Bendigo & Adelaide Bank Ltd. · ASX:BEN

Bendigo & Adelaide Bank — Bendigo Bank — FY2003 Earnings Presentation

39 slides from Bendigo & Adelaide Bank's earnings presentation, August 2003

1. Slide 1: 2003 profit announcement

   2003 profit announcement Craig Langford Chief Financial Officer Mike Hirst Chief General Manager Strategy & Solutions Rob Hunt Group Managing Director

2. Slide 2: Financial results

   Financial results Craig Langford Chief Financial Officer

3. Slide 3: Continuing momentum

   Continuing momentum „ Profit increased by 21% to $59 million „ Earnings per share up by 14% to 46.8 cents „ Continuing business growth „ Solid asset quality „ Final dividend up 3.0 cents to 20.0 cents „ Full year dividend increased 4.5 cents to 33.5 cents

4. Slide 4: Performance summary

   | © Bendigo Bank | Performance summary Net profit after Income Tax Return on Average Assets Return on Average Equity Earnings per Share Expense to Income Ratio Year end Assets Year end Capital General Provision d/debts

5. Slide 5: Operating profit - after tax

   | © Bendigo Bank | Operating profit - after tax AS Millions 70 60 50 40 30 20 10 2002 Normalised

6. Slide 6: Net interest margin

   | © Bendigo Bank | Net interest margin 3.00 2.80 2.60 2.40 2.20 2.00 % 2000 2001 2002 2003

7. Slide 7: Non interest income at 30 June 2003

   Non interest income at 30 June 2003 $124.3m

8. Slide 8: Contributions

   | @ Bendigo Bank | Contributions = o A$ Millions OrFPFNWHK UT DN WO OO

9. Slide 9: Efficiency ratio Operating expenses / income

   Efficiency ratio Operating expenses / income

10. Slide 10: Total assets

    | © Bendigo Bank Total assets A$ Millions 12,000 10,000 8,000 6,000 4,000 2,000 Managed

11. Slide 11: Lending approvals

    | © Bendigo Bank Lending approvals 4$ Millions 6,000 5,000 4,000 3,000 2,000 1,000 0)

12. Slide 12: Retail deposits

    | © Bendigo Bank Retail deposits A$ Millions 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000

13. Slide 13: Commercial loans at June 2003

    Commercial loans at 30 June 2003 ($1446m)

14. Slide 14: Loan portfolio

    Loan portfolio By purpose By security

15. Slide 15: Geographic spread

    Geographic spread Deposits Loans

16. Slide 16: Non-accrual loans

    | © Bendigo Bank | Non-accrual loans 4$ Millions 30 27.2 28.3 25 2002 Net Non Accural

17. Slide 17: Asset quality Impaired loans / total assets

    Asset quality Impaired loans / total assets

18. Slide 18: Provision for doubtful debts

    Provision for doubtful debts

19. Slide 19: Capital adequacy

    | © Bendigo Bank Capital adequacy 14 12 10 % ON ££ DD Ww 2000 2001 2002 2003

20. Slide 20: Return on equity

    Return on equity Return on equity has been restated in prior periods to reflect the impact of accounting standard AASB1044

21. Slide 21: Earnings per share

    l © Bendigo Bank Earnings per share cents 50 40 30 20 10

22. Slide 22: Wealth Management, Co. structure & alliances

    Wealth Management, Co. structure & alliances Mike Hirst Chief General Manager Strategy & Solutions

23. Slide 23: New structure driving organisation

    New structure driving organisation „ Two distinct focuses: - Retail (customer and community contact) - Solutions (build and deliver products to Retail) „ Strategic initiatives team under M.D. „ New focus on cards business „ Group delivery of shared services „ Strategic redesign of I.T. „ Unified Wea

24. Slide 24: Wealth Management

    Wealth Management „ A complementary financial services product range „ All entities under the one banner „ Distribution and partnerships „ STL responsible entity for funds management „ Specialist investment managers (eg. IML, IOOF) „ Easily understood fund offerings „ Expanded financial planning bus

