep 15
NET PROMOTER %
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Sep 15
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• • Multi-year journey to improve our customer interactions

• Investment in training and staff

• Merger of sales and service teams

• Reduced spans of control

• • Improvement in staff engagement
• • Direct customers now on Insurance Faces platform (c. 66% of policy base)

• Alliance partner migration is underway

• Decommissioning of legacy system will reduce costs and remove complexity

• • Service staff remain constrained by systems and business complexity
• • Further opportunity in simplification and customer retention

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Refresh of the TOWER brand

Refreshed brand to connect with customers and realise full potential

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• • Brand recognition asssociated with market leaders, however brand preference does not align to recognition
• • Opportunity to improve preference by creating stronger connection with customers
• • Next phase of brand development was launched in July to help realise this brand potential
• • Targeting improved confidence in our insurance products and increased conversion through:

• Communication of our story

• Product quality and innovation

• An attractive value proposition

• • Improvements in brand awareness preference and inbound inquiries

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17

New markets and channels

Trade Me Insurance provides access to new markets and a new way of operating

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• • Trade Me Insurance launched in mid August to deliver: innovation; digital presence; new markets
• • Fully online end-to-end service model
• • Price positioned to compete with industry disrupters
• • Trade Me platform provides access to 1.4 million customers
• • 80% of policies sold to date are motor where TOWER is under represented
• • Significant learning from the build-out that will assist development of TOWER direct and pursuit of other alliances

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18

Leadership in Pacific markets

Strong performance in the Pacific

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FY15 GWP by territory

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Fiji $19.1m

Papua New Guinea $18.5m

National Pacific Insurance

(Tonga, Samoa, American Samoa) $14.5m Cook Islands $5.2m

Solomon Islands $3.2m

• • Underlying NPAT up 17.4%, GWP up 12.2%: assisted by policy growth and currency
• • Policies grew 4.6%, slower in H2 due to withdrawal from a SME product in PNG
• • New partnerships support growth in Fiji, Cook Islands and PNG
• • Benign claims environments in Cook Islands, National Pacific Insurance and Solomon Islands
• • Staff engagement and customer service measures strong
• • Vanuatu launched; early days but an attractive growth market

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19

Brett Wilson Chief Financial Officer

• What we are covering today + Performance highlights

• • Canterbury
• • Operational update
• • Financial performance and risk management
• • Strategy and outlook

20

TOWER Group Profit summary

Underlying profit of $28.2m; reported net loss after tax of $6.6m

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$ million 2015 2014 Movement $ Movement %
General Insurance underlying profit 28.5 25.1 3.4 13.5%
-
Corporate financing costs and investment income 1.4 (1.1) 2.5
Corporate expenses (1.8) (2.3) 0.5 (22.6%)
Underlying profit after tax from continuing
28.2 21.7 6.4 29.6%
operations
-
(Loss)/Profit on disposal of subsidiaries 1.4 2.0 (0.6)
-
Impact of Canterbury earthquakes (36.2) (0.1) (36.1)
-
Reported net (loss)/profit after tax (6.6) 23.6 (30.2)
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• • General Insurance continued underlying profit growth
• • Impact of Canterbury earthquakes at $36.2m after tax
• • Profit from discontinued businesses due to tax benefits arising from Life business
• • Underlying profit of $10.7m in H2 compared to $17.5m in H1 due to higher claims and expenses

• Expenses rose due to timing of investment in Trade Me Insurance and rebranding

• Claims cost rose in H2 due to weather and seasonal patterns

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Underlying performance

Underlying profit growth of 29.6% supported by benign weather

Consolidated profit and loss

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$ million 2015 2014 Movement $ Movement %
Gross written premium 305.6 297.6 8.0 2.7%
Gross earned premium 304.7 285.1 19.6 6.9%
Reinsurance costs (51.9) (48.0) (3.9) 8.1%
Net earned premium 252.8 237.1 10.9 6.6%
Net incurred claims (115.6) (106.2) (9.4) 8.9%
Large events claims [1] (4.9) (14.4) 9.4 (65.6%)
Management and sales expenses (101.9) (94.0) (7.9) 8.4%
Depreciation and amortisation (4.0) (2.7) (1.4) 51.9%
Underwriting profit 26.3 19.9 6.4 32.1%
Investment revenue 14.0 14.2 (0.2) (1.2%)
- -
Financing costs (4.1) 4.1
Underlying Profit before tax 40.3 30.0 10.3 34.4%
Income tax expense (12.2) (8.3) (3.9) 46.9%
Underlying profit after tax 28.2 21.7 6.4 29.6%
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• • Reinsurance costs are up due to higher levels of cover
• • Higher net incurred claims from higher house claims (increased number of fires and higher water damage)
• • Large event claims limited by benign weather environment and impact of aggregate cover

