Commonwealth Bank of Australia · ASX:CBA
Commonwealth Bank of Australia — Investor Presentation (September 2003)
23 slides from Commonwealth Bank of Australia's investor presentation, Sep 19, 2003
Slide 1: Analyst Briefing
Analyst Briefing David Murray, CEO 19 September 2003 www.commbank.com.au 1
Slide 2: Disclaimer
Disclaimer The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 19 September 2003. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice
Slide 3: Speaker's Notes
Speaker’s Notes • Speaker’s notes for this presentation are attached below each slide. • To access them, you may need to save the slides in PowerPoint and view/print in “notes view.” 3
Slide 4: This presentation will answer three key questions
This presentation will answer three key questions 1. What is the new service vision? 2. How will we transform the Bank? 3. What will be the outcomes? 4
Slide 5: What is the new service vision?
1. What is the new service vision? ‘To excel in customer service’ 5
Slide 6: Why the service transformation is necessary
Why the service transformation is necessary Environment Customer need Imperatives for the Bank Demographic High value creation Service change transformation Through advice and investment Competitive superiority Monetary Even better value cycle 6
Slide 7: There are three themes in our service transformation
There are three themes in our service transformation ‘To excel in customer service’ via Engaged people Simple processes Customer service who are empowered, Supported that are fast, accurate that is responsive, Through motivated and by convenient and and efficient skilled to deliver reliable Customer
Slide 8: How will we transform the Bank? Customers
2. How will we transform the Bank? Customers will receive ‘what they need, when they need it’... ‘To excel in customer service’ via Customer service Engaged people Simple processes who are empowered, Supported that is responsive, Through that are fast, accurate motivated and skilled by convenient an
Slide 9: The Bank will be a place where every day is a good day
The Bank will be a place where ‘every day is a good day’ for our people... ‘To excel in customer service’ via Customer service Engaged people Simple processes who are empowered, Supported that is responsive, Through that are fast, accurate motivated and skilled by convenient and reliable and efficie
Slide 10: Our people will be supported by processes that are simply better
Our people will be supported by processes that are ‘simply better’ ‘To excel in customer service’ via Customer service Engaged people Simple processes who are empowered, Supported that is responsive, Through that are fast, accurate motivated and skilled by convenient and reliable and efficient to de
Slide 11: This is a whole of business approach
This is a whole of business approach (Key Workstreams) Customer services Segment & Advice alignment Distribution optimisation Service/ Distribution sales Advice implementation efficiency Branch use for IBS/PFS/RBS effectivenes Service/sales system Branch refurbishment s Divisional Sales and Service
Slide 12: We have a workplan for implementation over the next three years
We have a workplan for implementation over the Group Coordinated next three years Division ‘Scale it up’ ‘Make it stick’ ‘Clear the way’ ‘Get on with it’ 12 months Jun 06 12 months Jun 05 Today 4 months Jan 04 6 months Jun 04 m Service/sales effectiveness Customer services IT enablers Distribution e
Slide 13: What will be the outcomes? Customer outcomes
3. What will be the outcomes? Customer outcomes • faster service delivery • better quality advice • less paper work • fewer hand offs to find a solution • only need to provide information once 13
Slide 14: People outcomes
People outcomes • Workplace improvement –enhanced training –achievement recognition –simpler processes and less bureaucracy –frontline staff will spend more time with customers –more authority to provide solutions for customers • Process simplification and elimination of unnecessary work reduces res
Slide 15: Financial impact and outcomes
Financial impact and outcomes Subject to current market conditions continuing Over the next three years we will: Over the next three years this will result in: • Cash EPS growth exceeding 10% CAGR • Redirect the normal project spend of $600m • 4-6% CAGR productivity improvements • Spend an additiona
Slide 16: Investments & Benefits
Investments & Benefits Total Investment Analysis ($m) 2004 2005 2006 2004-06 Estimated Investment Spend Initiatives 570 425 225 1,220 Branch refresh 90 85 85 260 Total Investment Spend (pre tax) 660 510 310 1,480 Estimated Benefits (pre tax) (1) 200 620 900 1,720 (1) Estimated benefits are recurring
Slide 17: Investment and Accounting Treatment
Investment and Accounting Treatment • $200m of software expenditure over the three years will be capitalised ($90m in 2004) and $260m over three years will be capitalised for branch refurbishment ($90m in 2004) • In addition, $215m of the $248m capitalised software from previous years will be expens
Slide 18: Estimated Financial Impact of Transformation Costs
Estimated Financial Impact of Transformation Costs Adjusted Cash EPS • The following transformation costs will be added back to the 2004 cash earnings when considering the dividend payment: $m Total investment spend for 2004 660 Provision for future years (at June 2004) 210 Capitalised software and
Slide 19: Productivity improvements of 4-6% pa CAGR over the next three years
Productivity improvements of 4-6% pa CAGR over the next three years Life Cost* to Funds Average Banking Management Inforce Cost to Cost* to Premiums Income* Average FUM 57% 0.85% 52% Under Under Under 0.75% 48% 52% 2003 2006 2003 2006 2003 2006 Actual Estimate Actual Estimate Actual Estimate * Inclu
Slide 20: Dividends & Capital
Dividends & Capital • Subject to current trading conditions being maintained, we would expect the 2004 dividend per share growth to be in line with earnings per share growth, after adding back the transformation costs • We will continue to issue shares to satisfy the DRP which, subject to approvals,
Slide 21: What is different?
What is different? 21
Slide 22: Customer service, engaged people, simple processes
Customer service through engaged people supported by simple processes 22
Slide 23: Analyst Briefing
Analyst Briefing David Murray, CEO 19 September 2003 www.commbank.com.au 23
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