Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Shareholder Meeting (October 2007)
46 slides from Bendigo & Adelaide Bank's shareholder meeting presentation, Oct 29, 2007
Slide 1: 142nd Annual General Meeting 29 October 2007
nd 142 Annual For personal use only General Meeting 29 October 2007
Slide 2: Address by Chairman Robert Johanson
For personal use only Address by Chairman Robert Johanson Chairman
Slide 3: Results at a glance
For personal use only Results at a glance Results summary 2006 2007 Change Cash Earnings ($m) 102.5 118.5 15.6% Cost to Income Ratio 66.6% 64.6% 2.0 pts Cash EPS (cents) 73.2 82.9 13.3% Dividend Per Share (cents) 52.0 58.0 11.5%
Slide 4: Branch network by state
For personal use only NT BBL 2 CB 2 QLD BBL 49 CB 28 WA BBL 2 CB 34 SA BBL 1 CB 8 NSW ADB 25 BBL 13 CB 36 VIC ACT BBL 82 BBL 1 BBL branches 158 branches CB 88 CB 2 CB branches 203 branches Total branches 361 branches Adelaide Bank (ADB) 25 branches Merged Group Total 386 branches TAS BBL¹ 9 CB 4
Slide 5: Results at a glance
For personal use only Results at a glance Results summary 2006 2007 Change Deposits $13.6b $15.2b 11.8% Assets $15.2b $17.0b 11.8% Customers 1.07m 1.17m 9.4% Group Managed Loans 14.1 15.8 12.1%
Slide 6: The Bendigo Centre
For personal use only The Bendigo Centre
Slide 7: The Bendigo Centre
For personal use only The Bendigo Centre
Slide 8: The Bendigo Centre
For personal use only The Bendigo Centre
Slide 9: The Bendigo Centre
For personal use only The Bendigo Centre
Slide 10: Bendigo Data Centre
For personal use only Bendigo Data Centre
Slide 11: Bendigo Data Centre
For personal use only Bendigo Data Centre
Slide 12: Strategic options
Strategic options For personal use only Board considered a number of strategic options
Slide 13: Adelaide Bank proposal
Adelaide Bank proposal For personal use only
Slide 14: 10 year growth - earnings
10 year growth - earnings For personal use only 140.0 90.0 80.0 120.0 70.0 100.0 60.0 Earnings ($m) EPS (cents) 80.0 50.0 40.0 60.0 30.0 40.0 20.0 20.0 10.0 - 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Notes: As at 30 June. 1998-2005 prepared in accordance with AGAAP, 2006-2007 prepared i
Slide 15: 10 year growth
10 year growth For personal use only 18,000 16,000 16,000 Total Assets ($b) 14,000 14,000 Total Assets Deposits Deposits ($b) 12,000 12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000 2,000 2,000 - 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 - 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 16: Market capitalisation
Market capitalisation For personal use only 2,500 2,000 Market Capitalisation ($m) 1,500 1,000 500 0 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 -9 -9 -9 -9 -9 -9 -9 -0 -0 -0 -0 -0 -0 -0 -0 ar ar ar ar ar ar ar ar ar ar ar ar ar ar ar M M M M M M M M M M M M M M M Source: IRESS
Slide 17: Our shareholders
For personal use only Our shareholders
Slide 18: Long-term shareholder benefit
Long-term shareholder benefit For personal use only Our business has changed The banking industry has changed Change expected to continue
Slide 19: Long-term shareholder benefit
Long-term shareholder benefit For personal use only Long-term sustainable value Make investments Build the capacity and relationships Future prospects
Slide 20: A history of mergers
A history of mergers For personal use only 15 mergers over 25 years Business expanded & strengthened
Slide 21: Credit crisis – impact
Credit crisis – impact For personal use only Implications for proposed merger U.S. market: Loans defaulted Sub prime mortgages Falling house prices Mortgage bundles sold to investors Trust between banks & financial markets eroded
Slide 22: Australian market
Australian market For personal use only Bank lending standards remain high Housing prices remain high Domestic economy is strong Global increase in price of credit affecting all banks
Slide 23: Impact on our business
Impact on our business For personal use only Impact on margin Impact on lending volume Deposit volumes remain excellent Confident about our business model
Slide 24: Australian Managed Funds growth
Australian Managed Funds growth For personal use only 1400 1200 1000 800 $ billion 600 Superannuation 400 200 Non-Superannuation Source: Reserve Bank of Australia 0 8 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 n -8 n- n- n- n- n- n- n- n- n- n- n- n- n- n- n- n- n- n- Ju J u Ju J u Ju J u
Slide 25: Funding mix relative to peers
