Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Bendigo Bank — Shareholder Meeting (October 2005)
95 slides from Bendigo & Adelaide Bank's shareholder meeting presentation, Oct 31, 2005
Slide 1: 140th Annual General Meeting
140th Annual General Meeting i Hh I 31 October 2005 Knowing the way forward © Bendigo Bank
Slide 2: Welcome
Welcome Richard A. Guy OAM Chairman Knowing the way forward © Bendigo Bank
Slide 3: Welcome
Welcome Two opportunities to question Board AGM to again be webcast Knowing the way forward © Bendigo Bank
Slide 4: Bendigo Bank Directors
Bendigo Bank Directors Rob Hunt AM Neal Don Robert Managing Axelby Erskine Johanson Director Deputy Chairman Knowing the way forward © Bendigo Bank
Slide 5: Bendigo Bank Directors
Bendigo Bank Directors Terry Kevin O’Dwyer Roache Knowing the way forward © Bendigo Bank
Slide 6: Proxies
Proxies Richard A. Guy OAM Chairman Knowing the way forward © Bendigo Bank
Slide 7: Proxies
Proxies Summary of proxies held by Chairman in favour of resolutions Knowing the way forward © Bendigo Bank
Slide 8: Notice of meeting
Notice of meeting Richard A. Guy OAM Chairman Knowing the way forward © Bendigo Bank
Slide 9: Notice of meeting
Notice of meeting Mailed to shareholders on 29 September 2005 Notice to be taken as read Knowing the way forward © Bendigo Bank
Slide 10: Minutes
Minutes Approved by Bendigo Bank board No requirement for meeting to endorse Shareholder questions regarding minutes Knowing the way forward © Bendigo Bank
Slide 11: Address by Chairman
Address by Chairman Richard A. Guy OAM C h a rman i || Knowing the way forward © Bendigo Bank
Slide 12: Introductory Remarks
Introductory Remarks Our vision for Bendigo Bank is for a different style to what people have become used to from the banking sector —a bank that is focused on the customer. Knowing the way forward © Bendigo Bank
Slide 13: Outline of address
Outline of address Reflection on progress 2005 performance review Growth prospects Knowing the way forward © Bendigo Bank
Slide 14: Our core strengths
Our core strengths Quality customer service Prosperous communities High reputation Knowing the way forward © Bendigo Bank
Slide 15: The 1990s
The 1990s Other banks were closing branches We created a unique identity that drew customers to us Knowing the way forward © Bendigo Bank
Slide 16: Today
Today Branch numbers quadrupled Customer numbers quadrupled Nine-fold rise in after-tax profit e-banking, Phone Bank Wealth Solutions Knowing the way forward © Bendigo Bank
Slide 17: Partnerships
Partnerships Elders Rural Bank Tasmanian Banking Services Community Sector Banking Knowing the way forward © Bendigo Bank
Slide 18: Investment grade ratings
Investment grade ratings Standard & Poor's, BBB+ Fitch & IBCA, BBB+ Knowing the way forward © Bendigo Bank
Slide 19: A new brand
A new brand Strength of our brand is A. ea ics, creating new opportunities NNN Knowing the way forward © Bendigo Bank
Slide 20: 2005 result
2005 result Underlying earnings grew by 17 per cent to $146 million Knowing the way forward © Bendigo Bank
Slide 21: Profit growth
Profit growth Net Profit after tax ($ mil.) _ Reported @ Net of significant items
Slide 22: Profit progression
Profit progression 2001 2002 2003 2004 2005 56% 46% 21% 35% 19% Knowing the way forward © Bendigo Bank
Slide 23: Earnings per share
Earnings per share Earnings per Ordinary Share (cents) Reported 2 Cash basis
Slide 24: Shareholder dividends
Shareholder dividends Dividends (cents per ordinary share) | “Special 15.0
Slide 25: Loans under management
Loans under management Loans under management ($ mil.)
Slide 26: Deposit growth
Deposit growth Deposits ($ mil.) 1,284 — @ Bank Managed Total
Slide 27: Sandhurst
Sandhurst Trustees Managed funds increased by 26 per cent Knowing the way forward © Bendigo Bank
Slide 28: Credit quality
Credit quality Low impaired assets Monitor credit trends Building general provision Low-doc lending not sought Excellent credit quality Knowing the way forward © Bendigo Bank
Slide 29: Bendigo Preference shares
Bendigo Preference shares Diversify capital base Cost-effective Franked return Knowing the way forward © Bendigo Bank
Slide 30: Share buy-back
Share buy-back 2.8 million ordinary shares cancelled Knowing the way forward © Bendigo Bank
Slide 31: Milestones
Milestones 300th branch 150th Community Bank® branch Knowing the way forward © Bendigo Bank
Slide 32: Geographic spread
Geographic spread ; . Ag Of Uctober 2008 Bendigo Bank 152 Branches Community Bank 168 Branches Total 320 Branches
Slide 33: Million transactions
100 million ‘i transactions Knowing the way forward oO Bendigo Bank
Slide 34: ATMs
350 ATMs Grew by one a week during 2004/05 Expect to install a further 80 in 2005/06 Knowing the way forward © Bendigo Bank
Slide 35: Investments in...
