Differentiation Institutional and Business Services

1. DifferentiationInstitutional and Business Services Salomon Smith Barney Financial Services Conference Michael Ullmer 4 March 2003

2. Disclaimer The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 4 March 2003. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate.

3. 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.”

4. We have reorganised our business into client and product groups Manage Client relationships Design and manufacture product Institutional Banking Corporate Banking Business Banking Global Markets Working Capital Services Institutional Banking Capital and risk management solutions for Institutions and governments in the domestic and international market Local relationship management for corporate clients in Australia and the top institutional / corporate clients in New Zealand Integrated financial services for small, medium and rural businesses throughout Australia Financial markets facing activities including debt capital markets, foreign exchange, derivatives money market, and commodities. Products to support financial and operational working capital needs, such as transaction banking, merchant acquiring and asset financing Product range embracing the full capital structure from senior debt to mezzanine to equity using project finance, structured finance, and corporate lending People Risk Management Technology Brand

5. The elements of our Competitive Advantage are: • Talented People • focused on achieving • flawless execution Superior understanding of our client’s needs Tailored client relationship management, locally based providing excellent service/effective sales Integrated product offering with innovative niches Excellent understanding of risk & return trade-off

6. Our new client segments better reflect our client base and will facilitate improvement of segment economics Segmentation criteria Number Of Clients Business Model Segment Focus Segment Client Turnover ($m) Client Total Footings ($m) Institutional Relationship Managed • Share of wallet >150 800 • New Clients • Share of Wallet Top Tier Corporate >5 10-150 2,200 Corporate • New Clients • Share of Wallet • Corporate Focus Corporate 0.85-5 9,200 • New Clients • Share of Wallet • Regional Focus Regional Relationship Managed 0.85-5 4,300 59,000 SME 0.15-0.85 • Share of wallet • Cost Business Managed Centrally 118,000 Small <0.15 • Cost • Source: CBA CRIS Quarter March 2002 annualised; Taylor Nelson Sofres July 2002; ABS 2000-2001; Greenwich & Associates 2000; BRW Top 1000 Companies

7. Segment Our business models for Corporate and Business Banking involve changes to a number of areas Service Sales Credit Product Increased client satisfaction through local dedicated Relationship Executives with product support Relationship served through sales centre and ‘mobile’ salesforce Streamlined service team aligned with RE and service centre for day-to-day maintenance to speed up simple enquiries Mostly through service centre with extended hours of support Streamlined processes for top-ups, property secured and existing relationships to improve client service (instead of mostly full analysis) Majority of applications ‘fast tracked’ to improve client service (instead of mostly full analysis) Tailored from standard product to meet more complex client needs Rationalised from over 100 products to standard packages making choice for the client simple and reducing costs Top Tier Corporate Banking Local Relationship Management Corporate Regional SME Business Banking Centralised Relationship Management Small

8. On the product front, we have an integrated offering with innovative niches... • Global Markets • Local presence • Corporate Bonds • Precious metals • Working Capital Services • Transaction Banking Clients • Other Divisions • Retail Financial Services • Premium Financial Services • Investment and Insurance Services • Institutional • Environmental initiatives • Infrastructure financing • Specialised Lease advisory

9. Top 20 exposures as a % of Total Committed Exposure 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Dec 2000 Dec 2001 Dec 2002 …while maintaining a sound credit profile Commercial Portfolio 100% 36 39 80% 40 60% 15 15 14 40% 20 19 17 20% 29 29 27 0% Dec 01 Jun 02 Dec 02 AAA/AA* A BBB Other

10. Strong execution skills are crucial to client service Strategy Execution Deliver top quartile performance BIZ PLAN Priorities Actions Outcomes • Developed new strategy • Set key strategic priorities • Key factor for success • Underpinned by people Flawless execution of strategy and client service is crucial

11. In summary, highlights of differentiation are Superior understanding of our client’s needs Flawless Execution Deliver top quartile performance over rolling five year periods Locally based client relationship management Integrated product offering Excellent understanding of risk & return trade-off

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