Westpac Banking Corporation · ASX:WBC
Westpac Banking — Investor Presentation (July 2003)
15 slides from Westpac Banking's investor presentation, Jul 31, 2003
Slide 1: BT Financial Group
AY 7 Australia's First Bank _ BT Financial Group David Clarke CEO BT Financial Group 31 July 2003
Slide 2: Accountable: integration synergies being delivered
Accountable: integration synergies being delivered * Organisational integration virtually complete ¢ First major systems migrations (margin lending & banking services) on time and on budget * Corporate super and back office systems to be migrated through September and October * $47.7 million or 94%
Slide 3: Accountable: valuation robust / BT FUM stabilising
Accountable: valuation robust / BT FUM stabilising * BT Heritage retail funds improving against valuation assumptions * Shortfall in funds under management more than offset by higher synergies ¢ Valuation buffer exceeding $600m Australia's First Bank BT retail funds under management $bn 12.5 104 oO
Slide 4: Performance turnaround: Australian equities
Performance turnaround: Australian equities Sagitta Rothschild Australian Equity Sector. Trust vs S&P/ASX300 Accumulation Index 0.8% > 0.4% - + 2.0% 0.0% + 0.0% af oy 0.4% | Om ~0,8%.5 +0.27% | ~4.0% A2% + 1.6% + | 8.0% -2.0% L.-8.0% Mim Portfolio excess return (LHS) —@- One-Year Excess Return Sourc
Slide 5: Performance turnaround: Balanced
Performance turnaround: Balanced Quartile Graph - Growth Funds. 30. June.2003 12.0 10.0 8.0. 6.0. 6 ° =. UQ to Max 40 a re) nn ed 2. Median to UQ ° =..LQ to Median. 20 — =... Min to LQ —— oo. BIFM 0.0 | -Sagitta Rothschild 2.0 ° a —— ° -4.0 6.0 ~ “ 1.m Return 3.m Retum 6m Return 9 m Return ty Return
Slide 6: Performance turnaround: outflows abating
Performance turnaround: outflows abating BT Financial Group Net Flows ($m) $0 T T T T T T T T T Sep-02 - Oct-02 ‘Nov-02 Dec-02 -Jan-03 -Feb-03 -Mar-03 -Apr-03 -May-03 -Jun-03 -$200.+ -$400 4 -$600 + -$800 = -$1,000 + -$1,200 4 -$1,400.5 -$1,600. 5 -$1,800 past anan 6 Market Update - July 2003
Slide 7: future opportunities
Diversified business: future opportunities * Growth potential for the new BT: ~— Diversified business, not just a star fund manager ~— Most businesses growing even before merged entity opportunities — Can better leverage the bank relationship — Program to restore brand confidence Market Update - Jul
Slide 8: performing well
Diversified business: performing well New business Product Market Rank Market Rank share share Corporate super 5.0% 9 9.8% 6 Wrap & master trust 9.8% 5 19.5% 2 Life and risk 6.1% 8 9.9% 4 Margin lending 15.7% 2 0.2% increase in share Retail 10.2% 5 Outflow Sources: Retail - ASSIRT Mar 03 Wrap and Ma
Slide 9: corporate super
Diversified business: corporate super ¢ BT corporate super platform now available to WBC corporate clients * Significant untapped opportunity — Pre-BT, corporate super market share 2% vs Westpac business banking market share closer to circa 25% ¢ WIB/BT cross-sell this month - $6 million client with
Slide 10: opportunity to increase wallet share
Diversified business: opportunity to increase wallet share * Huge opportunity to leverage the banking relationship ¢ Share of our customer’s investment wallet is low compared to peers — currently at 11.5% ¢ Bridging this gap, just by a fraction, delivers enormous value * Westpac estimated managed in
Slide 11: planner network opportunities
Diversified business: planner network opportunities ¢ Westpac advisor network needs to compliment our strength in IFA market ¢ Adviser network strategy: - External appointment to head of division - Dual reporting lines introduced - to both BT and Business and Consumer Banking - Increase productivity
Slide 12: brand
Diversified business: brand Brand to be re-launched - August/September Follows extensive internal and external research Opportunities for leadership identified Clear break between old and New BT - Positioning - Offering past anan 12 Market Update - July 2003
Slide 13: continued Wrap strength
Diversified business: continued Wrap strength ¢ Wrap products are the Number 1 WRAP for inflows fastest growing sector in ssi Men 2009) $bn the market 9 . 8 Pree rere errr eee eer iee eee rrr ee eee Perea rere eee eee * 6 new badges added since August 2002 7 pn eeresaperorencsoncesosaecesssacvorsese
Slide 14: Summary: the NEW BT
Summary: the NEW BT Profitable e Accountable * Improved investment performance and flows Strong diversified growing business past anan 14 Market Update - July 2003
Slide 15: 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