Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Merrill Lynch Australasia Investment Conference 2004
23 slides from Commonwealth Bank Of Australia's conference presentation, Sep 27, 2004
Slide 1: Investor Roadshow / Merrill Lynch Australasia Investment Conference
Investor Roadshow / Merrill Lynch Australasia Investment Conference Michael Cameron Chief Financial Officer Commonwealth Bank of Australia September 2004 www.commbank.con.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, 27 September 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
Slide 3: Agenda
Agenda » Overview of business » Full Year June 2004 results » Which new Bank » Outlook oe ‘py Which Bank Conmonwealthiak <y , I'd like to talk about four subjects today. Firstly, I'd like to give an overall picture of the Commonwealth Bank. Then, I'd like to focus on the full year 2004 results — whi
Slide 4: Overview of business
Overview of business Banking Largest Australian retail bankwith.over 8 million retail customers No.1 in retail deposits, Not in fome: lending Over 1,000 branches, .arolind 4,000 agencies and 3,000 ATMS Strong positions:in each segment of business banking Funds Management No.1 in retail: FUM Tier 1 t
Slide 5: Economy - global comparisons
Economy - global comparisons Major Countries’ Policy Interest Rates Real GDP Py % Year-ended percentage change Auistralicn rn 4 1 1 EDM LS OM TS OWT EB OMS Uneraployraent Rate 18 18 * » a0 New foalznel 10 2 SRS 1” x 10 a - ala) 6 — — ir & we pe af afe: . 0 ing ‘ 0 Jeena slaw Japan 6 ar] 5 6 a ee 4 4
Slide 6: Economy - credit growth and housing
Economy - credit growth and housing Credit by Soctor” “Year envied priceniage change Housing Loan Approvals” % % 2 A $ 14 4} tig Housing Taf ran a 2 di i 12 \ i 0 19 NM wr uh jd wr s SH 10 4 8 % 4 "ae is ‘iy uf eslaltiahescd Koworat 2 ae: i 6 costa « i sy ; : = 6 4 4 We : ; eae , ph 0 ° 1 1902 1804
Slide 7: A very good annual result
A very good annual result (year to 30 June) 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 45.1 Which Bank Conmorwealthar & 7 * Headline figures: * Very good result * Covered Which new Bank investment through underlying pro
Slide 8: 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: refiects strong performances of retail operations Funds Management: benefited from strong investment markets Insurance:
Slide 9: Largest dividend increase ever
Largest dividend increase ever Increase 2004 2003 % « Dividends per share 183c 154¢ 19 # Payout ratio (cash basis) 89.1% 75.9% Dividend (cents per shat) nn es " oe wo | (18 15 nr alll i Eafirsi wail me Seocna Halt ] Which Bank ConmonwealthSank & 5 * The result: largest increase in dividend ever, hav
Slide 10: 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) 8 EPS figuro is post prafaronce share dividends of $
Slide 11: Which new Bank
% Which’ aml ne Bank * Moving to Which new Bank update 1]
Slide 12: Reminder — three service transformation themes
Reminder — three service transformation themes upported Through b g by Customers are saying: “Know me, give me what | want and do it reliably” Which Bank Conmonwealthir: @ » * All familiar with this diagram * Posters on the walls of most of our offices and branches * Constantly part of our thinking
Slide 13: 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 * Insummary, after 9 months we're: + Completing m
Slide 14: 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 = tt tor ter : everything we do Continuous reinforcement of service behaviours Implementing Bank-wide approach to leads and referrals J
Slide 15: We are changing the way we do things - streamlining processes
We are changing the way we do things - streamlining processes oo Turn around time improvements Viewing processes from the customer's scttarrart | 0% perspective sevnunis 11 days to 2.6 days Emphasis on training cast and continuous sees : improvement B hours to 6.6 hours Aiming for 15% foo 50% effici
Slide 16: We are changing the way we do things - IT Efficiency and Procurement
We are changing the way we do things - IT Efficiency and Procurement Example: Mainframe processing efficiencies Key IT services “400 21200) reviewed Systematic approach to all procurement being implemented Hours used Targeting efficiency savings >$100m pa Mar-04 Apr-04 May-04 dun-04 Month & Hours re
Slide 17: We are changing the way we do things - Performance Culture and engagement
We are changing the way we do things - Performance Culture and engagement Leading by 2004 Gallup Workplace survey example Reinforcing ‘ behaviours as well as outcomes 22 Staff have been ° significantly * engaged ° throughout 1999 2001 2003 2004 Which new Bank Performance culture and engagement, the
Slide 18: Our customers - relationship is strengthening
Our customers - relationship is strengthening Strength of relationship is building Strength of relationship Rigorous monitoring of customer service 6.1 6.1 Score standards Results are : i : r encoura gi n 9 Apr-Jun 03 Jul-Sep 03 ‘Oct-Dec 03 Jan-Mar 64 Apr-Jun 04 Time Which Bank CommonweaithBak a 16
Slide 19: 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 Every
Slide 20: 2005 outlook - Economy
2005 outlook - Economy Global Noticeable improvement Expected monetary tightening Domestic Continued good performance Domestic spending growth slowing Housing slow down manageable whict'Bank Commonwealth Bank & 20 Global Noticeable improvement (around 4% pa expansion) Expected monetary tightening Do
Slide 21: 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 22: Overall summary
Overall summary > Results — very good > Which new Bank — meeting expectations » Staff — enthusiastic, participating and engaged » Outlook — positive for the Bank A good result for shareholders, staff and customers * Shareholders and staff through dividend * Staff seeing their contribution producing
Slide 23: Investor Roadshow / Merrill Lynch Australasia Investment Conference
Investor Roadshow / Merrill Lynch Australasia Investment Conference Michael Cameron Chief Financial Officer Commonweaith Bank of Australia September 2004 www.commbank.com.au 23
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