HGH - Heartland Group Holdings

[Longhaul]

Asking for a bit of help for a newbie...

Can anyone explain how the June 2013 ROE of -6.5% is calculated as per slide 5 of the recent investor presentation?

(My own calculation was ridiculously different!)

Thanks

[Snow Leopard]

Asking for a bit of help for a newbie...

Can anyone explain how the June 2013 ROE of -6.5% is calculated as per slide 5 of the recent investor presentation?

(My own calculation was ridiculously different!)

Thanks

Normalised ROE = Normalised NPAT / Equity.

6.5% = $24.3M / $372M (approx)

Normalised NPAT is what they would have earned if they had not impaired all that property & RECL fee)

Does that help?

Best Wishes
Paper Tiger

[Longhaul]

Normalised ROE = Normalised NPAT / Equity.

6.5% = $24.3M / $372M (approx)

Thank you for explaining that PT.

Another minor question, in the 2013 Annual Report total equity at 30 June 2013 is $370.5m. Is there a reason your figure of $372m (approx) above is different?

Sorry one more silly question, in the Annual Report there is share equity for both Company and Group. What is each figure referring to and which one should I be looking at?

[winner69]

Thank you for explaining that PT.

Another minor question, in the 2013 Annual Report total equity at 30 June 2013 is $370.5m. Is there a reason your figure of $372m (approx) above is different?

Sorry one more silly question, in the Annual Report there is share equity for both Company and Group. What is each figure referring to and which one should I be looking at?

As PT had pointed out on numerous occasions most things are in the Annual/Interim Reports

In response to your query re Company and Group here is Note 1 -

Note 1-.
Reporting entity

The financial statements presented are the consolidated financial statements comprising Heartland New Zealand Limited (Company) and its subsidiaries and joint venture (Group).

The Company, through a subsidiary, owns 100% of Heartland Bank Limited (Bank). The Bank was formerly known as Heartland Building Society. Heartland Building Society was established in January 2011, as a result of the merger of Canterbury Building Society (CBS) and Southern Cross Building Society (SCBS).

The Bank owns 100% of MARAC Finance Limited (MARAC) and PGG Wrightson Finance Limited (PWF). The Company owns 100% of Heartland Financial Services Limited (HFSL) which holds a 50% joint venture interest in MARAC JV Holdings Limited (MJV) with the New Zealand Automobile Association. Refer to Note 5 - Significant subsidiaries.

The Bank acquired PWF on 31 August 2011, as a result comparatives for the year ended 30 June 2012 only include the PWF result from the date of acquisition.

The Group includes Heartland ABCP Trust 1 and CBS Warehouse A Trust (collectively the Trusts), which are special purpose vehicles holding securitised loans purchased from MARAC and the Bank.

All entities within the Group offer financial services or are special purpose entities. The Group operates and is domiciled in New Zealand. The registered office address is 75 Riccarton Road, Christchurch.


OK clear as mud now?

The short answer is always look at the Group figures

[Snow Leopard]

Thank you for explaining that PT.

Another minor question, in the 2013 Annual Report total equity at 30 June 2013 is $370.5m. Is there a reason your figure of $372m (approx) above is different?

Sorry one more silly question, in the Annual Report there is share equity for both Company and Group. What is each figure referring to and which one should I be looking at?

Q2 seems to have been satisfactorily answered by winner69.

Q1:

A1: $372M approx is approximately $370.5M

A2: $24.3M / $370.5M = 6.6% rounded to 1 decimal place (6.57% to 2 dp) So they:

A2.1: Forgot to round it up

A2.2: Had a different figure for Equity calculated by:

A2.2.1: taking the average of the equity at beginning and end of the year

A2.2.2: restated the equity like they restated the $24.3M which was $24.4M in the Annual report which was because:

A2.2.2.1: I will stop now

So I thought I would use an approx figure that looked right-ish, wish I had not now

Best Wishes
Paper Tiger

[percy]

Hi there holders ... Is there anyone out there NOT applying for some or the full 15k worth? If so, why not?

I have not decided what to do as yet.I have a rather large holding [for me] and will be receiving shares in lieu of dividend.
My wife will receive cash dividend.
Why I have not decided is because I get sick of applying for large amounts of shares and ending up with a small amount.It means taking money off deposit and tying it up for a few weeks.
With the HNZ issue only being for $5mil I doubt whether I would get more than $500 to $1,000 worth.
May just apply for the minimum $2,500 for wife and self.

[vorno]

Hi there holders ... Is there anyone out there NOT applying for some or the full 15k worth? If so, why not?

Well, apart from not having enough money I haven't received an invitation to do so. No forms received, nothing.

[percy]

Well, apart from not having enough money I haven't received an invitation to do so. No forms received, nothing.

If you don't receive them in today's mail and want to apply for the SPP I think you should get in touch with Link Market Services
phone [09] 375 5998.

[iceman]

Hi there holders ... Is there anyone out there NOT applying for some or the full 15k worth? If so, why not?

Yes me for 2 reasons. HNZ is already above the weighting in my portfolio that I want any stock to be and I have been using all spare cash to accumulate more SUM recently.
But I find the offer enticing so will apply for $5-7k just to be in !

[Harvey Specter]

Will scaling be proportional. ie. if 10 times oversubscribed, if you applied for $15,000, you will get $1,500 but if you apply for the $2,500 minimum, you only get $250 worth.

Or is applying for a smaller amount likely to give you a better proportional result.