Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Investor Presentation (February 2004)
24 slides from Commonwealth Bank Of Australia's investor presentation, Feb 11, 2004
Slide 1: Which new Bank Progress Update
Y, Be x ve | Da 2 Which Bank Progress Update David Murray Chief Executive Officer 41 February 2004 www.commbank.com.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, 11 February 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: Speaker's Notes
Speaker’s Notes » Speaker's notes for this presentation are attached below each slide. » To access them, you may need to save the slides in PowerPoint and view/print in “notes view.”
Slide 4: Strategic rationale
ee: i IDE IE EEE EE IEE EE Strong business mix Extensive distribution footprint = Large customer base -Leading brand Superior EPS growth « Competitive | superiority » Service transformation ConmonwealthBak 2% 4 « A reminder of the strategic rationale * In an environment with:- + Margin pressure * In
Slide 5: To excel in customer service
Ww EPR he FE CAE EEE BE ECA RENEE ‘To excel in customer service’ Through Supported : by . » Service/Sales (4) : Performance Culture (1) Support (1) Effectiveness Process/product (3) : ET Enablers (2} IT Efficiency (2) : Distribution Efficiency (3) « Purchasing (2) » Product (2} () = Number of workst
Slide 6: Which new Bank milestones
Which new Bank milestones Centre for Adviser Development - launct Service & Sales management - 13,000 staff Branch sales effectiveness - 3,000 staff CommSee - Launch in Tasmania Branches - refusbish +25 Business banking redesign - complete Queue management - implement new approach Enhanced FirstChoi
Slide 7: Progress report on activities
Progress report on activities Customer Service * S/S Effectiveness « IT Enablers * Distribution Efficiency * Product Engaged People * Performance Culture 1 Simple Processes * Support 3 * Process/Product 4 * IT Efficiency « Purchasing 24 Which Bank Conmonwealthiak <jy 7 * Our target of 24 activities
Slide 8: Progress highlights
Progress highlights Performance culture Service and sales management ‘CommSee’ in Tasmania Home Loan End to End Branch refurbishment * We have been working hard on a number of critical milestones. * Give you an impression of the traction we are getting.
Slide 9: Performance culture
Performance culture Cultural diagnostic completed Program implementation next half Leading from the front Staff involvement eg * In the last four months we have completed all the diagnostic work necessary to implement our performance culture program. * This will enable us to improve our: * performan
Slide 10: Staff feedback to CEO
Staff feedback to CEO Emails 50 % ag {om om a 40 4 38 4 30 5 28 4 20 5 184 10-4 54 a5 T T T T T Strategy Staff Executive Improving Staff Personal Communication visits service — perforrnance Feedback category Which Bank Commonwealthaak {7% 1 «I’ve invited staff to email me direct about any issue. « Y
Slide 11: Service and Sales management
Service and Sales management Transforming the way we serve customers Realising full potential of customer serving staff Improving service & sales skills and effectiveness Applicable to everyone Which Bank Conmonwealthiak <p ;, « By June 2004, 13,000 staff trained in service and sales management. « L
Slide 12: Service and Sales - early results
Service and Sales - early results 121 Product sales per FTE 98 99 Benchmark: 700 ‘Benchmark: 100 Week 1 Week2 Week3 Week4 WeekS Week6 Week? Week8 -—7 National benchmark ConmonweaithBank “9 42 * 120 branches in Southern Metro NSW are already applying service and sales system. « After 8 weeks, compare
Slide 13: CommSee - Service Excellence Everyday
CommSee - Service Excellence Everyday » Bank-wide customer management system » Provides single view of customer » Starting in Tasmania » Improving service for 250,000 customers Which Bank Conmonwealthiak (jy 43 « Seeing the customer experience from the customer perspective. « Improved customer servi
Slide 14: Home Loan End to End
Home Loan End to End » Single home loan origination system » Efficiency gains Which Bank Comnonwealthiak p44 «In the retail bank and third party, moving from 5 to a single home loan origination system. « Improved customer service and efficiency gains. « Improving customer experience «Example: 70% of
Slide 15: Conditional home loan approvals on the spot
Conditional home loan approvals on the spot Home toans - on the spot decisioning Applications % 8 70 4 60 4 50 5 46 4 30 5 20 4 104 o T T Oct-03 Dec-03 Time Which Bank Comnonweatthiak 1p 5 * Increasing ability to provide on the spot conditional approval gives customers certainty. * Significant impro
Slide 16: Branch refurbishment
Branch refurbishment A better experience for our customers Which Bank Conmonwealthiak (% 1, - Branches are being redesigned to be more customer and staff friendly. - New technology with layout design efficiencies, a modern fit-out and new merchandising features. - To date we have completed 40 branch
Slide 17: Customer service tracking
Customer service tracking Strength of Relationship Apr-Jun 03 Jub-Sep 03 Oct-Dec 63 Time be Which Bank Conmonwealth8ank “y 7 « We have not lost ground in the early stages of WnB implementation. «Since September our strength of relationship score has held steady at §.8. This is an external measure re
Slide 18: Business line market share movements
Dec June 2003 2003 Retail and Business Deposits’ Credit Cards Transaction Services” Home Loans Business Lending New Zealand Lending New Zealand Deposits’ Asset Finance’ Managed Investments” New Zealand Managed Investments * Early days * Deposits - down 0.2% reflecting sale in October of Custody busi
Slide 19: Strong business momentum
Strong business momentum Business Growth Better than expected Market share pick-up in business banking Margins Consistent with assumptions Productivity Within 4-6% target range Earnings growth Exceeding assumptions Dividend growth Exceeding assumptions Which Bank Conmonwealthiak (jy 4g « Previous pr
Slide 20: Which new Bank summary
Which new Bank summary Early days, but confident we are on right track Evidence of earnings and productivity impact emerging Bank's leadership is fully committed to successful implementation » Early adoption of cultural change by staff Next progress update mid-year Conmonwealth®8ank “y 20 + Itis sti
Slide 21: Outlook - Economy
Outlook - Economy : Global » Continued strong growth short term » Medium-term structural issues remain » Domestic » Influence factors to remain positive on balance for 1HO4 » Subsequent period open to number of potential influences » Credit growth expected to slow down due to home loan contraction W
Slide 22: Outlook - Bank
Outlook - Bank » Earnings » Economic momentum to support solid growth for full year » Growth in cash EPS exceeding 10% CAGR over three years till 30 June 2006 » Productivity » Productivity improvement of 4-6% CAGR over a three years till 30 June 2006 : Dividend » Which new Bank initiative expenses a
Slide 23: Summary
Summary Good result: underlying profit growth of 17% » Another record dividend Productivity improvements in all businesses Capital strengthening, buy-back, share purchase pian in place Which new Bank underway and meeting expectations Full year outlook positive : Confidence in longer term growth obje
Slide 24: Which new Bank Progress Update
0 # e & Which Bank Progress Update David Murray Chief Executive Officer 41 February 2004 www.commbank.com.au
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