Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Bendigo Bank — Shareholder Meeting (October 2004)
95 slides from Bendigo & Adelaide Bank's shareholder meeting presentation, Oct 25, 2004
Slide 1: 139th Annual General Meeting
Growing together Supporting communities, sharing success 139th Annual General Meeting 25 October 2004 © Bendigo Bank
Slide 2: Welcome
Growing together Supporting communities, sharing success Welcome Richard A. Guy OAM Chairman © Bendigo Bank
Slide 3: Bendigo Bank Directors
Growing together Supporting communities, sharing success Bendigo Bank Directors Rob Hunt Jenny Don Dawson Erskine © Bendigo Bank
Slide 4: Bendigo Bank Directors
Growing together Supporting communities, sharing success Bendigo Bank Directors Robert Terry Kevin Johanson O'Dwyer Roache © Bendigo Bank
Slide 5: Quorum
Growing together Supporting communities, sharing success Quorum David Oataway Company Secretary © Bendigo Bank
Slide 6: Proxies
Growing together Supporting communities, sharing success Proxies Richard A. Guy OAM Chairman © Bendigo Bank
Slide 7: Apologies
Growing together Supporting communities, sharing success Apologies Richard A. Guy OAM Chairman © Bendigo Bank
Slide 8: Notice of Meeting
Growing together Supporting communities, sharing success Notice of Meeting Richard A. Guy OAM Chairman © Bendigo Bank
Slide 9: Minutes
Growing together Supporting communities, sharing success Minutes Richard A. Guy OAM Chairman © Bendigo Bank
Slide 10: Annual Financial Report
Annual Financial Report (Item 1 on Agenda) The Annual Financial Report for 2003 be taken as received. Growing together Supporting communities, sharing success © Bendigo Bank
Slide 11: Chairman's address
Growing together Supporting communities, sharing success Chairman’s address Richard A. Guy OAM Chairman © Bendigo Bank
Slide 12: Introductory remarks
Growing together Supporting communities, sharing success Introductory remarks F2004 results = °° £4 Future prospects © Bendigo Bank
Slide 13: Community Enterprise Foundation
Growing together Supporting communities, sharing success Community Enterprise Foundation © Bendigo Bank
Slide 14: Community Enterprise Foundation
Community Enterprise Foundation foundation tal We've made it very simple todo Range of donors “something for your community Supporting local communities Growing pool of funds cammunityenterprise Growing together Supporting communities, sharing success © Bendigo Bank
Slide 15: Successful customers and successful communities
Growing together Supporting communities, sharing success Growing together ‘Successful customers and successful communities create a successful bank - in that order’ © Bendigo Bank
Slide 16: Revenues
Growing together Supporting communities, sharing success Growing revenues
Slide 17: Operating profit after tax
Operating profit after tax A$ Millions 90 80 70 60 50 40 Growing together Supporting communities, sharing success
Slide 18: Strategic shareholdings
Strategic shareholdings The Bank has taken a strategic stakeholding in lIOOF _— ' Bendigo Bank was a ¢ foundation shareholder of Cashcard Australia Growing together Supporting communities, sharing success © Bendigo Bank
Slide 19: Operating profit after tax
Growing together Supporting communities, sharing success Operating profit after tax Percentage increase on previous year 2001 = 57% 2002 = 47% 2003 = 21% 2004 = 35%* * Normalised = 24% © Bendigo Bank
Slide 20: Queensland a new strength