Investments In... Our brand Our branches Our electronic networks Our products Knowing the way forward © Bendigo Bank
Slide 36: Community Bank branches
Community Bank® 168 branches Almost $7 billion $11 mil. to Bendigo Bank profit $60 mil. in community revenue Knowing the way forward © Bendigo Bank
Slide 37: Elders Rural Bank
Elders Rural Bank $2.5 billion in assets $13.7 million to Bendigo Bank profit Excellent growth prospects Knowing the way forward © Bendigo Bank
Slide 38: Tasmanian Banking Services
Tasmanian Banking Services Six branches $700,000 to Bendigo Bank profit Community Bank® prospects Knowing the way forward © Bendigo Bank
Slide 39: Wealth Solutions
Wealth Solutions $18.8 million to Bendigo Bank profit Financial services Deepening customer relationships Aiding capital management Knowing the way forward © Bendigo Bank
Slide 40: Community Sector Banking
Community sector Banking Recorded first profit Growth potential COMMUNITY SECTOR BANKING Knowing the way forward © Bendigo Bank
Slide 41: Community engagement
Community engagement a) ca cagmmunityenterprise An initiative of the Bendigo Bank Group Knowing the way forward © Bendigo Bank
Slide 42: Community engagement
Community engagement Lead On Knowing the way forward © Bendigo Bank
Slide 43: Community engagement
Community engagement Sustainable growth Adding value Point of difference Knowing the way forward © Bendigo Bank
Slide 44: Community engagement
Community engagement Average of 7000 new customers per month Broadening relationships Knowing the way forward © Bendigo Bank
Slide 45: New markets, new Community Bank branches
New markets 30 new Community Bank® branches Six new company branches 70% of new branches interstate Brand advertising campaign Knowing the way forward © Bendigo Bank
Slide 46: Bendigo Bank Docklands
a Knowing the way forward Bendigo Bank Docklands © Bendigo Bank
Slide 47: Bendigo headquarters
ae: Bendigo headquarters Knowing the way forward © Bendigo Bank
Slide 48: Market conditions
Market conditions Housing slowdown July - September growth progression Our aim: growth of 10 per cent in cash earnings per share Knowing the way forward © Bendigo Bank
Slide 49: Our people
Our people Number 1 for customer satisfaction Thank you on behalf of shareholders Knowing the way forward © Bendigo Bank
Slide 50: Board structure
Board structure Requires a balance between experience and new ideas Knowing the way forward © Bendigo Bank
Slide 51: Board renewal
Board renewal Company poised for next growth phase Sustainable success requires planning Fee increase will provide flexibility for future Knowing the way forward © Bendigo Bank
Slide 52: Board renewal
Board renewal Chairman to step down in March 2006 Mr Johanson to assume the chair Mr Roache to retire in 2009 New Director appointments Knowing the way forward © Bendigo Bank
Slide 53: Board renewal
Board renewal Joined Board in 1982 Chairman since 1986 Knowing the way forward © Bendigo Bank
Slide 54: Board renewal
Board renewal Angus McKay Jr 42 years Star BS George McKay 19 years BBS Allen Guy CBE 19 years S’hurst BS 20 years STL 1 year BBS Eric Cohen 25 years BBS 16 as Chairman Peter Guy 3 years BBS Richard Guy OAM 24 years BBS/BBL —_ Knowing the way forward 19 as chairman @ Bendigo Bank
Slide 55: Board renewal
Board renewal Changing face of Bendigo Annual lending: 1982 - $60 mil. 2005 - $6000 mil. Knowing the way forward © Bendigo Bank
Slide 56: Board renewal
Board renewal Culture intact No.1 for customer satisfaction in Nielsen survey A nationwide network Knowing the way forward © Bendigo Bank
Slide 57: Board renewal
Board renewal Growth through merger: Sandhurst BS Sunraysia BS Sandhurst Trustees Capital BS Compass BS NMMC IOOF BS Monte Paschi Victorian Securities First Australian BS Oxford Funding Knowing the way forward © Bendigo Bank
Slide 58: Board renewal: Thank you
Board renewal Thank you Knowing the way forward © Bendigo Bank
Slide 59: Address by Managing Director
Address by Managing Director Rob Hunt AM Managing Director Knowing the way forward © Bendigo Bank
Slide 60: Accounts and reports
Accounts and reports Mailed to shareholders on 29 September 2005 Copy available from Share Registry or website Annual Report to be taken as received Knowing the way forward © Bendigo Bank
Slide 61: Shareholder questions
Shareholder questions Overview of shareholder questions received Summary of shareholder questions of the Board and Auditor available prior to meeting Copies to be available from website Knowing the way forward © Bendigo Bank
Slide 62: Shareholder questions
Shareholder questions Response to shareholder questions of general interest Knowing the way forward © Bendigo Bank
