Westpac Banking Corporation · ASX:WBC
Westpac Banking — Credit Suisse First Boston Asian Investment Conference 2003
21 slides from Westpac Banking's conference presentation, Mar 27, 2003
Slide 1: Credit Suisse First Boston Asian Investment Conference 2003
VTi | Aust alate First Bank Credit Suisse First Boston . Asian Investment Conference 2003 David Clarke Chief Executive Officer | oe : - BT Financial Group March 2003 ~
Slide 2: Westpac at a glance
Westpac at a glance * Established 181 7 i : : . Sept * Top 100 bank globally. S 2002 oo B year EPS CAGR 11% * Core markets of - | Return on equity 21% Australia, New Zealand | Dividend yield 51%, and near. Pacifi ic ; ; | Total assets A$191bn °* 7.5 million customers | Market cap? A$26bn * Leader in
Slide 3: Low risk profile
Low risk profile * Focused on core markets * Diversified, low risk, lending portfolio * Strong asset quality and excellent provisioning coverage * Right size/composition wealth management business * Significantly de-risked income streams in 2002 * Strong cash flow generation CSP Asian Investment Con
Slide 4: Rebalancing the business mix
Rebalancing the business mix AGC divestment - Low growth/higher risk SO business . Rothschild acquisition ~ | Rated funds and a es . _ | distribution Hastings acquisition Infrastructure expertise : BT Financial Group. Platform and product acquisition. capability, funds scale CSPS Asian Investment Co
Slide 5: The New BT Financial Group
The New BT Financial Group * $43 billion in funds under management * 5th largest retail fund manager in Australia * Largest Wrap platform provider ¢ 8h largest corporate super provider * 2"¢ largest margin lender * Broad distribution reach GSES Asian Investment Conference 2003
Slide 6: Wealth management — capability across value chain
Wealth management — capability across value chain 7.5 Million 670 Leading Broad Core Outsourced Westpac Westpac wrap, product Australian partners for customers | planners & | margin range equites style | custody Access to advisers lending and Proven External Centralised corporate ae . non- Over supe
Slide 7: Integration strategy
Integration strategy Management team in early Specialist project management skills applied Integration separated from core business Program well advanced prior to settlement Progressive delivery of results CSEB Asian Investment Conference 2003
Slide 8: Integration progress
Integration progress Sep 02 | Dec 02 |Mar 03] Jun03.| Sep 03° People | tae investment management Products systems oe CSFB Asian Investment Conference 2003
Slide 9: Synergies now higher
Synergies now higher Progressive synergies identified ($m) | Expected 2003 synergies by aS . opportunity area 1205 0. rpeeraerreet (##) = % of project complete : i Synergies initially. estimated at Aug 02 Le 100-5 0 a f Executive ~ ® Current expected resticture go | .. Synergies 7 Other projects oe
Slide 10: BT Value — sensitivity analysis
BT Value — sensitivity analysis * At acquisition, $900m consideration equated to 81% of assessed value * Present value of additional synergies identified ~ $230 million — $37million p.a. in additional ongoing synergies — $27 million in additional one-off costs to extract synergies ¢ Additional value
Slide 11: Strategic priorities
Strategic priorities Dedicated Premium Wrap to Partner Process Rationalise retention conference | internal series enhancement | providers stream Advisor planners Alliance in Austalian Remove Brand roadshows | New client partner equities duplication campaign Financial infiltration marketing Strengthe
Slide 12: Investment management strategy
Investment management strategy * Manufacture internally where we have skill and can create value — Australian equities/fixed interest/cash * Active, core investment management style - proprietary research - sophisticated risk tools - seeking multiple sources of alpha - targeting high information rat
Slide 13: Investment management performance
Investment management performance Australian equities 1-year rolling performance. : 4% 8%. 3%, r 6% 2% t 4% 77 OD 81% p 2% & = > 0% + 0% & = : _ S 1% r 2% 2 = 3 ~2% r -4% oO . ZB Monthly excess (LHS) : -3% — Rolling annual excess (RHS)| /00 oT 6% ; -4% : - ae -B% Jan 98 Jan 99 0 dan.00 Jan 01." Jan
Slide 14: Wrap — a key competitive advantage
Wrap — a key competitive advantage * Investment and superannuation administration service * ‘Wraps around’ a portfolio of cash, shares and managed funds * Scaleable on-line platform | : Deloitte Portfolio * Adviser tool: - Eliminates low value activities - Assists provide advice and | strengthens re
Slide 15: Wrap — fastest growing sector in the market
Wrap — fastest growing sector in the market BT Wrap funds under administration |: ° BT market share 10. 3%" a os 54. “9 —-—_-_ a_i 1 a | uh PPLE ES PEEEEES SESS ooo -=“4 “ASSIRT Wrap and Master Funds Dec 2002 $ billion f. CSEB Asian Investment Conference 2003
Slide 16: Wealth management - measuring success
Wealth management - measuring success Integration - Achieving key milestones - Delivering synergies Restoring fund inflows Continued growth in Wrap market share Leverage Westpac’s 7.5 million customer base CSE Asian Investment Conference 2003
Slide 17: Westpac — year to date
Westpac — year to date * System credit growth continues ahead of expectations ¢ Risk weighted asset growth boosted by $NZ appreciation ¢ Asset quality improved ¢ Banking businesses in Australia and New Zealand in excellent shape ¢ Wealth management performance impacted by sector trends CSEB Asian In
Slide 18: Credit growth trends
Credit growth trends Australian credit growth - : % ann ~ 24 4 -8 T La T T T “| T Te ~ T T T T -8 dan-90 -> > Jan-92 Jan-94 0 Jan-96 > Jan-98 9 Jan-00.-"Jan-02 > — Personal — Housing -—- Business. —Total Source: APRA ( Sustraliats Dek Banke CSEB Asian Investment Conference 2003
Slide 19: Looking ahead
Looking ahead * In November 2002, we articulated our expectation for cash EPS* growth of 7% - 9% in 2002/03 * Given global uncertainties, the balance of risks at the time was on the downside * To date, downside risks have yet to materialise * Core businesses continue to perform well # Cash earnings
Slide 20: Credit Suisse First Boston Asian Investment Conference 2003
VTi | Aust alate First Bank Credit Suisse First Boston . Asian Investment Conference 2003 David Clarke Chief Executive Officer | oe : - BT Financial Group March 2003 ~
Slide 21: Disclaimer
Disclaimer The material contained in the following presentation is intended to be general background information on Westpac Banking Corporation and its activities as at 27 March 2003. The information is supplied in summary form and is therefore not necessarily complete. Also, it is not intended that
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