BS:CT

04 September 2013

Manager of Company Announcements

ASX Limited

Level 5, 123 Eagle Street

Brisbane Qld 4000

Dear Sir/Madam

RE: Wide Bay Australia Limited (WBB) – Investor Presentation

Please find attached an investor presentation to be presented to analysts and

representatives of institutional investors.

The presentation provides a review of Wide Bay Australia’s operating activities

and an explanation of underlying earnings of the group for 2012/13 financial

year.

Yours sincerely,

……………………………………..

Bill Schafer

Company Secretary

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Wide Bay Australia Ltd Investor Presentation

04 September 2013

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Overview

Overview

Statutory consolidated profit after tax $2.453m for 12/13 down from $17.578 in 11/12

Cash earnings after tax $10.656m for 12/13 down from $14.667m in 11/12

Total dividend for the year 17c – 13c interim dividend and 4 cent final dividend

Write down equity accounted investment by $7.377m to nil which is a capital neutral

Provisions in the insurance subsidiary (MRM) up to $11.4m to cover write-offs over 4 years

Loan book at $2.229b at 30 June 2013, up from $2.197b at 31 December 2012

Budgeted consolidated statutory profit after tax for 13/14 at $13m - $14m

1. Statutory consolidated profit after tax $2.453m for 12/13 down from $17.578 in

11/12

2. Cash earnings after tax $10.656m for 12/13 down from $14.667m in 11/12

3. Total dividend for the year 17c – 13c interim dividend and 4 cent final dividend

4. Write down equity accounted investment by $7.377m to nil which is a capital

neutral

5. Provisions in the insurance subsidiary (MRM) up to $11.4m to cover write-offs over

4 years

6. Loan book at $2.229b at 30 June 2013, up from $2.197b at 31 December 2012

7. Budgeted consolidated statutory profit after tax for 13/14 at $13m - $14m

Overview 2012/13

2

A difficult year impacted by:

•Mortgage Risk Management Pty Ltd (MRM) provisions

•Write off of Financial Planning investment

•Home Loan book contraction to February 2013

•Collective impairment introduction

•Unsuccessful acquisition costs

However some positive news:

•Strategic Plan developed in May 2013 and now being implemented

•Restructure aligned to key opportunities - now in place

•Home Loan book recovered to June 2013

•Personal Loan capability delivered and getting strong support

•Deposit growth 5% and self funding ratio 73%

•Margin management

•Mobile App & social media capability developed

•All Staff now have KPI’s

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Loan book at $2.229b at 30 June 2013, up from $2.197b at 31 December 2012

Budgeted consolidated statutory NPAT for 13/14 at $13m - $14m

Financial Overview

3

Statutory NPAT $2.453m for 12/13 down from $17.578 in 11/12

Underlying cash NPAT $12.126m for 12/13 down from $14.667m in 11/12

Total dividend for the year 17c – 13c interim dividend and 4c final dividend

Write down of equity accounted investment by $7.377m to nil (which is capital neutral)

Capital for the group strong at 13.82%, above Board target of 13.00%

Mortgage Risk Management Pty Ltd (MRM) capital strong and in excess of prudential target

Provisions in the insurance subsidiary (MRM) up to $11.4m to cover write-offs over 4 years

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Net Interest Margin

4

1.500

1.600

1.700

1.800

1.900

2.000

2.100

2.200

2.300

JUL

12

AUG

12

SEP

12

OCT

12

NOV

12

DEC

12

JAN

13

FEB

13

MAR

13

APR

13

MAY

13

JUN

13

OPERATING MARGIN (excluding share capital)

for the year ended 30 JUNE 2013

MARGIN

3.25 3.00 2.75

RBA Cash Rate

The operating margin is a twice monthly net interest margin calculation based on the actual interest rates on interest

bearing assets and liabilities.

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Loans & Deposits

5

The loans portfolio is as per the statutory financial accounts, net of provision for doubtful debts and intercompany

loans.

Self Funding Ratio

2011 64%

2012 70%

2013 73%

0

2

4

6

8

10

12

14

16

18

20

22

24

08 09 10 11 12 13

$1

,99

5,9

70

,00

0

$2

,14

0,1

42

,00

0

$2

,25

4,8

37

,00

0

$2

,27

8,9

65

,00

0

$2

,22

9,4

48

,00

0

$2

,22

9,1

40

,00

0

hu

nd

red

mill

ion

s

June 30

Loans portfolio

0

2

4

6

8

10

12

14

16

18

20

22

24

08 09 10 11 12 13

$1

,12

7,0

41

,00

0

$1

,24

7,6

35

,00

0

$1

,30

9,8

87

,00

0

$1

,45

3,9

51

,00

0

$1

,56

9,6

55

,00

0

$1

,61

9,5

87

,00

0

hu

nd

red

mill

ion

s

June 30

Retail Deposits

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Loans & Advances (past due)

6

Loans and advances exclude loans which were restructured and arrears capitalised under the NCCL Hardship Provisions.