Growing together Supporting communities, sharing success Queensland a new strength Revitalised branches and Loans Centre Added new skills Profit contribution growing strongly John Goddard (left) oversees work on the FABS building © Bendigo Bank
Slide 21: A growing NSW network
Growing together Supporting communities, sharing success A growing NSW network 37 branches now open New branches planned © Bendigo Bank
Slide 22: Elders Rural Bank
Growing together Supporting communities, sharing success Elders Rural Bank 15% profit increase Won investment grade rating © Bendigo Bank
Slide 23: Tasmanian Banking Services
Tasmanian Banking Services 53% increase in business Now contributing profits to Bendigo Bank Growing together Supporting communities, sharing success © Bendigo Bank
Slide 24: Victorian Securities
Growing together Supporting communities, sharing success Victorian Securities > A community based “Host? company 55% increase in contribution Increased commitment to Ballarat © Bendigo Bank
Slide 25: Performance improvements
Growing together Supporting communities, sharing success Performance improvements © Bendigo Bank
Slide 26: Return on equity
Return on equity ON F&F Dw Growing together Supporting communities, sharing success
Slide 27: Earnings per share
Growing together Supporting communities, sharing success Earnings per share Cents 70 60 50 40
Slide 28: Efficiency ratio
Growing together Supporting communities, sharing success Efficiency ratio (operating expenses/income)
Slide 29: Financial Services Reform
Financial Services Reform We supported reform covering managed investments and advice No evidence that customers have benefitted High cost of compliance Growing together Supporting communities, sharing success © Bendigo Bank
Slide 30: Capital adequacy
Capital adequacy % 14 12) 11.69 10.57 Growing together Supporting communities, sharing success
Slide 31: Total assets
Growing together Supporting communities, sharing success Total assets AS Millions 44,000 12,000 10,000 a 8,000 6,000 4,000 2,000 0
Slide 32: Total dividends
Growing together Supporting communities, sharing success Total dividends Cents 2002 2003 2004 © Bendigo Bank
Slide 33: Bendigo Bank share price June 2000 - October 2004
ric Bendigo Bank share price 1 June 2000 - 13 October 2004 See een ttt et tH NNNNNNMMOMNHMNYMYHNII FT SoOOG5C COCO OoO Oooo OC OOO OOO OOOO ecemtong se © MH OQOH CMH EOLOOK CMH ONH SE a8 @ a B38 6 a 38 o 2. a3 8 0 a SZ@coAPeszdoRPeRZoRheRZseA8eaer Date Aug 04 - z oO S <) Growing together Supporting
Slide 34: Sustainable returns
Growing together Supporting communities, sharing success Sustainable returns Ranked 28th in sustainable shareholder returns (Bulletin magazine) Market capitalisation is growing © Bendigo Bank
Slide 35: Company prospects
Growing together Supporting communities, sharing success Company prospects © Bendigo Bank
Slide 36: Lending approvals
Lending approvals A$ Millions 6,000 5,000 4,000 3,000 2,000 1,000 Growing together Supporting communities, sharing success
Slide 37: Asset quality
Growing together Supporting communities, sharing success Asset quality (Impaired loans / total assets) © Bendigo Bank
Slide 38: Net interest margin
Growing together Supporting communities, sharing success Net interest margin 2002 2003 2004 © Bendigo Bank
Slide 39: Sharing responsibility and rewards
Growing together Supporting communities, sharing success Sharing responsibility and rewards a The Bank shares revenue with community companies, which pay the branch operating costs © Bendigo Bank
Slide 40: A cautious outlook ...
