National Australia Bank Limited · ASX:NAB
National Australia Bank — Investor Presentation (February 2003)
33 slides from National Australia Bank's investor presentation, Feb 24, 2003
Slide 1: Corporate & Institutional Banking
Living our Core Values Investor Presentation Corporate & Institutional Banking lan Scholes, Executive General Manager February 2003 National
Slide 2: Presentation Outline
Presentation Outline Living our Core Values Page 4 Strengths 16 - 23 o. Strategies / Initiatives 25 - 31 6. Questions 32 National
Slide 3: 1. Profile
Living our Core Values 1. Profile National
Slide 4: Organisational Structure
Organisational Structure RISK MANAGEMENT TBA EXECUTIVE GM lan Scholes FINANCIAL INSTITUTIONS Shaun Dooley en we Living our Core Values CREDIT RISK Greg Targett — Regions ~~ Global Product Groups — Support National 3
Slide 5: Client Group and Product Set
Client Group and Product Set Regional Management Customer Set Product Set Living our Core Values FISE 750 Selected Corporates Corporates Selected Corporates Loans * Interest Rate Syndications Currency Debt Capital Markets Commodity Securitisation Equity Derivatives Project Finance Credit Derivatives
Slide 6: CIB’s Contribution to the Group
CIB’s Contribution to the Group Living our Core Values Financial Measure CIB % of Year to Sept 30, 2002 | NAB Group Total Income Net Profit after Tax Total External Assets Staff numbers 240i Y%National
Slide 7: Income Sources
Income Sources Income by Product Spec. Finance - 8% Other - 2% Custody -— 8% ‘MM ~ 25% Living our Core Values Income by Region Asia -7% Australia — 48% America — 11% Europe — 24% NZ — 10% National
Slide 8: 2. Stocktake of Business - 2002
Living our Core Values 2. Stocktake of Business - 2002 National
Slide 9: Net Profit After Tax
Net Profit After Tax Living our Core Values Compound Growth of 12% pa 1999 2000 2001 2002 National
Slide 10: Income
Income HN Living our Core Values ASM Corporate & Institutional Banking $1,100) Income $1,0007 $900 4 $8004 $7001 $600> 1H 99-00 2H99-00 1H00-01 2H00-01 1H01-02 2H01-02 9
Slide 11: Business Status - 2002
Business Status - 2002 Living our Core Values =» Flat revenue = Tightening of National’s risk philosophy = Reduced Interest Rate and FX volatility = Uncertainty in regional operations =" Credit risk management = Focus on internal issues National 10
Slide 12: 3. Market Position
Living our Core Values 3. Market Position National
Slide 13: Australian Corporate Banking Market Penetration
Australian Corporate Banking Market Penetration Living our Core Values 100% 80% 60% 40% 20% 0% ANZ Westpac NAB CBA Citigroup eB Percentage of Corporates surveyed who use Corporate Banking Services of the relevant institution. Source: Greenwich: Large Corporate Banking Survey May 2002 National 12
Slide 14: Australian Structured Finance Market Penetration
Australian Structured Finance Market Penetration Living our Core Values 60% 50% 40% 30% 20% 10% ANZ Westpac NAB CBA Citigroup | Percentage of Corporates surveyed who use Structured Finance Services of the relevant institution. Source: Greenwich: Large Corporate Banking Survey May 2002 National 13
Slide 15: Australian Transactional Banking Market Penetration
Australian Transactional Banking Market Penetration Living our Core Values 50% 40% 30% 20% 10% bi ANZ Westpac CBA NAB Citigroup St George 0% Percentage of Corporates surveyed who use Primary Transactional Banking Services of the relevant institution. Source: East & Partners: Top 500 Survey November
Slide 16: 4. Strengths
Living our Core Values 4. Strengths National
Slide 17: Strengths
Strengths Living our Core Values =" Client Base =» Size and “AA” Credit Rating = International Presence = Credit Culture and Market Risk Management = Risk Management Services National 16
Slide 18: Strengths
Strengths Living our Core Values = Commodities Expertise = Securitisation and Structured Finance Expertise " Derivatives Expertise = Leader in A$ Debt Markets No 1 Australian Custody = Distribution Network National 17
Slide 19: Asset Quality Excellent - Portfolio on average is BBB+
Asset Quality Excellent - Portfolio on average is BBB+ Living our Core Values Investment / Sub Investment Grade Average Rating for Committed Facilities Distribution 100% == A- 90% 4 80% BBB+ 70% 60% BBB Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun02 Sep-02 focafda ae ih | Mar-01 Jun-O1 =Sep-01 Dec-01 Mar-