• • Investment in the business leading to higher expenses and depreciation

  • Sales and service investment to deliver operational improvements

  • IT investment and associated costs of migrating to new platform

  • Ongoing investment in additional capability

• Large claim events are those greater than $1m. 2014 large claim events were due to storms in New Zealand.

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22

Strong balance sheet

Balance sheet supports growth opportunities and capital returns

Consolidated balance sheet

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$ million 2015 2014 Movement $ Movement %
Cash & call deposits 125.1 168.1 (42.9) (25.6%)
Investment assets 213.6 212.4 1.2 0.6%
Deferred acquisition costs 20.3 20.0 0.2 1.2%
Intangible assets 48.4 35.5 12.9 36.3%
Other operational assets/(liabilities) [1] 351.6 372.3 (20.7) (5.6%)
Total assets 758.9 808.3 (49.4) (6.1%)
Policy liabilities & insurance provisions (419.7) (422.3) (2.6) (0.6)%
Other operational (liabilities)/assets [1] (58.3) (60.0) 1.7 (2.8%)
Total liabilities (478.0) (482.3) (4.3) 0.9%
Total equity 280.9 326.0 (45.1) (13.8%)
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• • Payment of Canterbury claims impacts both reinsurance receivables and cash balances
• • Extended reinsurance cover protects balance sheet
• • Provides options to manage risk, invest for growth and maximise returns to shareholders
• • Cash applied to share buyback, investment in systems, and payment of over-cap Canterbury claims

• A number of assets or liabilities of disposed groups classified as held for sale in the financial statements in 2014.

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23

Capital management

Capital management to remain a key priority moving forward

Achievements

• • TOWER remains highly solvent with $73 million capital above target levels at the business and corporate level
• • FY15 dividend of 16.0 cps, up 10.3%
• • Full year payout ratio of 100%, in line with target range
• • $12 million in capital returned in H2 through on market share buyback

Moving forward

• • Capital management remains a priority and shareholder returns a key focus
• • Utilise reinsurance to manage risk and protect capital for the benefit of shareholders
• • Up to $22 million remaining to be returned to shareholders in current share buyback program
• • Dividend pay-out ratio to be maintained at 90-100% of underlying NPAT

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24

Richard Harding Chief Executive Officer

What we are covering today + Performance highlights

• • Canterbury
• • Operational update
• • Financial performance and risk management
• • Strategy and outlook

25

Strategic scorecard

Continued progress executing on the strategic priorities

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Staff engagement and efficiency

Management of risk and capital

Ongoing investment in systems and training Transformation of customer interactions

Increased reinsurance has lowered risk $12m of $34m buyback complete $73m in surplus capital

Leadership in Pacific markets Pacific NPAT up 17.4%

Financial performance

Underlying NPAT up 29.6% Full year dividend increased 10.3%

Vanuatu launch

New alliance partners

Customer focus to unlock brand potential

Industry consolidation opportunity

Industry concentration provides room for disrupters like Trade Me Insurance

TOWER brand refresh

Stronger service measures

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26

Medium term priorities

Significant opportunity to improve the existing business

Strategic theme Forward actions Outbound calling teams established to lift retention Growth and retention Build branding to connect with customer High performance customer service culture Execution of Trade Me opportunity; platform bedded in Trade Me Insurance marketing drive to begin New markets and channels Enhance capability in online delivery New alliances and opportunities in the Pacific and NZ Improvements in claim management, efficient supply chain Enhanced risk management framework Operational excellence Simplification of processes Focus on underwriting and pricing Maintain strong solvency, solid dividends Capital management Manage capital efficiently

