MYSTATE LIMITED — Investor Presentation 2015

August 2015

MyState is proud to continue its principal sponsorship of the Australian Wooden Boat festival, estimated to have contributed $80 million to the Tasmanian economy in 2015.

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Agenda

1 Overview Melos Sulicich CEO & Managing Director 2 Financial Results David Harradine Chief Financial Officer 3 Outlook Melos Sulicich CEO & Managing Director

The Rock proudly supports the CQ NRL bid.

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MyState Limited Investor Presentation

Overview of FY2015 Financial Performance

• Statutory NPAT $32.5m, up 10% on prior year.

• Underlying NPAT $29.7m, up 0.3% on prior year.

• Underlying revenue $119.5m, up 0.2% on prior year.

• Record settlements $1bn, up 75% on prior year.

• Loan book $3.6bn, up 16.3% on prior year and growth of 2.3x system.

• Capital adequacy ratio 12.7%, further enhanced through issue of $25 million Tier 2 notes post year-end.

• Underlying cost-to-income ratio down 10bps to 64.4%.

• Final dividend 14.5 cps steady on prior year.

• Full year dividend 28.5 cps steady on prior year. Dividend payout ratio of 77%.

A sound underlying result which positions the Group well for the future.

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MyState Limited Investor Presentation

Continued focus on strategic priorities

• Growth in our • Record settlements – up 75% on prior year. revenue drivers • Restored loan book growth of 16.3% (at 2.3x system).

• GROW Simplifying processes • Enhanced systems will further improve service and turnaround times.

• for third party and

• SIMPLIFY direct channels • Product simplification and rationalisation is continuing.

• • Easy to sell, easy to buy, easy to administer.

• Capital ratio and arrears • Sound capital ratio at 12.7%, further enhanced

• STRENGTH through issue of $25M Tier 2 notes post year-end. levels maintained • Credit quality remains a cornerstone with BDD and arrears at continuing low levels.

• Better broker and • Continued investment in third party channel

• RELATIONSHIPS relationships and systems to support growth and customer engagement profitability.

• • Renewed focus on the customer, with engagement improving from already high levels.

• Transforming • A new, experienced, and capable executive team.

• TRANSFORM capability • Technology transformation underway.

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MyState Limited Investor Presentation

Loan book growth accelerated through the year

Settlements reach $1bn for the first time in the Group’s history

Continued acceleration in settlements with 2H 2015 ~50% above 1H 2015 FY15 settlements grew at 75% above prior year

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MyState Limited Investor Presentation

Agenda

1 Overview Melos Sulicich CEO & Managing Director

2 Financial Results David Harradine Chief Financial Officer 3 Outlook Melos Sulicich CEO & Managing Director

MyState and Tasmanian Perpetual Trustees partnered to showcase the very best in local Tasmanian produce at 2015’s Agfest.

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MyState Limited Investor Presentation

Revenue increases despite competition and RBA rate cuts

Underlying earnings maintained

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MyState Limited Investor Presentation

Economic conditions continue to improve in Tasmania

The Tasmanian economy continues to improve:

• Business confidence high, with private investment spending posting solid gains during the financial year after a period of weakness.

• The major project pipeline is healthy and conditions are favourable.

• Household consumption has continued to record strong improvements and dwelling approvals posted strong gains through FY15.

• The labour market recorded further improvement in FY15 and this is expected to continue.

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MyState Limited Investor Presentation

Mixed economic conditions in Queensland

The Queensland economy is mixed:

• Falling mining investment representing a challenge.

• Major areas are benefitting from an increase in dwelling approvals.

• The labour market remains soft.

• Low interest rates and a lower Australian dollar are providing some support, and improvement is broadly expected in the short to medium term.

• No signs of stress in The Rock loan book.

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MyState Limited Investor Presentation

Sound underlying result and building for FY16

Revenue improves despite competitive intensity and NIM compression

Lending book velocity to underpin future growth and profitability

• Earnings stable, laying the foundations for FY16 earnings growth.

• RBA rate cuts and loan book growth presented hurdles to net interest income.

• Pleasing performance in Banking and Wealth non-interest income.

• Operating expenditure contained through focused cost management.

• Bad & doubtful debts benefitting from sound credit quality and conditions.

