Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — UBS Sixth Annual Australian Financial Services Conference (June 2007)
13 slides from Bendigo & Adelaide Bank's conference presentation, Jun 21, 2007
Slide 1: UBS Sixth Annual Australian Financial Services Conference: Acquisitions or Organic Growth?
UBS Sixth Annual Australian Financial Services Conference Acquisitions or Organic Growth? Mike Hirst Chief Operating Officer Bendigo Bank Group © Bendigo Bank Knowing the way forward
Slide 2: Our approach to growth reflects our Strategy...
Our approach to growth reflects our Strategy... A disciplined application of a branded retail strategy A strong, differentiated reputation and brand Quality customer service - An ability to undertake collaborative commerce Discipline to build gradually, as capital allows Knowing the way forward © Be
Slide 3: ...and our view of the market going forward.
...and our view of the market going forward. « Inthe short term: - market share driven - areturn to customer-centric values - branches are back! - further commoditisation and margin contraction ¢ In the medium term: - networks no longer transaction based - trusted advice is important and valued - hi
Slide 4: We have a range of opportunities
We have a range of opportunities * Organic - customer acquisition - maturing of an expanding branch network - deepening customer relationships ¢ Partnerships and alliances - import products for distribution - provide new market opportunities ¢ Acquisitions - experienced in implementing M&A - for new
Slide 5: We consider our Strategic Intent...
We consider our Strategic Intent... Services Organisation” “Retail Distribution Financi =inancial Services MANUFACTURE WHY > o O esojoum ff CORE VALUE ADD nancial Services “ Knowing the way forward © Bendigo Bank
Slide 6: ...in deciding our approach.
...1N deciding our approach. EXTERNALLY OWN & oO SOURCE CONTROL 5 | LLI -— < o oD | EXIT INVEST FINANCIAL Knowing the way forward © Bendigo Bank
Slide 7: Bendigo's Platform for Growth
Bendigo’s Platform for Growth Focus of Recent Years Investment in network Building goodwill, brand and customer base Costs have expanded to deliver the infrastructure Focus on customer acquisition rather than share of wallet Business growth has delivered 10%+ EPS growth Significant Potential Preserv
Slide 8: Customer acquisition continues...
Customer acquisition continues... * Customer advocacy and customer satisfaction highest in industry on surveys including: - Net Promoter Scores - Bain-Leading Edge 50% - Nielson 40% - Roy Morgan ...and there is great scope for relationship growth. 60% 30% 20% ¢ Ranked # 1 choice for customers lookin
Slide 9: Network focused on sales & service
Network focused on sales & service Moved to state-based management Increased number of Regional Managers RM’s responsible for: - Company and community branches - Business Bankers - Financial Planners Community engagement central to branch development Knowing the way forward © Bendigo Bank
Slide 10: Community Bank Growth
Community Bank Growth Deposits per Community Bank branch CAGR 20.3% ‘Age of branch in years Loans per Community Bank branch CAGR 25.6% Knowing the way forward Age of branch in years © Bendigo Bank
Slide 11: Wealth Management
Wealth Management *The Bendigo Wealth Solutions division contributed $51m in revenue and $25m before tax in 2006 «Based on median P/E of listed wealth management companies (19x '07F) Bendigo’s wealth business is worth around $340m «Continued programme of “home-grown” advisers «Fund offerings remain
Slide 12: Partnerships and alliances
Partnerships and alliances Elders Rural Bank Tasmanian Banking Services Homesafe Solutions Strategic Payment Systems Community Enterprise companies Community Sector Bank Knowing the way forward © Bendigo Bank
Slide 13: In conclusion, Bendigo...
In conclusion, Bendigo... * Is well positioned to grow organically - very strong brand and high customer advocacy - strong customer acquisition - national (but immature) branch network - significant wealth management investment ¢ Has a proven ability to grow the business through partnering and colla