Funding mix relative to peers 100% For personal use only 90% 80% 45% 44% 51% 49% 48% 55% 55% 70% 60% Wholesale Securitisation50% Other 40% 30% 55% 56% 49% 51% 52% 45% 45% 20% Retail 10% 0% BOQ St George NAB Westpac Pro CBA ANZ Forma Merged Source: Based on company presentations/Annual Reports. Group
Slide 26: Asset quality
For personal use only Asset quality 2H06 1H07 2H07 Gross impaired loans Bendigo $14.9m $12.8m $18.2m Adelaide $23.6m $24.4m $31.0m Gross impaired loans / gross (non securitised) loans Bendigo 0.12% 0.10% 0.13% Adelaide 0.20% 0.18% 0.21% Majors average 0.26% 0.26% 0.27%¹ Source: Annual Reports and Br
Slide 27: New capital adequacy rules
For personal use only New capital adequacy rules Basel II Review our strategic investments Positive impact on margin lending Adelaide Bank – Leveraged Equities
Slide 28: Implementation timetable
For personal use only Implementation timetable Event Proposed Dates Adelaide Scheme Meeting 12 November 2007 Second Court Hearing 16 November 2007 Implementation Date 30 November 2007 Bendigo EGM (change of name) Late January 2008
Slide 29: Our sesquicentenary
For personal use only Our sesquicentenary 9th July 2008 150th anniversary
Slide 30: Presentation by Managing Director Rob Hunt
Presentation by For personal use only Managing Director Rob Hunt
Slide 31: Continued investment
Continued investment For personal use only Distribution Product Technology Balance Sheet & risk
Slide 32: Investment in branches & distribution
Investment in branches & For personal use only distribution 22 new branches 200th Community Bank® 500 ATMs First Northern Territory branch
Slide 33: Investment in branches & distribution
Investment in branches & For personal use only distribution Real-time banking system – agencies BEing the Bendigo training Branch of the future Associate Planner program
Slide 34: For personal use only
54, Pp lg r | pg q ol ™~ ~) \ y y wo \ wt $35m ~— 4 Branches \ y \ t $4.6b y ( 77 Branches \ $2.2b 36 Branches $500m 9 Branches ‘ —_ v< \ y \ g > , f é aa é / \ — “4 Figures current at 30 September 2007 a 5 ) $726m Bendigo Bank
Slide 35: Investment in IT technology
Investment in IT technology For personal use only $10 million Data Centre
Slide 36: Investment in IT technology
Investment in IT technology For personal use only Project Enable Upgraded data warehouse & customer information system capability
Slide 37: Investment in infrastructure
Investment in infrastructure For personal use only MasterCard and Customers Ltd partnership Strategic Payment Services joint venture Balance sheet & risk management capabilities
Slide 38: Investment in product offering
For personal use only Investment in product offering Bendigo Health Cover Sandhurst Professional Series Homesafe Equity Release Generation Green
Slide 39: Connecting with our customers and communities
Connecting with our For personal use only customers and communities 77,000 new customers Building on relationships Community engagement Customer satisfaction
Slide 40: Connecting with our customers and communities
Connecting with our For personal use only customers and communities Customer and community advocacy Deepen our community engagement Support local projects and initiatives
Slide 41: Sustainable profit improvement
Sustainable profit improvement For personal use only Maintain disciplined approach to growth Continue focus of growth at profitable prices Avoid unsustainable price discounting Win business on our high service proposition Improve prospects of our communities
Slide 42: Operations
Operations For personal use only Strong growth across all business divisions Excellent credit quality Prudent credit framework Net impaired loans – 0.07% of total loan receivables Tier 1 capital – 7.98%
Slide 43: Group companies
Group companies For personal use only Sandhurst Trustees Ltd National Mortgage Market Corporation Oxford Funding Victorian Securities Corporation Limited Bendigo Financial Planning
Slide 44: Looking forward
Looking forward For personal use only Continue to grow sustainable shareholder value Expand distribution capability Build relevant products & solutions Further diversify revenue base Grow strong relations & expand customer base Build additional value into our partner businesses Continue our commitme
Slide 45: The future
For personal use only The future Ensure merger with Adelaide Bank is effectively integrated to build a more skilled, diverse and robust business capable of adapting to changing market conditions.
Slide 46: Thank you
Thank you For personal use only Chairman and Directors Staff Alliance partners Communities Customers Shareholders
Bendigo and Adelaide Bank — Shareholder Meeting (October 2007) on 6ix