National Australia Bank Limited · ASX:NAB
National Australia Bank — UBS Warburg Conference 2003
18 slides from National Australia Bank's conference presentation, Jun 12, 2003
Slide 1: Business Financial Services
Business Financial Services UBS Warburg Conference 42! JUNE 2003 PAUL CLARK Financial solutions. For life. National
Slide 2: Our Strategy - Business on a Page
OUR STRATEGY-BUSINESS ON A PAGE * Acustomer obsessed organisation that delivers complete financial solutions (Integrated Financial Services) ¢ Leveraging technology for greater customer insights and scale to create natural cost advantages & sales effectiveness * Creating a high performance culture *
Slide 3: Emerging Trends
EMERGING TRENDS ® Improving customer satisfaction ® Improving business confidence translating into increased business lending ® Lack of business investment, flight to quality, soft equity markets & low interest rates have driven significant increases in deposit volumes ® Strong domestic economy, low
Slide 4: Same Number of Customers but the Right Customers
SAME NUMBER OF CUSTOMERS BUT THE RIGHT CUSTOMERS SHARE OF CUSTOMERS (%) SHARE OF TRANSACTIONAL CUSTOMERS (%) —- > 23 19 22 23 44 18 -— 14 ANZ WBC CBA NAB ANZ WBC CBA NAB Source: TNS April 2003 April 03 vs October 02 Source: East Partners March 2003 SHARE OF LENDING(%) 27 ay 18 —_> ee y 1 43 15 Vv 15
Slide 5: Same Number of Customers but the Right Customers
SAME NUMBER OF CUSTOMERS BUT THE RIGHT CUSTOMERS SHARE OF LENDING(%) 27 . 48 , | 1% 15 Vv 15 13 ANZ WBC CBA NAB Source: TNS April 2003 April 03 vs October 02 Financial solutions. For life. CUSTOMER RISK PROFILE (%) CRS 1-7 CAT AIB 71 62 MAY 01 MARO3 MAY 01 MAR 03 Source: NAB March 2003 National
Slide 6: We Are Leveraging Our Strength in Traditional Banking
WE ARE LEVERAGING OUR STRENGTH IN TRADITIONAL BANKING Source: TNS April 2003 April 03 vs October 02 Financial solutions. For life. SHARE OF LENDING(%) SHARE OF DEPOSITS (%) og 27 20 v 47 18 t u 14 8 —__> “yy 16 43 ‘45 ft 3 15 ANZ WBC CBA NAB WBC ANZ CBA NAB National
Slide 7: We Are Focused on Customer Loyalty
WE ARE FOCUSED ON CUSTOMER LOYALTY SHARE OF WALLET % VERY SATISFIED CUSTOMERS NAB % 64 61 oo 53 § v Y | —. 48 AT 26 23 ANZ WBC CBA NAB OCT APR Source: TNS April 2003 April 03 vs October 02 Financial solutions. For life. National
Slide 8: Better Positioned for Longer Term Growth
BETTER POSITIONED FOR LONGER TERM GROWTH * Strong customer base Pu dae | §6° Ability to deliver IFS Proposition * Deeper Customer Insight through CRM * integrated & aligned sales force * Superior relationship management proposition Superior Capabilities * Leads & CRM drive responsiveness & efficienc
Slide 9: Superior Customer Proposition
SUPERIOR CUSTOMER PROPOSITION Obsessive about customer value delivered and complete customer experience Focus on target customers who drive 60-80% of profits Re-thinking segments to better identify preferred customers after considering between profitability, credit risk and cost to serve Extending t
Slide 10: Our Business Model Continues to Focus on the Customer
OUR BUSINESS MODEL CONTINUES TO FOCUS ON THE CUSTOMER CUSTOMER Risk Management Services Property Financing Business International Cards Trade povmens e Relationship Manager Debtor ransactional @—___ . Banking Financing Insurance © Asset Leasing & Fleet Services Wealth Traditional Lending Management
Slide 11: Superior Capabilities
10 SUPERIOR CAPABILITIES Well developed distribution capability Advanced segmentation capability linked to greater customer insight Demonstrated Integrated Financial Solutions capability Technology to drive customer benefit but also significant productivity gains Electronic banking and transaction m
Slide 12: Providing Better Customer Solutions
PROVIDING BETTER CUSTOMER SOLUTIONS PHYSICAL DISTRIBUTION BETTER CUSTOMER SOLUTIONS RELATIONSHIP PHILOSOPHY ADVANCED TECHNOLOGY NW Financial solutions. For life. National
Slide 13: High Performing People
12 HIGH PERFORMING PEOPLE Performance Measurement for bankers focused on profit/EVA not volumes Customer value and potential value understood ensuring that our sales force focuses on the right opportunities Technology focused on improving customer service but also relationship manager productivity S
Slide 14: Understanding Customer Value
UNDERSTANDING CUSTOMER VALUE RELATIVE EVA RETURNS 34 31 FACTS: 22 «$1 MILLION IN LENDING * DIFFERENT RISK PROFILES * DIFFERENT SECURITY CATEGORY * SAME LOAN TERM 4 * SAME PRODUCT Source: INTERNAL (82) 13 Financial solutions. For life. National
Slide 15: Asset Quality Remains a Strong Focus for BFS
14 ASSET QUALITY REMAINS A STRONG FOCUS FOR BFS Pricing, Product and DCAs all aligned to drive growth in preferred target markets Profit and RAROC/EVA KRA's shift focus from quantity to quality Predictive modelling and proactive reviews have reduced stress test failures by 50% Risk profile changed t
Slide 16: Issues the National and Competitors Will Need to Manage
THERE ARE A NUMBER OF ISSUES THAT THE NATIONAL AND OUR COMPETITORS WILL NEED TO MANAGE OUR COMPETITIVE ADVANTAGE * Strong needs based focus/share of * Business lending llet waiie * Interest rates « Stronger( less risky) customer base * Margins * Pricing for risk * Asset quality * Core competence in
Slide 17: Why Are We Better Positioned for Longer Term Growth?
WHY ARE WE BETTER POSITIONED FOR LONGER TERM GROWTH? ® The National is better positioned for longer term growth in the business banking sector ... ® Increasing market share in our preferred markets add to an already strong & loyal customer base * Superior distribution capability allows us to extend
Slide 18: Disclaimer
17 DISCLAIMER The preceding material is a presentation of general background information about the National’s activities current at the date of the presentation,12‘ June 2003. It is information given in a summary form and does not purport to be complete. It is not intended to be relied upon as advic
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