1

MEDIA & BROKER PRESENTATION

27 February 2009

Interim Results to 31 December 2008

2

AGENDA

• PGC Performance and Highlights

• Sam Maling (Chairman)

• Individual Business Performance

• Brian Jolliffe (Managing Director) and Alan Williams (Chief Financial Officer)

• Financials

• Alan Williams

• Summary and Outlook

• Sam Maling

• Questions

3

PGC PERFORMANCE AND HIGHLIGHTS

4

HALF YEAR HIGHLIGHTS

• Businesses record solid performances in difficult times

• MARAC net profit before tax of $11.0m

• Perpetual Trust net profit before tax of $2.4m

• PGG Wrightson net operating profit before tax of $21.0m, but loss after “one-offs” result in a loss to PGC of ($6.9m)

• PGC fully commits a $25.0m underwrite to MARAC for property loans

• NPAT is a $17.0m loss

• Interim Dividend of 5 cents per share declared

5

DIVIDEND

• Fully imputed Interim dividend of 5 cps (last year 10 cps)

Dividend per share(cents per share)

8 9 105

232120

0

5

10

15

20

25

2006 2007 2008 2009

Interim Final Special

6

INDIVIDUAL BUSINESSES PERFORMANCE

Brian Jolliffe

7

MARAC’S BUSINESS PERFORMANCE

8

MARAC

• Net profit after tax $7.8m

• Finance receivables down slightly to $1.366bn

• New business opportunities still evident in the current market

• Arrears and Impaired Asset expense rises

• Funding position and liquidity strengthened

(Includes MARAC Finance Limited, MARAC Insurance Limited, MARAC Securities Limited, MARAC Investments Limited and Nissan Finance New Zealand Limited)

9

NET PROFIT AFTER TAX

• $7.8m down 45%

• Net operating income down just 7%

• Operating costs below last year

• Impaired asset expense major contributor to reduced result

Net Profit After Tax($000's)

7,785

27,915 26,252

24,173

0

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 2009

First Half Second Half

10

NET OPERATING INCOME

• Down just 7%

– Smaller balance sheet

– Reduced fee revenue

Net Operating Income($000's)

58,669 62,880

73,455

33,670

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2006 2007 2008 2009

First Half Second Half

36,132

11

FINANCE RECEIVABLES

• $1.366bn down 4% in the six months

Total Finance Receivables($m's)

1,1661,325

1,423 1,366

0

400

800

1,200

1,600

Jun

2006

Jun

2007

Jun

2008

Dec

2008

12

FINANCE RECEIVABLES

• Receivables mix similar to June 2008

• All segments show small reductions

• Reflects focus on existing customers and credit

000

100

200

300

400

500

600

700

800

900

1000

Jun 2006 Jun 2007 Jun 2008 Dec 2008

Motor Leasing Marine Commercial Property Ascend

Consumer Business

Total Finance Receivables($m’s)

13

CONSUMER DIVISION

• Sales of motor vehicles are sharply lower than last year (new car registrations down 13%, imported used down 34%)

• Some key competitors have exited the market

• Greater share of a smaller market now occurring

• Increasing car prices benefiting lease fleet

(Includes Motor Vehicle, Leasing, Marine & Leisure and Insurance)

Strategy

• Wider business opportunity from “new” dealers being solidified

• Credit focus continues

• Improved interest margin

14

BUSINESS DIVISION

• Clear signs of slowdown evidenced in the small business market

• Good opportunities are still being seen but we remain cautious

• Property is all about the market risk

(Includes Commercial, Plant & Equipment, Property Finance and Ascend Finance Division)

Strategy

• We remain focused on existing customers and new quality opportunities

• Credit focus continues

• Improved interest margin

15

PROPERTY DIVISION

• Investment loans total $110m and over a broad spectrum of properties

• ‘Development Loans’ total $250m or 19% of MARAC’s balance sheet

• 88% are secured by first mortgage

• Little new business has been undertaken

• Limited development risk remains

• PGC has provided an underwrite of $25m for impaired loans

• Market risk and uncertainty is the challenge

Total property loans at 31 December 2008 of $360m

16

CREDIT ARREARS – ALL DIVISIONS

• Deterioration reflects economic conditions

• Normal post Christmas increase is evident

• Flows through to increased provisioning

(Installment Loans)

