Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — FY2004 Earnings Presentation
20 slides from Commonwealth Bank Of Australia's earnings presentation, Aug 11, 2004
Slide 1: Full Year Results - Presentation to Media
Full Year Results Presentation to Media David Murray Chief Executive Officer 11 August 2004 ao Which Bank www.commbank.com.au
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, 11 August 2004. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to
Slide 3: Agenda
Agenda e Full Year Results « Which new Bank « Outlook aa Which Bank ConmonwealthGark
Slide 4: A very good result
A very good result 2004 2003 Increase $m $m % « Statutory NPAT 2,572 2,012 27.8 » Cash NPAT 2,695 2,579 4.5 « Underlying Cash NPAT 3,078 2,674 15.1 yet Which Bank ConmonweailthBak
Slide 5: Strong performance by each business
Strong performance by each business Underlying Net Profit After Tax 2004 2003 Increase $m $m % Banking 2,675 2,376 13 # Funds Management 274 233 18 # Insurance 129 65 98 = Banking: reflects strong performances of retail operations » Funds Management: benefited from strong investment markets = Insura
Slide 6: Largest dividend increase ever
Largest dividend increase ever 2004 2003 « Dividends per share 183c 154c « Payout ratio (cash basis) 89.1% 75.9% Dividend (cents per share} 190 170 150 130 110 Cents Increase % 19 “1@ “1993 1994 1995 48996 1997 4998 1999 20060 2001 2002 20028 2004 [ GH First kalf MES ocond H aif Bank ConmonwealthGar
Slide 7: Key shareholder ratios
Key shareholder ratios 2003 Shareholder Ratios © « Earnings Per Share @ 203 cents « Return on Equity 13.3% « Dividends Per Share 154 cents « Payout Ratio 75.9% Underlying® EPS was 237 cents (+13% v. 2003) Underlying®) ROE was 15.1% (+1.3% v. 2003) () Based on Cash NPAT pre preference share dividends
Slide 8: Slide 8
Slide 9: Reminder - three service transformation themes
Reminder - three service transformation themes Customers are saying: “Know me, give me what I want and do it reliably” Which Bank ConmonweailthBank
Slide 10: Our achievements - first nine months to June completed successfully
Our achievements - first nine months to June completed successfully » June 2004 milestones completed as planned » 2003/04 spend delivered within planned investment = 2003/04 benefits exceeded targets « Market shares broadly stable « Staff are engaged yet Which Bank 10
Slide 11: We are changing the way we do things - Service and Sales Management
We are changing the way we do things - Service and Sales Management Results of national retail implementation Focussing on Product sales per staff member service in sno everything we do « Continuous reinforcement of service behaviours « Implementing Bank-wide approach to leads and referrals tanat "
Slide 12: We are changing the way we do things - streamlining processes
We are changing the way we do things - streamlining processes Viewing processes from the customer's perspective Emphasis on training and continuous improvement Aiming for 15% efficiency and up to 50% turnaround time improvements Turn around time improvements Merchant acquisition new accounts ‘| 70%
Slide 13: We are changing the way we do things - IT Efficiency and Procurement
We are changing the way we do things - IT Efficiency and Procurement « KeylT services reviewed « Systematic approach to all procurement being implemented Targeting efficiency savings >$100m pa Hours used Example: Mainframe processing efficiencies 11400 11200 11000 10800 8 8 Mar-04 Apr-04 May-04 Jun-
Slide 14: We are changing the way we do things - Performance Culture and engagement
We are changing the way we do things -— Performance Culture and engagement oe Leading by 2004 Gallup Workplace survey example 3.99 # Reinforcing behaviours as well 3.20 as outcomes 3.70 Mean Staff have been significantly engaged throughout 1999 2001 2003 2004 Which new Bank Source: Gallup Organisati
Slide 15: Our customers - relationship is strengthening
Our customers - relationship is strengthening Strength of relationship is building » Rigorous monitoring of customer service standards Results are encouraging Strength of relationship Score T Apr-Jun 03. Jul-Sep 03 Oct-Dec 03 Jan-Mar 04 Apr-Jun 04 Time ee Which Bank ConmonwealthGark 15
Slide 16: Which new Bank - our approach is different
Which new Bank - our approach is different » Across the Bank we share a single vision — to excel in customer service = Our people, systems, performance and culture are all being interconnected and aligned : Evidence is that there is collaboration and development of common systems across the business
Slide 17: 2005 outlook - Economy
2005 outlook - Economy « Global Noticeable improvement Expected monetary tightening « Domestic Continued good performance Domestic spending growth slowing Housing slow down manageable ype Which Bank ConmonwealthGark 17
Slide 18: 2005 outlook - Bank
2005 outlook - Bank Subject to current market conditions continuing: # Over the three years 2004-2006 we will deliver: Cash EPS growth exceeding 10% CAGR 4-6% CAGR productivity improvements Profitable market share growth across major product lines Increases in dividend per share each year « Signific
Slide 19: Overall summary
Overall summary # Results — very good « Which new Bank — meeting expectations « Staff — enthusiastic, participating and engaged « Outlook — positive for the Bank yet Which Bank ConmonwealthBark « 19
Slide 20: Full Year Results - Presentation to Media
Full Year Results Presentation to Media David Murray Chief Executive Officer 11 August 2004 non Which Bank www.commbank.com.au
Commonwealth Bank of Australia — FY2004 Earnings Presentation on 6ix