Full Year 2025 Steadfast Group Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Buncombe - Macquarie Research Ltd - Analyst : Hi, thanks for taking my questions, and congratulations, Stephen on an exceptional career. I might send you off with my first question, if that's okay.

Question: Andrew Buncombe - Macquarie Research Ltd - Analyst : No, I know the answer to that already.

Question: Andrew Buncombe - Macquarie Research Ltd - Analyst : Just in relation to the slide 7. So in the footnote, it has the number of shares. You can see in the middle of the waterfall, the earnings. You've said 3% acquisitions for '26. If you assume that's at a 10 times multiple, it gets you to M&A spend of $90 million. Now that's materially lower than what you've done in previous years. Am I doing that math wrong? What am I missing? Just any color there would be great. Thank you.

Question: Andrew Buncombe - Macquarie Research Ltd - Analyst : Fair enough. The next question is for you, Robert. In relation to slide 36, you've been putting this up for a couple of years now. The nonequity GWP segment that you do not believe is available for acquisition, what is the strategy or what's the future around those brokers and their relationship with the group? Thank you.

Question: Andrew Buncombe - Macquarie Research Ltd - Analyst : Is it okay if I ask Tim and Mark a question?

Question: Andrew Buncombe - Macquarie Research Ltd - Analyst : Understood. Okay, let's start.

Question: Andrew Buncombe - Macquarie Research Ltd - Analyst : Understood. Tim good to chat. Maybe a question for you. How do you think about balancing? Or how do you balance the need for M&A growth in the businesses that you've run while maintaining profitability in the core? Thanks.

Question: Andrew Buncombe - Macquarie Research Ltd - Analyst : Yeah, and then maybe a question for Mark please.

Question: Andrew Buncombe - Macquarie Research Ltd - Analyst : Hey, Mark. Mark, maybe digging into your current experience and previous experience for the next one. How do you think about the conflicts of interest that potentially arise when an insurance broker owns market-leading MGAs? Thanks.

Question: Andrew Buncombe - Macquarie Research Ltd - Analyst : Excellent. Thanks, everyone. Congratulations on the result.

Question: Andrei Stadnik - Morgan Stanley - Analyst : Good afternoon, and Stephen, congratulations on your career to date. If I can ask my first question around fees. I think some of your peers have mentioned that the market sometimes overlooks the ability to drive revenue growth through higher fees. So can you talk a little bit about what options you see on the fee front?

Question: Andrei Stadnik - Morgan Stanley - Analyst : As a quick follow-up on that, is it fair to say that in the last few years, [during hard] pricing, is it fair to say that you held back on fees on average in terms of keeping this flat?

Question: Andrei Stadnik - Morgan Stanley - Analyst : Thank you. But if I can ask a proper second question. Novum, can you talk a little bit about Novum in terms of is it -- does it have an opportunity to become a network of networks in the sense that it is a network in itself, but then you're plugging it into IFC and your global capabilities?

Question: Andrei Stadnik - Morgan Stanley - Analyst : Thank you, Sam. If I can ask a last question. So slide 5, you hinted about upcoming changes to divisional structures for changes to divisional reporting going forward. Can you talk a little bit more about that? What's going to change in FY26?

Question: Siddharth Parameswaran - JPMorgan Chase & Co - Analyst : Good morning, gentlemen, and congrats, Stephen, again. I actually only have two minutes. So I'll be really quick. Just a question on -- just some of the -- one of your peers, I think, commented that their average fee and commission revenue per client is about 10% to 15% below the market. I was just wondering if you do your own benchmarking and whether how you see your fees and commissions per client versus the market and whether there are opportunities for you to increase those. I think your comments were a little vague earlier just on how you see that opportunity.

Question: Siddharth Parameswaran - JPMorgan Chase & Co - Analyst : Sorry, have you done any benchmarking? Have you done any benchmarking in anyway?

Question: Siddharth Parameswaran - JPMorgan Chase & Co - Analyst : Okay. Just one final question, if I can, Robert. Just for you. Obviously, there's a -- the transition Frank O'Halloran has been with you since the start of the listing of Steadfast. Just wanted to -- just maybe just remind us your thoughts on how long you are committed for and also whether this in any way changes your thinking, what were the conversations had of the Board around transition? Usually, the Board and CEO don't leave at the same time. Just what would -- does this extend your tenure at Steadfast, maybe you could just give us some thoughts

Question: Siddharth Parameswaran - JPMorgan Chase & Co - Analyst : Thanks so much, Robert, and thanks so much, Stephen, for your time. Thanks.

Question: Shreyas Patel - UBS Equities - Analyst : Hi, guys. Just two questions from me. Firstly, on the gearing headroom, I think Hannah called out $365 million headroom to borrow at the June 30. Can you give us some indication of where that sits today? Unidentified Company Representative Well, given that we can't really disclose an open consideration given that that's commercially sensitive, giving that out will allow us to -- allow you to guess the consideration for note, so I can't really do that. But as of today's date and also with Novum, we have funded mix of debt facility and free cash flow. So we do have still ample headroom in our debt facility at the moment.

Question: Shreyas Patel - UBS Equities - Analyst : Sure. Second question, I'm just trying to line up I guess, your guidance with some of your FY26 LTI hurdles. And it looks like you only need 4% to 5% EPS growth in FY26 to get 100% best outcome. So just keen to understand -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 29, 2025 / 1:00AM, SDF.AX - Full Year 2025 Steadfast Group Ltd Earnings Call

Question: Shreyas Patel - UBS Equities - Analyst : Is your EPS growth guidance a little too high.

Question: Shreyas Patel - UBS Equities - Analyst : It says it says 11.5%, it says 11.5% over three years to (multiple speakers)

Question: Shreyas Patel - UBS Equities - Analyst : You've had '24 and '25.

Question: Shreyas Patel - UBS Equities - Analyst : All right. Thanks guys.

Question: Shreyas Patel - UBS Equities - Analyst : Right, thanks all.