MARAC Installment Arrears

($m's/%)

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-080.00%

0.20%

0.40%

0.60%

0.80%

1.00%

Total Arrears % (Rt Axis) 0.5%

0.68%

0.50%

17

IMPAIRED ASSET EXPENSES

• First half impaired asset expense of $9.3m

• Excluding property (nil in all prior periods) result is $3.0m

• Provision increases driven by arrears and risk grade changes

(Bad debts, recoveries, provisions)

Impaired Assets Expense(first half $000's)

3,0401,753

6591,243

6,297

0

2,000

4,000

6,000

8,000

10,000

Dec-05 Dec-06 Dec-07 Dec-08

Non Property Property

9,337

18

FUNDING

Alan Williams

19

FUNDING ENVIRONMENT

• Significant changes in the interest rate environment

• MARAC builds liquidity to buffer uncertainty in economic environment

• Government Guarantee produces significant change to the New Zealand funding environment

• Outcomes for MARAC:

• Further funding diversification

• Strong funding inflows

• Increased retail investment book

• Excellent cash reserves

20

RETAIL FUNDING GROWTH

• Retail bond oversubscribed

• Retail debenture book increases $133m in the six months

• Government Guarantee and S&P rating assists growth

• Reinvestment rates at historical highs

• MARAC PIE products launched

Retail Funds

200

300

400

500

600

700

800

Jun-07 Sep-07Dec-07 Mar-08 Jun-08 Sep-08Dec-08

($m

's)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Reinvestment Rates

Retail Debenture Book

21

WHOLESALE BANK FUNDING

• Utilisation reduced following growth in retail base

• Syndicate with 5 strongest NZ banks

• Pricing locked for next 1-2 years

Wholesale Facilities utilised from Banks($m's)

442

286

392

447413

363

232

0

100

200

300

400

500

Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08

Secu

riti

sati

on

22

Funding Sources($m's)

Retail: 690

Bank: 232

Securitisation: 202

Bond: 104Undrawn Facilities: 352

FUNDING SOURCES(31 December 2008)

• Retail growth provided increased liquidity

• Securitisation lower due to limited commercial paper markets

• New source of long term funding from 5 year bond

• Cash and term PIE attracts new investors

Strategy

• Lengthen duration well beyond Government Guarantee period

• Rebalancing of funding mix

23

LIQUIDITY

MARAC’s drive to increase liquidity

• Planned processes

• Provides increased comfort for investors

• Gives MARAC options in regards to lending opportunities and changes in funding mix

• Now in excess of $400m

Liquidity($m's)

87114

164

352

0

50

100

150

200

250

300

350

400

Dec-07 Mar-08 Jun-08 Dec-08

24

MARAC SUMMARY

Brian Jolliffe

25

MARAC CURRENT BUSINESS POSITION AND OUTLOOK

• Current market is unlikely to improve in the second half

• Some segments show clear opportunities for growth

• Modest balance sheet growth expected

• Credit remains our focus across all ledgers

• Funding will continue to concentrate on longer dated maturities

• Reduced funding costs will lead to reduced lending rates but expected better interest margin overall

Outlook - Second half trading result in line with the first half expected

26

PERPETUAL TRUST

27

PERPETUAL

• Net profit after tax of $1.6m down 8% on last year

• Revenue down 6% over same period last year

– Corporate revenues up

– Managed Funds and Personal Revenues down

28

PERSONAL WEALTH MANAGEMENT AND ADVICE

• Down just 4%

• Trust and Investment Client base growing but offset by a decline in:

- Property values

- Investment values

Personal Client Revenue($000's)

7,0187,551

8,721

4,186

-

2,000

4,000

6,000

8,000

10,000

2006 2007 2008 2009

4,356

29

MANAGED FUNDS

• Affected by “market perceptions”