Growing together Supporting communities, sharing success A cautious outlook ... ... but there are good reasons to be optimistic © Bendigo Bank
Slide 41: Growing branch network
oa z ah f Bran Growing branch network 300 275 250 225 200 175 150 125 100 1998 1999 179 215 2002 247 2003 276 Growing together Supporting communities, sharing success
Slide 42: The premium community model
Growing together Supporting communities, sharing success The premium community model Elmore Community Bank® branch, 3 December 2003 © Bendigo Bank
Slide 43: A reputation for service
Growing together Supporting communities, sharing success A reputation for service A customer satisfaction rating of 94%* (* Nielsen) Fourth-highest company reputation* (* Harris Interactive, 2003) © Bendigo Bank
Slide 44: Customer choice
Customer choice 90% of transactions occur outside the branch Growing together Supporting communities, sharing success © Bendigo Bank
Slide 45: Contributions
Contributions A$ Millions 16 14 12 10 ON ABD @ Growing together Supporting communities, sharing success © Bendigo Bank
Slide 46: Sandhurst Trustees
Growing together Supporting communities, sharing success Sandhurst Trustees Sandhurst is the linchpin of a growing Wealth Solutions business © Bendigo Bank
Slide 47: Funds under management
Funds under management AS$Millions Jun 02 _ dun 03 | Sandhurst Mortgage & Cash Funds 952.0 1,196.2 Sandhurst Industrial Share Fund 153.3. 272.5. Bendigo Superannuation Plan 103.6 1468 General Retirement Plan 53.1. $29 Bendigo Managed Funds nee At) 48 4 Other 59. AS Total 1,283.9 4, 733. 4 2,158.9 Gr
Slide 48: Wealth Solutions
Growing together Supporting communities, sharing success Wealth Solutions Payment structure reviewed ri Focus on customers Strong growth © Bendigo Bank
Slide 49: Strong balance sheet
Growing together Supporting communities, sharing success Strong balance sheet raed Little expense carried forward Strong profit reserves ($120 mil.) i Dee Aiea, © Bendigo Bank
Slide 50: Community benefits
Growing together Supporting communities, sharing success Community benefits $50 mil.inlocal #§# revenue Community grants total $3 mil. Lang Lang funded a $7500 safety path © Bendigo Bank
Slide 51: Community benefits
Growing together Supporting communities, sharing success Community benefits Wentworth renovated its tourist paddlesteamer © Bendigo Bank
Slide 52: Community benefits
Growing together Supporting communities, sharing success Community benefits Young sailors funded by East Gosford & Districts Community Bank® © Bendigo Bank
Slide 53: Communities are seeking out Bendigo initiatives
Growing together Supporting communities, sharing success | Communities are seeking out Bendigo initiatives ‘Initiatives such as Lead On and Community Telco are increasing the attraction of the Bendigo brand’ © Bendigo Bank
Slide 54: Branch network
Growing branch network Company owned 142 Community Bank® 137 Tasmanian Banking Services 7 Total 286 Growing together Supporting communities, sharing success © Bendigo Bank
Slide 55: Competitors re-evaluating
Growing together Supporting communities, sharing success Competitors re-evaluating ‘ANZ U-turn with 80 new branches’ Herald Sun, 9 September 2004 © Bendigo Bank
Slide 56: Competitive market
Growing together Supporting communities, sharing success Competitive market YNational «© pCommonwealthiank Wifestpac St.george i Ad Gade ~~ HSBC €Xp the words toca bank ] NG . citibank ‘O RegionalOne CREDIT UNION © Bendigo Bank
Slide 57: A unique brand
Growing together Supporting communities, sharing success A unique brand Bendigo Bank Our brand has broad appeal © Bendigo Bank
Slide 58: Total customer numbers
Growing together Supporting communities, sharing success Total customer numbers 950,000 900,000 850,000 828,044 800,000 750,000 700,000 650,000 600,000 550,000 500,000 507,402 450,000 400,000} 385,933 350,000 300,000 Q 445,057 1999 2000 2001 2003 2004 © Bendigo Bank
Slide 59: Community Bank growth
Growing together Supporting communities, sharing success Community Bank growth More than 3000 Community Bank® inquiries © Bendigo Bank
Slide 60: Building our relevance
Growing together Supporting communities, sharing success Building our relevance New school fence, Minyip (Vic.) Young drivers training program, Maldon (Vic.) © Bendigo Bank
Slide 61: A distinctive retail bank
Growing together Supporting communities, sharing success A distinctive retail bank Our continued success is based on hard work. © Bendigo Bank
Slide 62: Building for the future
Growing together Supporting communities, sharing success Building for the future Our current head office at Fountain Court © Bendigo Bank
Slide 63: The Lyric Theatre
