Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — ABN AMRO Regional Banks Conference 2006
15 slides from Bendigo & Adelaide Bank's conference presentation, Nov 23, 2006
Slide 1: ABN AMRO Regional Banks Conference
ABN AMRO Regional Banks Conference 23 November 2006 Mike Hirst Chief Operating Officer Bendigo Bank Group © Bendigo Bank Knowing the way forward
Slide 2: Bendigo Bank is a financial solutions distribution organisation
Bendigo Bank is a financial solutions distribution organisation Offering a premium service Providing a high value proposition; not price led Building relationships with consumers, SMEs and partners Engaging with communities to enhance their prospects Knowing the way forward © Bendigo Bank
Slide 3: Our strategy reflects our core strengths...
Our strategy reflects our core strengths... A disciplined application of a branded retail strategy A strong, differentiated reputation and brand Quality customer service A willingness and ability to undertake collaborative commerce Discipline to build gradually, as capital allows Knowing the way for
Slide 4: Over the last five years we have...
Over the last five years we have... Established a complete retail financial services offering by: - Adding Financial Planning - Expanding our Wealth Management product offering - Developing a network based business banking capability including asset and cash flow financing, trade & treasury - Formin
Slide 5: One view of the market going forward
One view of the market going forward « In the short term: - market share driven - areturn to customer centric values - branches are back! - further commoditisation and margin contraction ¢ In the medium term: - networks no longer transaction based - trusted advice is important and valued - highly sk
Slide 6: Implications?
Implications? Economics of physical networks driven by customer acquisition and depth of relationship Differentiated brand vital to enable higher margins Customer satisfaction and trust will be important in driving customer advocacy Ensuring staff are engaged and culturally aligned to the strategy w
Slide 7: Bendigo is well positioned for continuing customer acquisition...
Bendigo is well positioned for continuing customer acquisition... Customer advocacy and Ranked # 1 choice for customer satisfaction customers looking to highest in industry on change banks surveys including: - Net Promoter Scores —_ . . iB % of customers intending to switch kerks thet plan to join v
Slide 8: ...and there is great scope for relationship growth
...and there is great scope for relationship growth 60% 50% | 40% | 30% | 20% | 10% | 0% 5+ 8 Knowing the way forward © Bendigo Bank
Slide 9: Our network is focused on sales and service
Our network is focused on sales and service Moved to state based management Increased number of Regional Managers Responsible for: - Company and community branches - Business Bankers - Financial Planners Community engagement central to branch development Knowing the way forward © Bendigo Bank
Slide 10: Relationships are deposit led with good penetration in loans and wealth management
Relationships are deposit led with good penetration in loans and wealth management Banking Deposits Banking Loans 21% Insurance 7T% 10 Knowing the way forward © Bendigo Bank
Slide 11: Our Wealth Management offering has progressed...
Our Wealth Management offering has progressed... Changed remuneration structure for advisers from sales based to high base salary with Group staff bonus Continued programme of “home-grown” advisers Customers can choose to pay commission or fixed fee Launched Professional Series funds to complement p
Slide 12: ...and our Funds Under Management growth is strong
..and our Funds Under Management growth is strong @ VSCL Debentures Bi Diversified Funds O Cash Management Trust O Superannuation @ Australian EquitiesFunds @ Mortgage Funds June June June June June June 2001 2002 2003 2004 2005 2006 Knowing the way forward © Bendigo Bank
Slide 13: Significant Wealth Management investment
Significant Wealth Management investment The Bendigo Wealth Solutions division contributed $51m in revenue and $25m before tax in 2006 Based on median P/E of listed wealth management companies (19x ’07F) Bendigo’s wealth business is worth around $340m In addition Bendigo has investments in lIOOF (5.
Slide 14: We have investments in a number of established and "start up" businesses
We have investments in a number of established and “start up” businesses Elders Rural Bank Tasmanian Banking Services Homesafe Solutions Strategic Payment Systems Community Telco Australia Community Foundation Community Sector Bank Community partnerships involved in: - Telco - Biodiesel - Youth deve
Slide 15: In conclusion, Bendigo...
In conclusion, Bendigo... ¢ Is strategically strongly positioned - strong brand - national (but immature) branch network - high levels of customer advocacy - relevant product offering with value pricing - engaged customers, communities and staff ¢ Has diversified the revenue base - significant wealt
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