27

Thank you + Questions

28

Underlying performance General Insurance

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$ million Sep-15 Mar-15 Sep-14 Mar-14 Sep-13 Mar-13 Sep-12 Mar-12 Sep-11 Mar-11
Gross earned premiums 154.3 150.4 146.0 139.1 136.4 130.8 125.0 113.9 106.2 102.1
Reinsurance (26.2) (25.7) (24.5) (23.5) (24.4) (23.5) (21.2) (20.0) (13.3) (10.2)
Net premiums 128.1 124.7 121.5 115.6 112.0 107.3 103.8 93.9 92.9 91.9
Net incurred claims [1] (60.0) (55.5) (52.7) (53.4) (48.7) (52.6) (46.4) (44.9) (41.7) (44.6)
-
Large claim events [2] (4.9) (9.6) (4.8) (6.2) (3.3) (0.2) (1.1) 0.0 0.0
Management and sales expenses (53.5) (49.5) (49.0) (43.9) (41.3) (41.7) (40.0) (38.8) (35.0) (35.9)
Underwriting profit 9.6 19.7 10.2 13.5 15.7 9.7 17.2 9.1 16.2 11.4
Investment revenue 5.8 6.3 5.8 5.7 3.9 4.2 7.9 4.5 7.5 4.0
Underlying Profit before tax 15.5 26.0 16.0 19.2 19.6 13.9 25.1 13.6 23.7 15.4
Income tax expense (4.6) (8.2) (4.0) (6.1) (6.5) (8.0) (6.9) (5.0) (9.0) (5.4)
Underlying Profit (loss) after tax 10.8 17.8 12.0 13.1 13.1 5.9 18.3 8.6 14.7 10.0
- - - - - - - - -
(Loss) on disposal of subsidiaries (3.6)
-
Impact of Canterbury earthquakes (13.6) (22.6) (0.1) (0.5) (14.7) (10.4) (3.2) (16.8) (5.4)
- - - - - -
Revaluation of Australia liabilities and FX loss [3] 0.5 (1.2) (1.1) (6.0)
Profit (loss) after tax [4] (2.8) (4.8) 12.5 11.8 11.5 (14.8) 7.8 5.4 (2.1) 4.6
Underlying ratios Sep-15 Mar-15 Sep-14 Mar-14 Sep-13 Mar-13 Sep-12 Mar-12 Sep-11 Mar-11
Combined ratio 92.5% 84.2% 91.7% 88.3% 85.9% 90.9% 83.4% 90.3% 82.6% 87.6%
Claims ratio 50.7% 44.5% 51.3% 50.4% 49.0% 52.1% 44.9% 49.0% 45.0% 48.5%
Expense ratio 41.8% 39.7% 40.4% 37.9% 36.9% 38.8% 38.5% 41.3% 37.6% 39.1%
Net incurred claims [1] (60.0) (55.5) (52.7) (53.4) (48.7) (52.6) (46.4) (44.9) (41.7) (44.6)
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1. Net incurred claims includes $1.8m of suspected arson fires in Cook Islands in the March 2014 period.

2. Claims events >1m (net of any reinsurance).

3. The impacts of the Canterbury earthquakes and the discontinuation of the Australian business are classified differently in the Group financial statements. 4. Excludes profit for the part year and loss on sale of TLNZ.

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29

Industry progress

Settlement of claims has taken significantly longer than other recent earthquakes

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TIME TAKEN FOR
CLAIMS TO BE SETTLED
75% settled
75% settled
New Zealand
Chile
Japan
120 240 360 480 600 690 780 900 1020
DAYS TAKEN
Numbers of claims settled
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• • Canterbury claims have taken significantly longer to settle for a number of reasons

• Event and damage was larger than the relevant industries were equipped to deal with

• Ongoing seismic activity over an extended period of time made it difficult to assess damage

• EQC has created delays due to the requirements for multiple

30 assessment of sites

1. Full replacement policies have made insurers responsible for remediation implementation

2. • TOWER has remained ahead of the curve on settlement due to active case management
3. • Ongoing delays have caused cost inflation and uncertainty both for insurers and customers

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TOWER Canterbury progression