0

20

40

60

80

100

120

JUN 11 JUN 12 JUN 13

$m

Loans and advances past due (excluding effects of hardship accounts)

30 - 90 days past due Past due over 90 daysFor

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Funding

7

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

2011 2012 2013

55.5% 60.0% 62.3%

0.0%

2.1% 3.4%

37.1% 30.6% 27.0%

1.5% 1.1% 1.1% 6.0% 6.2% 6.2%

%

Source of Funds

Share Capital

Sub debt

Securitisation

NCDs

Deposits

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Cash Earnings

8

SIGNIFICANT ITEMS Reconciliation of Cash Earnings

2013 2012

Underlying cash NPAT $12.126m $14.667m

Impairment of FTS ($5.164m) -

One-off provision for doubtful debts* ($3.094m) -

LMI commutation expense write-off ($0.925m) -

One-off acquisition costs ($0.490m) -

One-off insurance premium from commutation - $2.450m

One-off credit clearing account dispute - $0.461m

Statutory NPAT $2.453m $17.578m

The provision for doubtful debts adjustment includes $3.2m underwriting expense from MRM considered to be a one-

off adjustment relating to the re-examination and revised modelling of the MRM insured loan book.

'One-off provision for doubtful debts' includes the amount of provisions in the chief entity and MRM considered by

management to represent one-off issues or extraordinary legacy items.

The adjustment includes flood related provisions and a one-off non-recourse loan.

*

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Cash Earnings data

9

KEY METRICS - CASH EARNINGS

2013 2012 Change

2013 v 2012

Underlying cash NPAT $12.126m $14.667m Down 17.3%

Cost to income ratio (chief entity) - cash NPAT 71.3% 65.6% up 5.7%

Cost to income ratio (group) - cash NPAT 71.9% 69.8% up 2.1%

Return on equity - cash NPAT 6.5% 7.4% down 0.9%

Earnings per share - cash NPAT 33.51c 41.00c down 7.49c

Underlying cash earnings is used by management to present an overall view of the group's underlying

operating results.

The cash earnings exclude items which are considered to be volatile, one-off in nature or distortions of the

current period's results. The calculations are consistently calculated across reporting periods and do not

discriminate between income and expense items.

Non-statutory financial disclosures are not audited. For

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Statutory Net Profit data

10

KEY METRICS - STATUTORY NET PROFIT

2013 2012 Change

2013 v 2012

Statutory NPAT $2.453m $17.578m down 86.0%

Total dividend for year 17.0c 47.5c down 30.5c

Cost to income ratio (chief entity) - statutory NPAT 94.7% 59.3% up 35.4%

Cost to income ratio (group) - statutory NPAT 94.0% 63.8% up 30.2%

Return on equity - statutory NPAT 1.3% 8.9% down 7.6%

Earnings per share – statutory NPAT 6.78c 49.14c down 86.2%

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Operating Expenses

11

General & Administrative expenses are analysed further in the following graph.

2013 'cash earnings' expenses exclude the adjustments to expenses (as disclosed on page 8).

-

10

20

30

40

50

60

2011 2012 2013 2013 'Cash Earnings'

19.9 22.8

35.0

21.2

15.7 17.0

17.4

17.4

1.8

1.7

1.5

1.5 2.3

2.5

2.5

2.5 0.2

0.4

2.4

2.4

$m

OPERATING EXPENSES

General & Administration Employee benefits Depreciation & Amortisation Occupancy Bad and doubtful debts

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General & Administration Expenses

12

Underwriting (MRM) expenses include the claims expense and provisions set aside in the wholly owned

insurance captive Mortgage Risk Management Pty Ltd.

Other Expenses include marketing, broker’s fees, securitisation fees, IT expenses, telephone and office

administration.

2013 'cash earnings' expenses exclude the adjustments to expenses (as disclosed on page 8).

-

5

10

15

20

25

30

35

40

2011 2012 2013 2013 'Cash Earnings'

8.8 8.8 10.1 8.1

0.0 0.0

7.4

0.0

7.9 9.0

8.7

7.5

0.4 0.3

0.1

0.1

2.8 4.7

8.7

5.5

$m

ANALYSIS OF GENERAL & ADMINISTRATION EXPENSES

Fees and commissions FTS impairment Other Employee entitlements Underwriting (MRM)

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Mortgage Risk Management Pty Ltd

13

Total claims per underwriting year indicates the year in which the loan was funded and the policy written for

all claims in MRM up to 30 June 2013.

No new business was written in MRM from August 2012.

-

0.5

1.0

1.5

2.0

2.5

3.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1.0

2.2 2.0 1.9

2.9

0.9

0.4

- - -

$m

TOTAL CLAIMS PER UNDERWRITING YEAR (year policy written)

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Mortgage Risk Management Pty Ltd

14

The 'actual' claims (dark blue) represent the payments for actual claims made on bad debts in the financial year.

