Westpac Banking Corporation · ASX:WBC
Westpac Banking — Investor Presentation (July 2003)
20 slides from Westpac Banking's investor presentation, Jul 31, 2003
Slide 1: Westpac Institutional Bank
Yi Australia’s First Bank Westpac Institutional Bank Philip Coffey - Group Executive - 31 July 2003
Slide 2: Agenda
Agenda * Business overview * Transformation * Expanded capabilities and growth path | Australia's First Bank 2 Market update - July 2003
Slide 3: Business overview: why WIB is different
Business overview: why WIB is different Aul 9 a Banking Customers | Australia's First Bank 3 Market update - July 2003
Slide 4: Business overview: solid platform
Business overview: solid platform Revenue — key driver of growth 600 500 400 300 200 4HO1 2H01 1H02 2HO2 4HO3 $m —@ Revenue © lll Expenses =i NPAT Revenue by product category - 1H03 Trade & International Derivative 8% Sales Financing Corporate 8% 16% Advisory and Custody 2% FM Trading 16% i! scG 3%
Slide 5: Business overview: a question of balance
Business overview: a question of balance WIB On Balance Sheet Lending 20.04 15.0.5 A$ bn. 10.0..+ §.0 > Sep. Sep Sep Mar Sep 1999 2000 2001 2002 2002 Mar 2003 WIB Impaired Assets Mg impaired Assets =f Ratio imp. Assets / Loans & Acceptances. 700 600 = 500 +; 400 + 300 + 200. + 100 5 FY.99 -FY.00.-FY
Slide 6: Business overview: good, but not good enough
Business overview: good, but not good enough Bonds/Semi's/Credit Australian Lead Bank Securities* FX* 1 ANZ 41 WBC 1 CBA 2 WBC =1 UBS 2 WBC New Zealand Lead Bank Syndicated Loans Trade and International 1 BNZ 2 WBC Debt Capital Markets 1 ANZ 2 WBC Transactional 1 ANZ 2 WBC Interest Rate Derivatives
Slide 7: Does being number matter?
Does being number 1 matter? ¢ Lead Bank status critical to maximise value * Corporate & Institutional clients nominate the 1-2 banks they consider their lead bank Why is it important? What drives Lead Bank status? —.. Accounts for over 55% (and up to 70%) of market share across ~~~ Relationships cor
Slide 8: Transformation: we have thoroughly reviewed our business
Transformation: we have thoroughly reviewed our business * Review undertaken to help us achieve our vision of being the No.1 wholesale bank in Australasia * Looked at how we operate, our processes, and how we can drive profitability through enhanced customer satisfaction and product excellence * Uti
Slide 9: Transformation: our way forward
Transformation: our way forward Completed Initiatives underway Goal | Australia's First Bank g Market update - July 2003
Slide 10: Transformation: our way forward
Transformation: our way forward Completed Organisational alignment Risk optimisation Initiatives underway Credit Portfolio Management Process mapping and alignment * Operating disciplines & value for money | Australia's First Bank * Single product coverage — Insto FX + IT enhancements + Structured i
Slide 11: Pinpointing growth opportunities
Pinpointing growth opportunities 40% 4 35% 4 30% + 25% 4 20% 4 = 15% 4 WiB Market Share (Revenue) 10% + 5% 4 WIB Product Positioning vs Market Size and Growth Capital Markets © Transaction Banking Above Natural © Custody Market Share Debt Financing Corporate Securities Below Natural interest Rates P
Slide 12: Building new capabilities
Building new capabilities « Building structure and capabilities in alternative assets * Acquired specialist asset management capability through Hastings Funds Management * Organised to facilitate acquisition, structuring and distribution whilst: * Separation of responsibility to achieve corporate go
Slide 13: Getting results: Moorebank Property Trust
Getting results: Moorebank Property Trust * Department of Defence site at Moorebank, valued at around $200m * Sale and leaseback transaction with over 40 bidders * WIB arranged debt and equity, Stockland Property Group was cornerstone investor * $70m of securities distributed to retail investors * L
Slide 14: Getting results: Westpac Office Trust
Getting results: Westpac Office Trust * New Westpac headquarters * WIB structured investment including — Initial capital guarantee ~ Instalment, leveraged investments — Yield based on WBC rental stream * Offer closed - $ 183m in first instalments received * Largest single site office property trust
Slide 15: Getting results: specialised funds
Getting results: specialised funds Hastings connection and processes agreed First asset acquired - Electranet at circa $120 million Leveraged: - WIB balance sheet and customer knowledge and - Hastings asset management and investor base Attracting institutional and retail investors | Australia's Firs
Slide 16: Getting results: specialised funds pipeline
Getting results: specialised funds pipeline * Global Renewables Limited * Hastings Retail Infrastructure Trust * Short listed for the Lane Cove Tunnel * Consortium member Mitcham - Frankston Freeway « Various others Australia's First Bank Market update - July 2003
Slide 17: Distribution: what did we say last year?
Distribution: what did we say last year? Tapping our large retail cu bg ¢ Leverage: renientfale product expertise; > retail investor relationships; and |—-—* Leverage our wholesale product expertise >» hybrid fequity / mezzanine debt Ws es : Expand investment range for retail investors | Australia's
Slide 18: Distribution: how did we go?
Distribution: how did we go ? . $1 -7bn prod ucts sold Retail distribution — volume of products sold over the last ten months $2,000 7 $1,500 « The number of structured $1,000 products offered to retail $500 customers increased ; 904998 20002001” 2002 To July from 14 in 2001 to 24 in 2003 2003 Produ
Slide 19: In summary
In summary * Solid platform and a diverse portfolio of businesses * Critical capabilities and initiatives to achieve lead bank status ¢ Pinpointed opportunities for growth and delivering with new capabilities Market update - July 2003
Slide 20: Disclaimer
Disclaimer The material contained in this presentation is intended to be general background information on Westpac Banking Corporation and its activities as at 31 July 2003. The information is supplied in summary form and is therefore not necessarily complete. Also, it is not intended that it be rel