25. Slide 25: Funds under management

    | © Bendigo Bank Funds under management A$Millions 2001 2002 Sandhurst Mortgage & Cash Funds 863.0 952.0 Sandhurst Industrial Share Fund 30.2 153.3 Bendigo Superannuation Plan 73.7 103.6 General Retirement Plan - 53.1 Other Superannuation Funds - 8.2 Premier Global Select Fund - ne Bendigo Managed F

26. Slide 26: Wealth Management contribution

    Wealth Management contribution

27. Slide 27: Proven ability with alliances

    Proven ability with alliances Community Bank® „ 43% increase in business „ $8.4m contribution „ 100th branch opened (30 launched in 2002/03) „ BBL granted Community Bank® trademark Tasmanian Banking Services „ $117m growth ($245m portfolio) „ 5 branches and 14,000 account-holders „ Profitability now

28. Slide 28: Proven ability with alliances

    Proven ability with alliances Pharmacy Banking „ $113m portfolio „ New origination partners signed Elders Rural Bank „ $19m net profit after tax „ $136m of business referred to ERB from Bendigo Agencies „ 20% growth in business Community Sector Banking „ $33.3m portfolio

29. Slide 29: Strategy, performance & the future

    Strategy, performance & the future Rob Hunt Group Managing Director

30. Slide 30: Consistent strategy since 1995

    Consistent strategy since 1995 Mission Statement We focus on building and improving the prospects of our customers, communities and partnerships in order to develop sustainable earnings and growth for the business and thus provide increasing wealth for our shareholders “Successful customers and succ

31. Slide 31: Bendigo style of banking

    Bendigo style of banking „ Differentiate and build strong brand & position „ Create strong commitment to buy „ Blend face-to-face and technology to deliver banking solutions with a strong customer focus „ Open new markets „ New products to strengthen relationships “Building the capacity of the buyin

32. Slide 32: Value created

    Value created Over the past 3 years, Bendigo Bank has been 29th best value creator in the Australian market (16th over 5 years). Maintaining this momentum improves the prospect of further increasing value as the performance improves (as planned).

33. Slide 33: Creating shareholder value by:

    Creating shareholder value by: „ Rapidly expanding distribution and product range „ Growing revenue sustainably (buyer commitment) „ Progressively building profitability „ Establishing a strong brand, positioning, identity „ Align objectives with our buying base „ Improving efficiency „ Continuing i

34. Slide 34: In 5 years, Bendigo has:

    In 5 years, Bendigo has: „ Increased profit by 315% „ Grown market value by 447% (now $1 billion) „ Improved EPS by 61% „ Tripled branch numbers to 251 „ Tripled assets under management „ Successfully launched ‘C-commerce’ initiatives „ Generated strong growth in interstate business „ Invested heavi

35. Slide 35: Successes in 2003

    Successes in 2003 „ Improved profit performance by 20% „ Increased EPS and DPS „ Strong retail deposit growth continues „ Strong lending and asset growth continues „ Improved contribution from new businesses „ Improved asset quality „ Strong contribution by all subsidiary companies

36. Slide 36: Investments continued in 2003

    Investments continued in 2003 „ Grew Wealth Management in difficult market „ Continue to enhance risk management „ Opened 37 new branches „ Continued to grow skill base „ Building community capacity to enhance markets „ Implementing continuous improvement strategy „ Grew business banking capability

37. Slide 37: Why our progress will continue

    Why our progress will continue „ ‘The emotional key’ - unique position, strong customer focus (strong approval and advocacy ratings) „ Strong demand for Bendigo solutions „ Increasing contribution of new businesses „ Wealth Management revenue growth „ Great team aligned to strategy and ‘C-commerce’

38. Slide 38: The future

    The future „ Further network growth (30-plus branches) „ New communities and customer groups „ Expand Wealth Management and advice „ Growing business banking volumes „ Strong e-bank growth and new facilities „ Solid increase in revenue base expected „ Further improved profitability and performance

39. Slide 39: Questions

    Questions Bendigo Bank 2002/03 profit announcement

Bendigo Bank — FY2003 Earnings Presentation on 6ix