Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (May 2006)
12 slides from Westpac Banking's debt investor presentation, May 11, 2006
Slide 1: Westpac Trust Preferred Securities
AMfestpac Australia’s First Bank Westpac Trust Preferred Securities Curt Zuber, Group Treasurer Chris Bannister, Head of Global Funding and Capital Management May 2006 Joint Lead Managers Deutsche Banic oluine Investment ore re) 3 UB imesiment — WllMestpac Australia’s Flest Bank Disclaimer This pres
Slide 2: Offer overview
AMfestpac Australia’s First Bank Offer overview Offer summary | Westpac Funds Management Limited as responsible entity f the Westpac TPS Trust $100.per.Westpac TPS on-cumulative, quarterly, floating rate Distributions— xpected to be fully franked—subject to Distribution xpected to be listed on ASX x
Slide 3: Offer summary and structure overview
Offer summary Automatically Exchange into Westpac Preference Shares _| on 30 September. 2055—unless Redeemed, Converted or Exchanged earlier 30 June 2016—-the Initial Margin will increase by a one time step-up of 1.00% per.annum Wesipac can initiate Redemption for.cash (subject to any required APRA
Slide 4: Indicative timetable
Indicative timetable “Announcement of Westpac TPS Offer.and lodgement of, the PDS with ASIC 11. May 2006 Syndicate Broker & Institutional bookbuild 47 and 18 May 2006. Opening date and Initial Margin announced? 19 May 2006 Closing date for Securityholder Offer 5.00pm 13 June 2006 Closing date for Br
Slide 5: A solid first half performance
AMfestpac Australia’s First Bank Westpac Banking Corporation A solid first half performance AHO5 1H06 % Change Cash earnings $1,344m $1,511m up.12% Cash ROE 22.0% 23.0% up.100 bps Net profit after tax $1,261m $1,469m up.16% Net interest margin 244% 2.40% down 4 bps Fully franked dividend 49c 56c up
Slide 6: Consistent growth and returns
Consistent growth and returns Earnings and returns : Cents : we 3 AGAA A-IF! r 100 WZ Cash earnings per share (LHS}* GAAP... RS : 30. 90 4 =o ROE (RHS) * rp 25 80 4 70.4 r 20 60 5 504 ee) i j r 45 40 4 r 40 30 5 20-4 : ° r § 10 5 07 a) s s 3 8 8 8 8 3s 3 3 8 8 x= = x = x= x= x x= x = x x N -~ ~ ” in
Slide 7: Asset quality remains positive
Asset quality remains positive Categories of stressed exposures as a % of total commitments (%} . 4.8% ponnsesnesc ornare cence ccecensec cscs OWatchiist & substandard @ 90 days past due well secured B impaired 1% P-] fH 1.2%. 7 10% 08% - 0.6% 7 04% 7 0.2% 7 0.0%, 2001 ~ 2002 ©2003 ° 2004 2005 1HO6
Slide 8: Strong capital generation
Strong capital generation + $580m in capital generated over half * Capital ratios above target ranges at 31 March 06: - ACE ratio of 5.1% - Tier 1 ratio of 6.8% * Capital levels will remain within target ranges even after the APRA changes in July 2006 + We are still discussing potential transition a
Slide 9: Key terms of Westpac TPS
AMfestpac Australia’s First Bank Key terms of Westpac TPS 18 Summary termsheet Westpac Funds Management Limited as responsible entity of the Westpac TPS Trust Approximately A$500m—with the ability to raise more or less A$100 per Westpac TPS | 1 Non-cumulative, quarterly, floating rate Distributions-
Slide 10: Distributions
19 Distributions + Distributions are quarterly, non-cumulative, based on a floating rate and expected to be fully franked + Distributions are subject to the Distribution Payment Test + Distributions are scheduled to be paid quarterly in arrears on 31 March, 30 June, 30 September, and 31 December (th
Slide 11: Exchange
Exchange + Westpac TPS will automatically Exchange into Westpac Preference Shares upon the occurrence of an Automatic Exchange Event. This occurs in the limited circumstances of: ~ an Event of Default « a Liquidation Event occurs in relation to Westpac; « Westpac ceases or suspends conduct of all it
Slide 12: Contacts
23 Contacts Deutsche Bank, AG ee : Grant Bush - Debt Capital Markets « +.{02) 8258 2657 Guy Fergusson - Equity Capital Markets ~ (02) 8258 1701 Goldman Sachs JBWere Pty Ltd ....; Anthony Miller - Debt Capital Markets - (02) 9320 1225 ~.. : coe --| Rob Penney - Equity Capital Markets - (02) 9320 1319
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