Slide 63: Shareholder questions
Shareholder questions Questions by Shareholders to the Board, Management and Auditor Knowing the way forward © Bendigo Bank
Slide 64: Remuneration Report
Remuneration Report Item 2 on the Agenda Sets out remuneration policies and practices for Group during 2005 Vote on resolution is advisory only Proposed changes to Group remuneration arrangements announced on 19 Oct. 2005 Knowing the way forward © Bendigo Bank
Slide 65: Remuneration Report
Remuneration Report Discontinue the current employee share plan New plan to be introduced for general employees Separate plan to be introduced for Managing Director and executives Knowing the way forward © Bendigo Bank
Slide 66: Remuneration Report
Remuneration Report Includes appropriate performance hurdles Aggregate director fees and executive remuneration considered to be reasonable based upon independent advice and survey analysis Knowing the way forward © Bendigo Bank
Slide 67: Remuneration Report
Remuneration Report Item 2 on the Agenda Proxies For Against Open Abstain No instruction 15,277,818 2,888,114 6,182,324 446,787 5,943,051 Knowing the way forward © Bendigo Bank
Slide 68: Remuneration Report
Remuneration Report Resolution: That the Remuneration Report for the Company for the year ended 30 June 2005 be adopted Knowing the way forward © Bendigo Bank
Slide 69: Election of Directors
Election of Directors Items 3, 4 & 5 on the Agenda No further nominations received Formal process undertaken to support Director re-election Knowing the way forward © Bendigo Bank
Slide 70: Re-election of Mr Neal Axelby
Re-election of Mr Neal Axelby Resolution: Mr Neal Axelby, who retires from office under Rule 67 of the Company’s Constitution be re-elected as a Director of the Company Knowing the way forward © Bendigo Bank
Slide 71: Re-election Mr Axelby
Re-election Mr Axelby Item 3 on the Agenda Proxies For Against Open usable Abstain No instruction 18,174,344 299,140 6,122,065 199,494 5,943,051 Knowing the way forward © Bendigo Bank
Slide 72: Re-election of Mr Robert Johanson
Re-election of Mr Robert Johanson Resolution: Mr Robert Johanson, who retires from office under Rule 67 of the Company’s Constitution be re-elected as a Director of the Company Robert Johanson Knowing the way forward © Bendigo Bank
Slide 73: Re-election Mr Johanson
Re-election Mr Johanson Item 4 on the Agenda Proxies For Against Open usable Abstain No instruction 18,165,402 323,900 6,116,124 189,617 5,943,051 Knowing the way forward © Bendigo Bank
Slide 74: Re-election of Mr Terry O'Dwyer
Re-election of Mr Terry O'Dwyer Resolution: Mr Terry O’Dwyer, who retires from office under Rule 67 of the Company’s Constitution be re-elected as a Director of the Company Knowing the way forward © Bendigo Bank
Slide 75: Re-election of Mr Terry O'Dwyer
Re-election of Mr Terry O'Dwyer Item 5 on the Agenda Proxies For Against Open usable Abstain No instruction 18,097,628 368,728 6,120,883 207,804 5,943,051 Knowing the way forward © Bendigo Bank
Slide 76: Response
Response Response from Mr Neal Axelby on behalf of the re-elected Directors Knowing the way forward © Bendigo Bank
Slide 77: Special business
Special business Item 6 on the Agenda Increase to non-executive director fee limit Knowing the way forward © Bendigo Bank
Slide 78: Special business
Special business Item 6 on the Agenda Approval for the increase is required under ASX Listing Rule 10.17 and Rule 55 of the company’s constitution Knowing the way forward © Bendigo Bank
Slide 79: Special business
Special business Item 6 on the Agenda Board objective that director fees align with market relativities and board responsibilities. Knowing the way forward © Bendigo Bank
Slide 80: Special business
Special business Item 6 on the Agenda Approval for the increase is sought due to: Size, nature and complexity of Group has increased Knowing the way forward © Bendigo Bank
Slide 81: Special business: Regulatory requirements increased
Slide 82: Special business: Community expectations increased
Slide 83: Special business: Board responsibilities and time demands
Slide 84: Special business: Retirement benefits crystallised
Slide 85: Special business: Independent advice on director fees
Slide 86: Special business: Consolidated director fee
Slide 87: Directors' fees
Slide 88: Resolution
Slide 89: Special business: Proportional takeover provisions
Slide 90: Special business: Proportional Takeover Scheme
Slide 91: Special business: Proportional Takeover Rule
Slide 92: Proportional takeover rule
Slide 93: Resolution
Slide 94: General business
Slide 95: Close of meeting