Westpac Banking Corporation · ASX:WBC
Westpac Banking — UBS Australian Financial Services Conference 2003
17 slides from Westpac Banking's conference presentation, Jun 11, 2003
Slide 1: Australia's First Bank: Retail Banking...unlocking the potential
ls Australia's First Bank Retail Banking ...unlocking the potential UBS - Australian Financial Services Conference Paul Lilley -General Manager Sales & Service 11 June 2003
Slide 2: Disclaimer
Disclaimer The material contained in this presentation is intended to be general background information on Westpac Banking Corporation and its activities. The information is supplied in summary form and is therefore not necessarily complete. Also, it is not intended that it be relied upon as advice
Slide 3: Westpac's strong Australian retail franchise
Westpac’s strong Australian retail franchise * Business & Consumer Banking (BCB) - Australian retail banking and wealth distribution - Customer-driven organisational structure - Optimal geographic footprint - 5.1 million customers * Mission: To be the number 1 service organisation in the financial s
Slide 4: Developed a three phase program to unlock growth
Developed a three phase program to unlock growth Early 2008. 2003-2005 2005 and beyond Alignment, planning Re-positioning Unlock growth & quick wins g _ Detailed environmental Redefine customer | Delivery of lifecycle | diagnostic experience customer solutions Mapped capabilities Reposition to explo
Slide 5: Achievements to date
Achievements to date * Implemented business-unit led initiatives contributing to a 13% growth in cash earnings - Pricing review - Disciplined cost management * Realigned and refocussed investment spend - Reach — customer insight - Pinnacle — lending process improvement * Significant upscale in knowl
Slide 6: Fundamental to unlocking potential
Fundamental to unlocking potential Westpac DNA Vision > Strategy How? > Outcomes Oifferentiator: Supenior-eExecution Core Group Objectives 2003 “To bea great | Australasian Company” increase employee: commitment improve customer satisfaction Deliver cash earnings growth targets. Top § corporate citi
Slide 7: Developed a comprehensive profit pool analysis
Developed a comprehensive profit pool analysis Industry Profit Pool Forecasts Forecast system ~ 7% teas ' ive 30% - Credit Card: Leasing & Equip reer’ » Finance 25% - | Industry ROE ~20% 20% - e 2002 aN Personal Lending - y 1 Size of ROE 18%, fs bubble (%) nsumer Savings & Transactions indicates ' r
Slide 8: Mapped against the evolving business market
Mapped against the evolving business market Growth by Business Size 2001 -2007 Non * Seeking more sophisticated employing Bucinececs products, packaged to reduce complexity 1-4 employees * Solutions that reduce administration 5-19 employees ¢ Issue resolution consistent | with needs 20-99 _ employee
Slide 9: Business profit pool micro-analysis by state and segment
Business profit pool micro-analysis by state and segment eograp Agribusiness SME Middle Market Total Source : Westpac analysis Estimated industry profit pool ($m) — Estimated Westpac profit ($m) Austratia’s Retail bank locking the potential
Slide 10: Current SME Position
Current SME Position e Middle of the pack in SME Product Market Share _ Westpac v. Lead Competitor terms of share | | 38%) ° No. 2 in customer ea satisfaction | 5% * Outstanding resource = pool “40% * Significant opportunities °| . 0% - 7 remain i Short Term Longer Term Annual . “Short Term Longer T
Slide 11: Strategies for business - maximise value from profit pools
Strategies for business - maximise value from profit pools | Regain equipment _ finance book Put business capability back into branches Feet on the street Business CRM pilot Business CRM rollout Lifecycle packages Business superannuation Integrated distribution model Strengthen link between banking
Slide 12: Considerable success to date
Considerable success to date * Business banking cash earnings increased 25% over prior year * Equipment finance book rebuild significantly ahead of schedule - 72% of portfolio re-acquired ¢ Business credit growth stronger than system — up 10% * Outstanding business credit quality - Impaired assets t
Slide 13: Considerable success to date cont..
Considerable success to date cont.. * Industry packages delivering value - Pharmacy ~— 17% growth ¢ Leads generation showing some promise - Pilot program — 78% of leads converted to opportunity * Better meeting customer needs at first point of contact - Pilot program placing business bankers closer
Slide 14: Consumer franchise offers similar opportunities
Consumer franchise offers similar opportunities Customers seeking service, advice & bundling Retention opportunity with older customers Key profit pools identified — by geography, age and product Develop solutions that evolve with customer lifecycle Align distribution to better capture profit pools
Slide 15: Financial and non-financial measures of success
Financial and non-financial measures of success ¢ A breakaway customer experience ¢ Leading strategic execution * Superior growth / return earnings profile Retail banking — unlocking the potential
Slide 16: Three phase program on track
Three phase program on track ¢ Diagnostic complete ¢ Delivered quick wins ¢ Implementing the strategies ¢ Value is being delivered Retail banking — unlocking the potential
Slide 17: Australia's First Bank: Retail Banking...unlocking the potential
ls Australia's First Bank Retail Banking ...unlocking the potential UBS - Australian Financial Services Conference Mike Pratt Group Executive, Business & Consumer Banking 11 June 2003
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