Slide 20: Asset Exposure by Region
Asset Exposure by Region Living our Core Values Committed Lending Exposures by Region at December 2002 Asia 4% Europe Australia 23% 42% USA 19% New Zealand 12% National 19
Slide 21: Asset Exposure by Industry
Asset Exposure by Industry Living our Core Values Committed Lending Exposures by Industry at December 2002 ; Industrials, Materials & Healthcare 17% Financial Property & Construction Institutions 5% 36% Other 15% Telecom, Media & Technolo Energy & tv Utilities 9% Consumer Goods & Services 0, ° 14% Y
Slide 22: Market Risk Management Framework is Strong
Market Risk Management Framework is Strong Living our Core Values = Market Risk teams independent = Approves new products and activities $60m of Board approved limit of $80m VaR allocated = Only 6 days where a trading loss recorded (largest loss $1.3m) No large position taking 86% of market risk exp
Slide 23: Examples of Major Transactions
Examples of Major Transactions Gua Living our Core Values TEs Heel wipuae oo ls A eon a Tac vannon tin ISTO ar oC Tis ena ORDO oH PT COT Tis aroimennt appear at Tard ol Fy swig Credit Union Services C Hon {As Lite " i 3) Le ; mee ‘4$200,000,000, en tases) Military Super Mediin Australia Pty Limited
Slide 24: Awards
ns Awards Living our Core Values Structured Deal of the Year - Medical Finance Series iNSTO Annual Distinction Awards, December 2002 No 1 in corporate bond league tables for 2002 and second consecutive year Bloomberg, INSTO and Thomson Financial THOMSON PFI Corporate Bond Issue of the Year - Wesfarm
Slide 25: 5. Strategies/Initiatives
Living our Core Values 5. Strategies/ Initiatives National
Slide 26: New Vision and Operating Framework
New Vision and Operating Framework Living our Core Values " Continued Profit Growth: “Growth through excellent relationships” " Bea key part of “Integrated Financial Services” « Reputation: “Best and Smartest” Magnet for Talent: “The place everyone wants to work” Revitalize culture: “Living our Core
Slide 27: Strategies/Initiatives Implemented 2002
Strategies/Initiatives Implemented 2002 Living our Core Values = Leadership and People = Re-emphasized “client based” Sales Culture = Strengthened relationship with Credit Risk Management = Clarified role of Regions = Increased focus on Product Development = Dynamic Portfolio Management National 26
Slide 28: Strategies/Initiatives 2002 - Leadership and People
Strategies/Initiatives 2002 - Leadership and People Living our Core Values Leadership Team Re-organized — Behaviour Based - Regional Structure Values Established Culture of “Best & Smartest” New Appointments - Project Finance - Transactional Banking — Corporate Structured Finance - Client Directors
Slide 29: Strategies/Initiatives 2002 - Values Campaign
Strategies/Initiatives 2002 - Values Campaign ps ¥ 27/7) Me _ Living our Core Values TELE ye Lo WEY yi V7 a rrr—<—~—srsssesses—ssSS ii YE LE AL TL EME ENED Be LENE AOE SEDULDEDU SEA NEL NU DUCLODDDDUINE MOND i TA WO +4 i iC Cy i LhLrhrrrLrLrLrrrLrLrrrLrLrrCUCCCrCrCUCUCrCrCrLCUrUrLULUCLULUrUrLrLULUrL
Slide 30: Strategies/Initiatives Implemented 2002
Strategies/Initiatives Implemented 2002 Living our Core Values = Leadership and People = Re-emphasized “client based” Sales Culture = Re-invent relationship with Credit Risk Management = Clarified role of Regions = Increased focus on Product Development = Dynamic Portfolio Management National 29
Slide 31: Key Characteristics of the 2003 Plan
Key Characteristics of the 2003 Plan Living our Core Values = Difficult trading environment Client based income growth Growth in underlying profit = Strong lending growth — maintain asset quality Grow NPAT in line with Group objectives National 30
Slide 32: Ongoing Strategies
Ongoing Strategies Continue to:- - Strengthen “Client Based” Sales Culture - Streamline the Credit process — Focus on International growth — Invest in training Harness Distribution Capabilities — Integrated Financial Services Invest in Transactional Banking Product 75 mini projects focused on:- — Ne
Slide 33: 6. Questions
Living our Core Values 6. Questions National
National Australia Bank — Investor Presentation (February 2003) on 6ix