Westpac Banking Corporation · ASX:WBC
Westpac Banking — Citigroup Australia and New Zealand Investment Conference 2004
16 slides from Westpac Banking's conference presentation, Mar 9, 2004
Slide 1: Westpac – Australia's First Bank
AIfestpac Australia’s First Bank Citigroup Australia and New Zealand Investment Conference ~ David Clarke Chief Executive Officer — BT Financial Group March 2004
Slide 2: Westpac at a glance
Westpac at a glance * Established 1817 * Top 100 bani ey June 2003 arnings basis Citigroup Aust & NZ Investment Conference — Mar 2004
Slide 3: Driving the gap between revenue and expenses
Driving the gap between revenue and expenses $m 4,000 5 | 3,500 4 4 Year CAGR' | 3,000.4 —@ Revenue 7.5% 2,500.7 lil Expenses? 3.5% tk Core earnings 12.5% sh we we 1._ Underlying basis (excl. significant items) ye Re ee 2. Excluding goodwill Citigroup Aust & NZ Investment Conference — Mar 2004
Slide 4: Points of differentiation
Points of differentiation * Strategy ~ Focused on core markets of Australia, New Zealand and near Pacific ~ Customer centric organisational structure ~ Balanced wealth management position * Customer franchise ~ Large customer base skewed towards higher value segments ° Low risk ~ Continued improveme
Slide 5: BT Financial Group
BT Financial Group ° Investment consistent with the Sept 2003 size of the wealth management opportunity Cash earnings $190m * Modern wealth management Funds under mgt $43bn operation Assets under admin $13bn - Funds management in-force premiums $251m - Life insurance and risk - Wrap and corporate Co
Slide 6: BT — our competitive position
BT — our competitive position Current market share business Market Market Product share (%) | Rank share (%) Rank Broking * impact on market share and rank due to large transfer of administration of AMP investment Solutions to ASGARD in Dec 2003 Sources: Retaii& Wrap & Mtrust - ASSIRT February 2004
Slide 7: Meeting the challenges
Meeting the challenges e Integration e Investment management performance ° Retail outflows e Leveraging distribution ¢ Maintain momentum in core businesses Citigroup Aust & NZ Investment Conference — Mar 2004
Slide 8: Integration — nearing completion
Integration — nearing completion ¢ Insulated core business from integration task integration progress People & . . Location _ * Dedicated project ae management resource Stee ¢ Resolved key people, Customer Contact roles and location es : . Investment issues quickly Management e Synergies ahead of pl
Slide 9: Fund performance and outflows
Fund performance and outflows ¢ New team in place quickly * Strict adherence to investment management disciplines with a focus on risk * Built transparency and accountability into process ¢ Active communication with research houses Citigroup Aust & NZ Investment Conference — Mar 2004
Slide 10: The benefits are now appearing in results
The benefits are now appearing in results Excess investment returns Australian equities 6% 1.5% > r 4% rp 2% +.0% f -2% tp -4% 76% 8% Gy Se iG DP PPD PD BY OT ON QTD DL? HO? OH we KS & we ye Sok Ro) = MMi Monthly excess return(LHS) = One year excess return (RHS) 10 Quarterly retail funds flows $m :
Slide 11: Leveraging the Westpac customer base
Leveraging the Westpac customer base * Sub-optimal cross sell ° Under resourced internal financial planner and advice (FP&A) network - Internal review underway * Corporate super already achieving significant wins Citigroup Aust & NZ Investment Conference — Mar 2004
Slide 12: Maintained focus on core businesses
Maintained focus on core businesses * Integration has not Wrap funds under-administration | distracted broader $bn Westpac group 10 * Momentum in funds under administration continues * Life and risk business growing well above existing share ee UNO a OO NN Citigroup Aust & NZ Investment Conference —
Slide 13: The strategy going forward
The strategy going forward * Complete integration ¢ Maintain investment management disciplines e Increase focus on customer responsiveness ° Fully leverage the Westpac group planners 13 Citigroup Aust & NZ Investment Conference — Mar 2004
Slide 14: Credit growth
Credit growth Australian Credit Growth — | % : 5 Forecasts (245 ay 24 20 | \ 20 16-4 NY 16 124 r 42 87 [ponte 83 44 +4 05 -0 As L adh 8 ee . ———— 8 Jan-90 Jan-92 Jan-94 dan-96 Jan-98 ... Jan-00 Jan-02 Jan-04 — Housing —— Business —Total -----»-Total period average Source: RBA Citigroup Aust & NZ Inv
Slide 15: Westpac's on track
Westpac’s on track * BT Financial Group - Business in excellent shape - Integration on track, with higher synergies - Tapping power of the Westpac customer base * Economic environment remains favourable * Housing market beginning to soften * Outlook for Westpac remains positive 16 Citigroup Aust & N
Slide 16: Disclaimer
Disclaimer The material contained in this presentation is intended to be general background information on Westpac Banking Corporation and its activities as at 9 March 2004. The information is supplied in summary form and is therefore not necessarily complete. Also, it is not intended that it be rel
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