Global Business & Personal Financial Services

1. Global Business & PersonalFinancial Services Peter Flavel General Manager, Business & Personal Financial Services www.national.com.au

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, 19 July 2000. It is information given in a 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. Agenda 1. Global Franchise Strategy - Global Integrated Financial Services - Segmented customer base - Future growth from selected Relationship Management segments 2. Global Model - Deliverables - Opportunities

4. The National’s Five Core Strategies 1. Drive performance and growth in businesses that rely on relationship management 2. Accelerate the growth of selected global businesses 3. Stake out positions in areas key to the evolution of financial services 4. Manage our other businesses for value 5. Build diversified income streams

5. Integrated Financial Services Past Today INVESTMENTS INTEGRATED FINANCIAL SERVICES COMPANY BANK BANK • Wealth Accumulation • Wealth Management • Wealth Protection INSURANCE Integrated Financial Services is about understanding and providing for the full financial services needs of the customer throughout their lifecycle

6. Where our customers are 12.5 million customers in four geographies 4.5 million 0.9 million 1.5 million 5.6 million

7. Franchise system development Develop CVPs, customer relationship approach, segmentation Overall strategy and development Drive segment performance globally Investment and resource focus Direct accountability for local operational trading performance Regional performance management Brand promotion Governance and regulatory management Strategy input and implementation Global Franchise Model COUNTRY CEO (Franchisee) GLOBAL SEGMENT HEAD (Franchiser)

8. Tailored Customer Value Propositions National Customer Segmentation Global Personal and Business Financial Services Custom Business Packaged Business Agri business Private Premium Retail • Business • solutions • management • Partnership • management • Cost-efficient • tailoring • Transaction • migration • Specialist • services • Bespoke • - specialist • expert advice • Tailoring • Any place, • Any time • Low CostTailoring • Transaction • Migration

9. Global Retail Customer Model Customer Customer Relationship Management • PhysicalOutlets • Reduced • footprint • New concepts • ATMEFTPOS • Expandedfunctionality • Additionalmachines • eCommerce • delivery • Internet Banking • NOLT • YPL • 360 degrees • Concert • Banker • Life event sales • and servicing • PC rollout • CallCentres • Expanded functionality • Transaction • Migration • 24 x 7

10. Global Premium Customer Model Customer Direct Client Acquisition Mobile Mortgage Manager Financial Planning Specialist Relationship Manager Customer Relationship Management PhysicalOutlets ATMEFTPOS eCommerce CallCentres

11. Global Private Customer Model Customer Taxation Planning Specialist Financial Planning Specialist Private Banker Estate Planning Specialist Portfolio Manager Customer Relationship Management PhysicalOutlets ATMEFTPOS eCommerce CallCentres

12. Global Packaged Business Customer Model Customer External Advisory Services Business Banker Specialist Services Personal Banking /Financial Planning Customer Relationship Management PhysicalOutlets ATMEFTPOS eCommerce CallCentres

13. Global Custom Business Customer Model Customer External Advisory Services International Trade /Treasury Business Banker Payments Asset Finance /Leasing Specialist Personal Banking /Financial Planning Customer Relationship Management PhysicalOutlets ATMEFTPOS eCommerce CallCentres

14. 8 6 4 2 0 Needs Met per customer segment Total Retail Private Custom Agribus Package Premium

15. Summary of Global Franchise Strategy Integrated Financial Services Segmented Customer Base Solutions tailored to each segment Consistent global delivery Growth in Relationship Management model leads to increased Share of Wallet

16. What the global model delivers…….. 1. Global transfer of proven practices 2. Standardisation of products and processes globally and therefore reduced costs 3. Global consistency with local execution 4. Leveraging global scale 5. Effective use of global talent pool 6. Diversification of country risk

17. Global transfer of proven practices • Premium Choice packages and Flexiplus mortgage from Australia • Business Mortgage from Australia • Rapid Repay mortgage and Global Plus Rewards from New Zealand • Principal Account from UK and Ireland • New distribution channels (eCommerce, CRM) from Michigan

18. Global transfer of proven practices • Establishing joint Business and Personal Financial Services centres in the UK (Leeds and Manchester) • Exporting the successful New Zealand Business sales tracking system into Michigan and Australia (including Lotus Notes capability) • Trialing new retailing concepts (eg mega BBCs and Investment Centres in Sydney and Melbourne) • Global Agribusiness model being implemented and award-winning Agribusiness marketing campaigns being exported from New Zealand • Successful UK Collections Centre model now in place in other regions • Global Customer Relationship Management system being implemented

19. Global CRM capability Customers to choose where, when and how their financial services are delivered… “anywhere, anytime, anyway” Internet On the Move Physical Retail Outlet Home Anytime Anywhere Any Device Customer Work Place Contact Centre

20. CRM will lead to a single view of the customer Customer Contact Centre Banker Internet Mobile specialists

21. Personal Relationship ManagementCapability Development • Increased the number of Financial Planners from 200 to 300 in Australia and increased inflows through Financial Planners by 30% on prior year • Opened a further five Private Banking suites in Australia and New Zealand and increased specialist Financial Planners and Estate Planners • Launched Premium platform in the United States • Further rollout of Premium and Private Business in the UK and Ireland

22. Business Relationship ManagementCapability Development • High touch “Major Client Groups” in key regions • Pilot of Micro and Package Business programs in the UK and US (respectively) • Commenced Custom Business Expansion program in the UK • Agribusiness model being implemented in all regions • Introduced specialist Financial Planners onto Business platform in Australia

23. Global Wealth ManagementPotential Global Business • Very successful “manage the manager” operating model and product range in Australia • National’s distribution capacity and customers in overseas markets • Completed first review of options to enter the UK market

24. Summary of Global Model Examples of recent transfers of proven practices Development of global CRM capability Expansion of Relationship Management Development of global wealth management business

25. …...supporting the National’s five core strategies 1. Drive performance and growth in businesses that rely on relationship management 2. Accelerate the growth of selected global businesses 3. Stake out positions in areas key to the evolution of financial services 4. Manage our other businesses for value 5. Build diversified income streams

26. www.national.com.au