National Australia Bank Limited · ASX:NAB
National Australia Bank — Citigroup Australia & NZ Investment Conference 2005
19 slides from National Australia Bank's conference presentation, Mar 16, 2005
Slide 1: NAB in the UK
Citigroup Australia & NZ Investment Conference NAB in the UK Lynne Peacock, CEO Europe [> expertise National
Slide 2: National Australia Group Overview
National Australia Group Overview yo Profit & Loss Net Interest income cm) Teta Income (Any Proft betore Tax (fm) Proft ater Tex (tm)** Net interest margin 0) Key Operational Date ‘Customers (m) Branches Other outlets Flee Key Comparative Data 10,022 NAB in Europe Good value acquisitions in the UK +
Slide 3: Portfolio Review
Portfolio Review Europe Banks Portfolio Options __ Pros Cons i Retain All GB: | ce || vB ireland: [we | {tue + Regional coverage + Cost synergies from integration Complexity and delivery risk Significant costs to implement compliance and infrastructure programs 2, SellAll co wnt BES * Refocus on cor
Slide 4: Portfolio Review (continued)
Portfolio Review (continued) Europe Banks Pros Cons Portfolio Options 4, Retain GB, Sell rish + Greater management + Separation and transitional focus arrangements add complexity in short term cp: e + Ireland not central to new strategy Ireland: | | + GB marketis attractive + Highest value option =
Slide 5: Rationale for UK presence
Rationale for UK presence > The UK market is very large. Key Comparative Data > UK market supports multiple business Australia UK GOP 2008 ¢etn) 307 328 model Population (ri) 0 oo Mortgages Outstanding @br) 194 882 Credit Cards Outstanding bn) 10 ‘34 > ‘Key differentiation for Group and diversity Ot
Slide 6: Background
Background all Key European Issues — Early 2003 > Strategy, Leadership and Structure > Distribution » Products and Pricing » Infrastructure and Process >» Cost Base
Slide 7: Strategy Summary
Strategy Summary all “Do what we do, but do it better” “Do what we do, but do it better” re GB busines “Playing a different game” A a 2002
Slide 8: Summary of Our Approach
Summary of Our Approach all “Do What We Do But Do It Better” > Realignment of distribution footprint including small business > Increase capability of staff > Simplified and reinvigorated product set » Refreshed brands and improved customer understanding > Efficient back office Impact Volume growth
Slide 9: Summary of Our Approach
Summary of Our Approach all “Playing a Different Game” > Focus on relationship managed integrated financial solutions for Business / Premium customers * National IFS programme > Third Party Distribution Impact - IFS / Third Party > Significant customer acquisition, asset and revenue growth, with Thi
Slide 10: Status — Retail
Status — Retail Results so far Impact > Increase in new customers and > Above systems growth in core decrease in customer attrition products > Increase in insurance cross sales > Further Increases in cross > Increased variable pay sales levels > Productivity improvements > Reduced cost to serve Work
Slide 11: Rationalise and Align: CYB Product Portfolio
Rationalise and Align: CYB Product Portfolio 2002 Product Set 1,200 1,000 600 400 200 Rationalised Product Set Rationalised via sale
Slide 12: Status — Products
Status — Products Results so far > Products rationalised > Margins managed down > New products “fit for purpose” > Sale of National Australia Life / L&G alliance Work still to do > Continue margin management > Further product rationalisation > Develop new products Impact > Margin contraction to cont
Slide 13: Status — Marketing
Status — Marketing all Results so far > Developed and rolled out National Leads > Development of outbound call centre lead generation > Introduction of CVM to improve customer understanding > Brand revitalisation and brand values Work still to do > Improve customer understanding and analytics > On-g
Slide 14: Status - Operations
Status - Operations Results so far Impact > Legal entity merger > Improved processing efficiencies > Centralisation of processes and > £60m in cost savings identified to workload removal date > Selective outsourcing > Increased flexibility > Technology —Front End / platforn > Products quicker to mar
Slide 15: Status - IFS
Status - IFS Results so far > 12 sites opened in the South East > Over 200 hires — circa 65% external > Attractive incentive system Work still to do. > Development of another 20 sites in the South East > Complete "retro-fitting” of IFS into Clydesdale and Yorkshire Business Banking activities Impact
Slide 16: Status - Third Party Distribution
Status - Third Party Distribution Results so far > Capability built > £125m business written in FYO4 since launch in April 2004 Work still to do > Increase volumes > Further development of products tailored for Third Party channel > Improved processing Impact > Expect Third Party channel to contribu
Slide 17: Performance Outlook
Performance Outlook v Targeting return to sector growth rates and profitability v Facing headwinds from several issues in current year * Ongoing margin decline * Built in costs and ongoing investment v Early results are positive but '05 earnings are expected to show a decline on ’04 v 2 to 3 year tu
Slide 18: Summary
Summary >» UK market is attractive > Developing business will create more value than selling > Why we will be successful * Leadership team with proven track record in UK market * Clear and differentiated strategy
Slide 19: Searchable text section of graphics shown above
Searchable text section of graphics shown above Cit igroup Australia & NZ Investment Conference NAB in the UK Lynne Peacock, CEO Europe 10 March 2005 [GRAPHIC] [LOGO] Nat ional Australia Group Overview Key Comparative Data FY04 NAB Group UK Profit & Loss Net Interest Income (£m) 2,916 Total Income (
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