Growing together Supporting communities, sharing success The Lyric Theatre The remnant facade is set among nondescript modern buildings © Bendigo Bank
Slide 64: Our new head office
Growing together Supporting communities, sharing success Our new head office Wis Oy SNe pias An early artist's impression of the new building. The design is still being finalised. © Bendigo Bank
Slide 65: Docklands, Melbourne
Growing together Supporting communities, sharing success Docklands, Melbourne Leased premises currently under construction © Bendigo Bank
Slide 66: Staff Share Purchase Plan
Staff Share Purchase Plan Staff are our greatest asset The Plan aligns staff and shareholder interests All shareholders benefit Growing together Supporting communities, sharing success © Bendigo Bank
Slide 67: Shareholder Privileges
Shareholder Privileges Available to holders of 500 or more shares Watch for your new offer, coming soon Growing together Supporting communities, sharing success © Bendigo Bank
Slide 68: Vale Norm Bevan
Growing together Supporting communities, sharing success Vale Norm Bevan © Bendigo Bank
Slide 69: A personal thank you
A personal thank you Congratulations to staff A cohesive and functional Board Family support Managing Director’s inspiring leadership Growing together Supporting communities, sharing success © Bendigo Bank
Slide 70: Managing Director's address
Growing together Supporting communities, sharing success Managing Director's address Rob Hunt AM Managing Director © Bendigo Bank
Slide 71: Questions
Growing together Supporting communities, sharing success Questions Richard A. Guy OAM Chairman © Bendigo Bank
Slide 72: Shareholder questions
Shareholder questions Why has the Bank not expensed any costs in respect of the operation of the Staff Share Purchase Plan? What has been the dilutive impact of the Plan on EPS? Is the Bank planning another share top-up? Growing together Supporting communities, sharing success © Bendigo Bank
Slide 73: Election of Directors
Growing together Supporting communities, sharing success Election of Directors (Item 2 on agenda) Moved: That Mr R.A.Guy, who retires from office pursuant to Rule 67 of the Bank’s Constitution and, being eligible, be re-elected as a Director of the Bank. R.A. Guy OAM © Bendigo Bank
Slide 74: Election of Directors
Growing together Supporting communities, sharing success Election of Directors (Item 2 on agenda) Moved: That Mr D.J. Erskine, who retires from office pursuant to Rule 67 of the Bank’s Constitution and, being eligible, be re-elected as a Director of the Bank. D.J. Erskine © Bendigo Bank
Slide 75: Election of Directors
Growing together Supporting communities, sharing success Election of Directors (Item 2 on agenda) Moved: That Mr K.E. Roache, who retires from office pursuant to Rule 67 of the Bank’s Constitution and, being eligible, be re-elected as a Director of the Bank. K.E. Roache © Bendigo Bank
Slide 76: Response on behalf of re-elected Directors
Growing together Supporting communities, sharing success Response on behalf of re-elected Directors K.E. Roache © Bendigo Bank
Slide 77: Special Business
Growing together Supporting communities, sharing success Special Business (Item 5 on Agenda) Issue of Employee Share Ownership Plan © Bendigo Bank
Slide 78: Employee Share Ownership Plan
Employee Share Ownership Plan Current threshold: Offer not to exceed 7.5% of Bank’s total issued shares. ASIC recommended threshold: Offer not to exceed 5% of Bank’s total issued shares. Growing together Supporting communities, sharing success © Bendigo Bank
Slide 79: Employee Share Ownership Plan
Growing together Supporting communities, sharing success Employee Share Ownership Plan Moved: That the maximum percentage of shares that can be issued under the Bendigo Employee Share Ownership Plan from 7.5% to the limite under the Australian Securities & Investment Commission’s Class Order 03/184
Slide 80: Special Business
Growing together Supporting communities, sharing success Special Business (Item 6 on Agenda) Employee Share Ownership Plan Approval of Issues © Bendigo Bank
Slide 81: Employee Share Ownership Plan Approval of Issues
Slide 82: Employee Share Ownership Plan Approval of Issues
Slide 83: Special Business
Slide 84: Issue of shares to Managing Director
Slide 85: Issue of shares to Managing Director
Slide 86: Issue of shares to Managing Director
Slide 87: Issue of shares to Managing Director
Slide 88: Issue of shares to Managing Director
Slide 89: Issue of shares to Managing Director
Slide 90: Issue of shares to Managing Director
Slide 91: Issue of shares to Managing Director
Slide 92: Issue of shares to Managing Director
Slide 93: General business
Slide 94: Close
Slide 95: 139th Annual General Meeting