Progress remains ahead of the industry

TOWER CLAIMS ESTIMATE PROGRESSION[1]

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800 792
748
707
623
458
600
400
200
0
Sep 13 Mar 14 Sep 14 Mar 15 Sep 15
($m)1Total claims cost estimate
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Net provisions outstanding ($m)
Total claims outstanding 206.6
EQC Recoveries (57.4)
Reinsurance recoverables (103.2)
Outstanding claims payable 46.2
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Paid claims

Oustanding estimates

Percentage of claims closed

• • Canterbury events have been more complex than other comparable events
• • TOWER’s costs have risen in line with other industry participants
• • TOWER has worked hard to settle all claims as soon as possible

• 95.6% of claims closed by 30 September 2015

• • Acceleration of payments indicative of continued progress

• $654m of claims paid as at 30 September, $87m in H2

• Total claims outstanding of $206.6m (inclusive of EQC recoveries)

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31

1. Net of claims attributable to EQC, gross of reinsurance

Provision increase

FY15 Net Profit after tax impact of increased provisions of $36.2m

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Feb 11 event Total Canterbury
($m) H1 H2 FY15 H1 H2 FY15
Balances outstanding
Claims estimates [1] 404.3 457.5 748.3 792
Reinsurance recoveries (335.2) (374.4) (662.6) (692.2)
Net claims expense to TOWER 69.1 83.2 85.7 99.8
Movements
Movements in claims costs 35.5 53.2 88.7 41.4 43.6 85.1
Reinsurance recoveries (4.1) (39.2) (43.3) (10.0) (29.6) (39.6)
- -
Cost of the ADC 4.8 4.8 4.8 4.8
Net provision increase 31.4 18.9 50.3 31.4 18.9 50.3
Tax benefit (8.8) (5.3) (14.1) (8.8) (5.3) (14.1)
Net impact 22.6 13.6 36.2 22.6 13.6 36.2
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• • Full year cost of Canterbury earthquakes now $36.2m, additional $13.6m costs incurred in H2
• • Increase in provision due to movement in estimates for the Feb 11 event, the only event that has exceeded reinsurance limits
• • Reinsurance recoveries for Feb 11 event in FY15 reflect recoveries against ADC
• • Costs have risen at a greater level for the Feb 11 event due to impact of claims allocation between the four different events
• • ADC has now been fully utilised and has therefore been expensed in the period
• • Higher level of detail in estimate and reserve process results in higher confidence in estimates

• Net of EQC recoveries

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Leading light

This presentation has been prepared by TOWER Limited to provide shareholders with information on TOWER’s business. This document is part of, and should be read in conjunction with an oral briefing to be given by TOWER. A copy of this webcast of the briefing is available at http://www.tower.co.nz/investor-centre/

It contains summary information about TOWER as at 30 September 2015, which is general in nature, and does not purport to contain all information a prospective investor should consider when evaluating an investment. It is not an offer or invitation to buy TOWER shares.

Investors must rely on their own enquiries and seek appropriate professional advice in relation to the information and statements in relation to the proposed prospects, business and operations of TOWER. The data contained in this document is for illustrative purposes only. Past performance is not a guarantee of future performance and must not be relied on as such. The information in this presentation does not constitute financial advice.

Forward looking statements

This document contains certain forward-looking statements. Such statements relate to events and depend on circumstances that will occur in the future and are subject to risks, uncertainties and assumptions. There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements, including, among others: the enactment of legislation or regulation that may impose costs or restrict activities; the re-negotiation of contracts; fluctuations in demand and pricing in the industry; fluctuations in exchange controls; changes in government policy and taxation; industrial disputes; and war and terrorism. These forward-looking statements speak only as at the date of this document. Solvency estimates contained herein are yet to be reviewed by the Reserve Bank of New Zealand.

Disclaimer

Neither TOWER nor any of its advisers or any of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents (other persons) makes any representation or warranty as to the currency, accuracy, reliability or completeness of information in this presentation.

To the maximum extent permitted by law, TOWER and the other persons expressly disclaim any liability incurred as a result of the information in this Presentation being inaccurate or incomplete in any way.

The statements made in this presentation are made only as at the date of this presentation. The accuracy of the information in this presentation remains subject to change without notice.

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