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MyState Limited Investor Presentation

Net Interest Margin

Competition, RBA rate cuts and business growth impacting margin Targeted asset repricing to ease NIM pressure Funding costs expected to continue to ease in FY16

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MyState Limited Investor Presentation

A targeted strategy and commitment to execution deliver record organic growth

Housing loan growth at 2.5x system

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MyState Limited Investor Presentation

Product and pricing strategy successful in attracting quality lending business

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MyState Limited Investor Presentation

Sound loan book growth with investor loans below APRA ADI average

Investor loans comprise 13% of the loan book …well below the APRA ADI average of 35%[1 ]

1. APRA banking statistics June 2015.

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MyState Limited Investor Presentation

Diversified funding base supports loan growth

Successful RMBS transaction completed in 1H 2015 provides further support for growth

1. APRA banking statistics June 2015.

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MyState Limited Investor Presentation

2H 2015 acceleration of retail deposits increases share of system growth

Source: APRA Banking Statistics June-15 (MYS = MSB + ROK)

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MyState Limited Investor Presentation

Delivering on our strategy to further diversify the loan book and achieve lower geographic concentration

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MyState Limited Investor Presentation

Wealth continues to deliver consistent, stable returns to the business

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MyState Limited Investor Presentation

Tight operating cost management continues

• Cost to income ratio (underlying earnings) improves by 20bps to 64.3%

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MyState Limited Investor Presentation

Strong credit quality and conditions reflected in the continued decline in bad and doubtful debts

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MyState Limited Investor Presentation

Strong asset growth contributed to a decline in the Group’s capital ratio

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13.94%
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• Capital further enhanced through $25 million Tier 2 medium term notes issue post balance date.

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MyState Limited Investor Presentation

Agenda

• 1 Overview Melos Sulicich CEO & Managing Director

• 2 Financial Results David Harradine Chief Financial Officer

• 3 Outlook Melos Sulicich CEO & Managing Director

The MyState Student Film Festival showcases young Tasmanian talent to Australia – and the world.

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MyState Limited Investor Presentation

Employee Connectivity and Customer Engagement both increase

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2014 2015
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Analysis of the Employee Connectivity Survey points to the following factors:

• New leadership and company direction

• Strong internal communications

• Culture building centred on ‘The MyState Way’

Customer Engagement strength driven by:

• Improvement in new customers’ experience of on-boarding

• Continued strong customer service experienced across all channels

• Reduction in reported errors

• Staff benefits and rewards and recognition programs

• Employee/community recognition

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MyState Limited Investor Presentation

Pending Regulatory Reform

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MyState Limited Investor Presentation

Sustained growth…

…targeted, transformative investment

• •

…leading to enhanced performance

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MyState Limited Investor Presentation

Important notice and disclaimer

The material in this presentation contains summary background information about the business of MyState Limited (MYS) as at the date of this presentation. The information contained in this presentation is in summary form and is not, and does not purport to be, complete.

This presentation contains certain forward-looking statements including statements regarding MYS’ current belief, intent or expectations with respect to the financial condition and performance, results of operations, business plans and objectives of management, capital adequacy, risk management practices and specific or general provisions. Forward looking-statement s may be identified by words such as “should”, “expect”, “estimate”, “likely’”, “believe”, “ anticipate”, “planned” and similar expressions. All such forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors many of which are outside the control of MYS which may cause the results or actual performance to be materially different from the future results or performance expressed or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on such forward-looking statements , which speak only as of the date of the presentation.

No presentation or warranty is or will be made by any legal or natural persons in relation to the accuracy or completeness of all or part of this document, or any constituent or associated presentation, information or material (collectively, the Information), or the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in, or implied by, the information or any part of it. The information includes information derived from third party sources that has not been independently verified.

To the full extent permitted by law, MYS disclaims any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions, any events occurring after the date of the presentation or any unexpected events or circumstances.

Nothing contained in the presentation constitutes investment, legal, tax or other advice. You should make your own assessment and take independent professional advice in relation to the information and any action on the basis of

the information. In particular, this presentation is not intended to be relied upon as advice to any person and does not take into account the financial situation, objectives or needs of any person. These matters should be considered and appropriate financial advice obtained, before making an y investment decision in relation to MYS.

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MyState Limited Investor Presentation