Westpac Banking Corporation · ASX:WBC
Westpac Banking — Non-Deal Roadshow (March 2007)
20 slides from Westpac Banking's roadshow presentation, Mar 5, 2007
Slide 1: Australia's First Bank
Wifestpac Australia’s First Bank Westpac Banking Corporation Philip Chronican Group Executive Westpac Institutional Bank March 2007 2 Westpac Banking Corporation — at a glance ¢ Australia’s first bank — est. 1817 * Top 50 bank:-globally? * Consistent:earnings growth Cash earings A$3,079 million * St
Slide 2: Consistent solid growth over long term
Consistent solid growth over long term Cash earnings, revenue and expenses ($m) 1,500.5 4,000.5 500 + 0.4 1999 2000 2001... 3,500.) | Tyr CAGR | mm Cash Earnings (LHS) 10% 3,000 5 i | ol Revenue (RHS) 1% 2.500 | —#— Expenses (RHS) 4% 2,000 + 2002. ; 12,000 | 10,000 r 8,000... | 6,000 mont + 4,000 ~
Slide 3: Areas of strategic focus
Areas of strategic focus Group Strategic Themes Feet on the street Investing in growth Productivity improvement Business Unit Strategic Themes Wealth * Capitalise on new opportunities from superannuation reforms Australian retail banking + Deliver profitable market share growth in housing, cards + E
Slide 4: Australian Business Financial Services
Australian Business Financial Services e Business banking became a Westpac total Australian business credit market . on share (%) separate business unit in ms March 2007 3 + 7 . + 12 + Growing business lending just “1 above system 10 9 It — 11 T * Expanding Business Banking SSS SSE SSS SE Be SF capa
Slide 5: New Zealand - consumer banking — slow turnaround
9 New Zealand - consumer banking — slow turnaround * Initiatives are having some impact, in what is expected to be an ongoing restoration process - Improving customer growth and retention ~ Increased share in NZ customer numbers 8000 MW Total Net Gain/oss 6600 4000. 2000 0 -2000 4000 6000 @ Auckland
Slide 6: BT - delivering Wrap and Corporate Super growth
BT - delivering Wrap and Corporate Super growth « Wrap Funds Under Wee PUA (SP). Administration (FUA) up 12% sl in Q1 to $30bn » « BT's platforms No.1 for new 45 business in December Qtr* 10 5 9 — Sep-03 Sap-04 Sep-05 Sap-06 Dec-06 Source: BT * Corporate Super FUA grew 6% Corporate Super FUA ($bn) i
Slide 7: Asia — executing on growth opportunities
Asia — executing on growth opportunities Revenues . Locally booked revenues up 38% in 2006 ~~ Footprint + Repositioned geographic footprint and seeking to expand activities into India and China. Applications submitted in late 2006 to open branch in Shanghai and representative office in Mumbai (Oe le
Slide 8: Private Equity
16 Private Equity * Core customers increasingly involved in private equity transactions. We underwrite debt for investee companies of private equity funds + Westpac supports private equity transactions that are appropriately structured and bear acceptable risk * Builds on our leading capital markets
Slide 9: Westpac is well positioned for growth
Westpac is well positioned for growth +. Increases in saies force leveraging enhanced infrastructure 1 Consumer distribution * Increasing footprint in selected geographic locations + Pinnacle loan origination system providing a comparative advantage 2 Business distribution * Increasing footprint and
Slide 10: Financial sector short-term outlook
19 Financial sector short-term outlook + Expect credit growth to moderate to more sustainable levels * Ongoing competitive intensity, with rising demands around customer experience + Bad debt environment trending modestly higher, but no signs of systemic stress + Wealth management represents major g
Slide 11: Economic environment sound
21 Economic environment sound * Expansion continues in Australia, although drought a negative * By contrast, a period of consolidation in New Zealand * Global growth above par for Annual GDP {Year average, Calendar years %) EB GDP (Aust) 2004 GDP. (NZ) 2006 (e) last four years, likely to be ial “ee
Slide 12: Credit growth expected to edge lower
Credit growth expected to edge lower Australian and New Zealand credit growth (%) Forecasts a (To Sapt 2007) 20.- | 20 16.; ~4 4 Jun-99 Dec-00 Jun-02 Dec-03 Jun-05 Dec-06 Aust. housing oon ASE. business Total credit (Aust) -+ «= Total credit avg (Aust) © ----- Total housing avg (Aust) »———~ Total cr
Slide 13: Strong dividend growth — higher sustainable payout
26 Strong dividend growth — higher sustainable payout Dividends per share (cents) 60.5 2006 dividend up 16% — Supported by 23% ROE, ~~". 56 significant franking surplus ($417m) and 50 4 strong capital position 49 20 PREP EERE 60 2HO5 THOG 2HO6 Dividend considerations ss 2.2 “- MN Dividend”) Detiver
Slide 14: Cards portfolio continues to grow strongly
27 Cards portfolio continues to grow strongly * Credit card portfolio up 7% in Q1, grown 18% in 12 months to Dec 06 + Above system growth driven by: ~ Launch of new products, complementing existing suite ~ Superior branch origination processes delivered by Reach via online applications ~ Improved an
Slide 15: Well provisioned under A-IFRS
Well provisioned under A-IFRS + On transition to A-IFRS Westpac and ail : Australian banks reduced their collective Provisions for impairment losses on loans ($m) provision levels 2,000 : i General Resarve for Credit Losses adjustment .| * Westpac remains well provisioned on both an : absolute basis
Slide 16: Composition of portfolio
31 Composition of portfolio On balance sheet fending ~ September 2006 Other ~ A consumer, 5% Personal Loans. Mortgages represent 43% of total commitments and 57% of funded lending Total Committed Exposure® by customer segment 8% “og y 8% 2% Sep-02 “- Sep03 “-~ Sep-04 Sep-06 Sep-06 & Corporate O Busi
Slide 17: WIB portfolio - ROE vs allocated equity
WIB portfolio - ROE vs allocated equity 4 Structured Oey. [| ye Finance “Oy. “eins & Foreign Exchange “ em a 9 Structured Equities Transactional _ . Specialised J FM Capital Capital x Markets . ; . Grou 7 Debt Capital Financing Pp an” Markets | | | | Allocated Equity 33 international Roadshow - Marc
Slide 18: BT - researcher support for performance
BT - researcher support for performance * Continued researcher upgrades Aussie Equities upgrades and new ratings since and new ratings for Aussie Equities since Oct 06 Core 5 Stars Uparade * Strong researcher support for imputation 4 Stars Upgrade Sar international equities post AQR BUY New Rating W
Slide 19: BT - insurance businesses - great potential
37 BT - insurance businesses - great potential * Continued momentum in insurance business » Benefiting from cross-sell initiatives across the group ° Life sales up 32% on same period last year ° Life Direct accounts for approximately 1/3 of Life Insurance Sales ° In Q1, Life Direct increased new pre
Slide 20: Disclaimer
39 Disclaimer The material contained in this presentation is intended to be general __ background information on Westpac Banking Corporation and its activities. The information is supplied in summary form and is therefore not necessarily complete. Also, it is not intended that it be relied upon as a