• Especially around Mortgage Funds

• Perpetual’s Mortgage Fund:

- Remains actively managed

- Good liquidity and asset

quality (no arrears)

- Size of fund reduced

• Other funds steady

Funds Under Management($m's)

298

328

307

257

200

250

300

350

2006 2007 2008 2009

30

CORPORATE TRUST

• Revenue up 10%

• Spread from new clients, existing clients and special fees

Corporate Trust Revenue

($000's)

3,592 3,7734,319

2,270

0

1,000

2,000

3,000

4,000

5,000

2006 2007 2008 2009

Interim Final

2,056

31

PERPETUAL BUSINESS SUMMARY AND OUTLOOK

Current Business Position

• Personal client numbers are continuing to increase but asset values are reducing

• Managed funds are steady, except the mortgage fund

• Corporate Trust is growing both new clients and new issues

Outlook

• A second half expected in line with the first half

32

PGG WRIGHTSON

33

PGG WRIGHTSON

PGG Wrightson announced their interim results yesterday

• NOPBT was $22.1m, an increase of 32% compared to last year

• Non trading items affected bottom line result – Loss $32.8m

• Market guidance for full year was reaffirmed: $46-51m

• Strategies adjusted to reflect changing world market

• Debt facilities from banks refinanced

34

FINANCIALS

Alan Williams

35

PGC FINANCIALS

• Financial Performance Summary

• Balance sheet remains strong

• IFRS impact

• Underwrite for MARAC

36

Net Profit after Tax ($000's)

7,785

1,647

(6,949)

(2,027)

(17,500)

-20,000

-15,000

-10,000

-5,000

-

5,000

10,000

MARAC Perpetual

Trust

PGG

Wrightson

PGC Costs

“One Off”Underwrite

FINANCIAL PERFORMANCE SUMMARY

• Net after tax loss of $17.0m, last year NPAT of $22.1m

• Larger abnormals in PGG Wrightson than anticipated

• PGC underwrite provided to MARAC

(including abnormals and one offs)

37

BALANCE SHEET

• Balance sheet marginally smaller but structure is unchanged from previous periods

• Receivables and investments fully provisioned and tested for impairment

• Increase in derivative and deferred tax assets

• Strong cash holdings and liquidity sound

PGC Balance Sheet

Dec-08 Jun-08 Dec-07

Cash 29 8 14

Finance receivables 1,330 1,419 1,473

Investment in PGG Wrightson 86 101 96

Other Assets 69 44 40

Total Assets 1,514 1,572 1,623

Borrowings 1,249 1,276 1,340

Other Liabilities 40 34 32

Total Liabilities 1,289 1,310 1,372

Total Equity 225 262 251

38

IFRS IMPACT

• Impairment testing of all investments completed by PGC

• Methodology for impairment provisioning

• Dynamic

• NPV of expected future cashflows

• Valuation of derivatives

• PGW non cash items

• Write-down of NZ Farming Systems Uruguay

• Mark to market of contracts and defined benefit super scheme

• Provision for SFF

39

UNDERWRITE

• PGC has provided an underwrite of $25m for potentially impaired loans at MARAC

• Shows support from the parent during market uncertainty

• Only $13m has been specifically allocated

• $12m is held as an “unallocated collective provision” by PGC

• Uncertainty created by lack of true market in the property segment

40

SUMMARY AND OUTLOOK

Sam Maling

41

SUMMARY AND OUTLOOKMARAC

• Consumer securing greater market share from a smaller market

• Business outlook is mixed with reduced demand in some segments and continuing property uncertainty

Perpetual

• Growth in personal client numbers and corporate opportunities offset by reduced asset values

PGG Wrightson

• Excellent trading result delivered

• Market guidance separately issued in respect to outlook

OVERALL OUTLOOK – Trading result in second half from MARAC and

Perpetual expected to be in line with first half

42

MEDIA & BROKER PRESENTATION

27 February 2009

Interim Results to 31 December 2008