The 'expected' claims (light blue) represent the forecast claims in the next 4 years based on mortgagees in

possession, arrears on past due loans and arrears on 'hardship' accounts.

MRM has $11.4m in provisions set aside at 30 June 2013 in anticipation of the claims of $8.9m over the next 4

years and for additional loans in arrears which may arise in that period.

-

1.0

2.0

3.0

4.0

5.0

6.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0.7 1.2

0.7 1.2

3.5

2.5

5.4

1.5 1.2

0.8

$m Total claims paid

Actual Expected (provided for as at 30 June 2013)

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Summary & Outlook

15

A tough 2012/13 but some “Green Shoots”

Margin management to continue

Continue to improve capability and delivery of core business

Broker business improving in consideration and quality of deals

Business banking on track for commencement 31/10/13

Very well provided for the future with tough decisions made

Economic conditions and confidence levels remain uncertain. Slowdown in mining having some impact in busy areas of Mackay and Gladstone.

Strategic plan is in place and continued delivery over 2013/14 will improve WBA “fitness” and performance for the future.

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Strategic Plan

THE BEST PEOPLE

Right attitude, skills training, desire to win

TARGETS AND PERFORMANCE MANAGEMENT ACROSS THE ORGANISATION

KPI’s across the organisation, remuneration linked to performance

LEADER IN RETAIL BANKING AND HOME LOAN GROWTH IN WBA

Outperform in our home market, win more customers, be dynamic

IMPROVE BROKER LOAN FLOW AND MANAGEMENT

Dedicated channel with BDM’s, more flow and better quality

LEAD IN TECHNOLOGY SOLUTIONS FOR CUSTOMERS

Leader in our class, innovative, make it easier for our customers

COMMENCE BUSINESS BANKING

Quickly build traction in SME Banking, win quality new business in our core market

MARKETING AND PRODUCT ALIGNMENT TO CHANNEL NEEDS

Support business channels with advertising and product support. Define WBA

TIGHTEN OUR RISK AND COMPLIANCE CULTURE

Risk is everyone’s responsibility, strengthen risk team, strengthen framework

16

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Strategic Plan

Leadership & Culture Restructure of the leadership team to align role responsibilities, address current performance challenges, compliance/risk challenges and to enable improved productivity across the organisation.

Core Business Improving the skills, capability and accountability of the Sales and Distribution team (Retail network) as a priority to lift both financial performance and customer experience. Training, performance management (including KPI setting) and recruitment of improved talent are key areas of focus.

Broker & 3rd Party Better defining, managing and growing home lending via the Broker and Mortgage Alliance introducers to ensure growth at or above market. The previous approach of local lenders working with local brokers is not effective given the national model that main aggregators operate.

Business Banking Introducing the new segment of Business Banking with a staged approach of July-October 2013 Build Phase and November 2013 Origination phase. The new channel will provide both growth opportunity as well as revenue diversification. The model will target SME customers primarily in the Wide Bay core catchment area.

Support Supporting the Business Channels via Product, Marketing, Technology, Risk, Operations, Human Resources and Infrastructure improvement. The organisational alignment is focused on supporting the Revenue Businesses (Sales & Distribution, 3rd Party and Business Banking) to attract more customers and provide them with the full services and products they require in a responsible and sustainable way.

Productivity Improving the back office service delivery and the frontline sales per FTE outcomes. A focus on reducing paperwork and processes via technology and reducing costs.

Risk A structured approach to Risk Management including dynamic provisioning, centralised collection and arrears management Risk Management approach to MRM.

17

The 3 year Strategic Plan sets the agenda for the organisation over the medium term. It is a plan focused on the core business. It

seeks to address and improve the current and future business performance of WBA via:

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Important Notices

18

This Presentation has been prepared for Wide Bay Australia Ltd ABN 40 087 652 060, Australian Financial Services

and Australian Credit Licence Number 239686, ASX Code WBB. The information is current as at 4 September 2013.

Financial amounts

All dollar values are in Australian dollars (A$) and financial data is presented as at the date stated. Pro-forma

financial information and past information provided in this Presentation is for illustrative purposes only and is not

represented as being indicative of WBB’s views on its future financial condition and/or performance. Past

performance, including past trading or share price performance, of WBB cannot be relied upon as an indicator of

(and provides no guidance as to) future WBB performance including future trading or share price performance.

Future performance

This Presentation contains certain “forward looking statements”. Forward looking statements can generally be

identified by the use of forward looking words such as “anticipate”, “believe”, “expect”, “project”, “forecast”,

“estimate”, “likely”, “intend”, “should”, “will”, “could”, “may”, “target”, “plan” and other similar expressions within

the meaning of securities laws of applicable jurisdictions. The forward looking statements contained in this

Presentation involve known and unknown risks and uncertainties and other factors, many of which are beyond the

control of WBB, and may involve significant elements of subjective judgment as to future events which may or may

not be correct.

There can be no assurance that actual outcomes will not differ materially from these forward-looking statements.

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