New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

Heartland Group Holdings / Equity Bottom-Up

<ul><li>Heartland Group (HGH) will report its 1H26 result on Thursday 26 February.</li><li>We expect a solid result that shows the business is in a much better position than 12 months ago, with the shift in receivables continuing towards reverse mortgages and away from its underperforming motor and business lending.</li><li>We also see a chance of a modest guidance upgrade. Our key focus areas will be: (1) reverse mortgage growth; we expect both NZ and Australian receivables to be up &gt;+7% versus FY25 on a constant currency basis; (2) a sequential improvement in non-performing loans in Motor and, more importantly, Business lending; and (3) continued opex control; our employee count indications have New Zealand employees up just +2%, with Australian employees +15% since its FY25 result.</li></ul>

Heartland Group (HGH) will report its 1H26 result on Thursday 26 February.We expect a solid result that shows the business is in a much better position than 12 months ago, with the shift in receivables continuing towards reverse mortgages and away from its underperforming motor and business lending.We also see a chance of a modest guidance upgrade. Our key focus areas will be: (1) reverse mortgage growth; we expect both NZ and Australian receivables to be up &gt;+7% versus FY25 on a constant currency basis; (2) a sequential improvement in non-performing loans in Motor and, more importantly, Business lending; and (3) continued opex control; our employee count indications have New Zealand employees up just +2%, with Australian employees +15% since its FY25 result.

Heartland Group 1H26 Preview—Back in Balance