Investor Presentaiton

Commercial Property portfolio " The Dec 16 portfolio total committed exposure (TCE) has shown minor growth of 0.67% since FY16 and represents 6.67% ($7.3b) of Total TCE Independent registered panel valuations are obtained on drawdown, and every 3 years thereafter (or earlier if market conditions dictate). Internal specialist property valuation input is also obtained for new lending > $10m Property development exposure of $1435m as at 31 Dec 16 represents 1.31% of total TCE. Development / investment ratio has shifted from 19.65%/80.35% in FY16 to 19.57%/80.43% as at 31 Dec 16 Development underwriting standards restrict the max loan amount to the lower of: 75% (loan to development cost ratio), or 65% (loan to value ratio on completion). No exposure to Auckland CBD apartment developments as at 31 Dec 16 Market segment splits are consistent with population demographic. Retail sector concentration is via Listed Property Trusts and exposure to large shopping precincts WNZL is not currently experiencing any delay or settlement defaults by purchasers of apartments/residential houses Commercial Property by Market Segment Retail, 19.0% Residential, 18.0% Other, 4.5% Industrial, 12.3% Commercial, 46.3% Commercial Property by Booking office South Island Wellington , 8.7% , 13.4% Auckland ,77.9% 33

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