Global Business & PersonalFinancial Services

Peter Flavel

General Manager, Business & Personal Financial Services

www.national.com.au

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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.

Disclaimer

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Agenda

1. Global Franchise Strategy- Global Integrated Financial Services- Segmented customer base- Future growth from selected Relationship Management segments

2. Global Model- Deliverables- Opportunities

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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

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BANK BANKBANK

INSURANCEINSURANCE

INVESTMENTSINVESTMENTS

• Wealth Accumulation

• Wealth Management

• Wealth Protection

Integrated Financial Services is about understanding and providing for the full financial services needs of the customer throughout their lifecycle

INTEGRATEDFINANCIALSERVICESCOMPANY

PastPast TodayToday

Integrated Financial Services

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5.6 million

0.9 million

4.5 million

1.5 million

12.5 million customers in four geographies

Where our customers are

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• 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 SEGMENT HEAD(Franchiser)

COUNTRY CEO(Franchisee)

Global Franchise Model

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PrivatePrivateAgribusiness

Agribusiness PremiumPremiumCustom

Business

CustomBusiness

PackagedBusiness

PackagedBusiness

Global Personal and BusinessFinancial Services

Global Personal and BusinessFinancial Services

• Bespoke - specialist

expert advice

• Bespoke - specialist

expert advice

• Tailoring

• Any place,Any time

• Tailoring

• Any place,Any time

• Businesssolutions

management

• Partnershipmanagement

• Businesssolutions

management

• Partnershipmanagement

• Specialistservices

• Specialistservices

• Cost-efficienttailoring

• Transactionmigration

• Cost-efficienttailoring

• Transactionmigration

RetailRetail

• Low CostTailoring

• TransactionMigration

• Low CostTailoring

• TransactionMigration

National Customer Segmentation

Tailored CustomerValue Propositions

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Global Retail Customer Model

Customer Relationship Management

CallCentres

• Expanded

functionality• Transaction

Migration• 24 x 7

Banker

• Life event salesand servicing

• PC rollout

eCommercedelivery

• Internet Banking

• NOLT• YPL

• 360 degrees• Concert

ATMEFTPOS

• Expandedfunctionality• Additionalmachines

PhysicalOutlets

• Reduced footprint

• New concepts

Customer

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FinancialPlanningSpecialist

Direct Client

Acquisition

Global Premium Customer Model

Relationship Manager

MobileMortgageManager

CallCentres

eCommerceATM

EFTPOSPhysicalOutlets

Customer Relationship Management

Customer

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Global Private Customer Model

PrivateBankerEstate

PlanningSpecialist

TaxationPlanningSpecialist

PortfolioManager

FinancialPlanningSpecialist

Customer

CallCentres

eCommerceATM

EFTPOSPhysicalOutlets

Customer Relationship Management

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Global Packaged Business Customer Model

BusinessBanker

SpecialistServices

Personal Banking/Financial Planning

CustomerExternalAdvisoryServices

CallCentres

eCommerceATM

EFTPOSPhysicalOutlets

Customer Relationship Management

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Global Custom Business Customer Model

BusinessBankerAsset

Finance/LeasingSpecialist

International Trade/Treasury

ExternalAdvisoryServices

Payments

Personal Banking/Financial Planning

Customer

CallCentres

eCommerceATM

EFTPOSPhysicalOutlets

Customer Relationship Management

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Cu

sto

m

Pac

kag

e

Ag

rib

us

Pri

vate

Pre

miu

m

Ret

ail

To

tal

Needs Met per customer segment

0

2

4

6

8

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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

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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

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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

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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

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Global CRM capability

Home

PhysicalRetailOutlet

CustomerContact Centre

On the MoveInternet

AnytimeAnywhere

Any Device

Work Place

Customers to choose where, when and how their financial services are delivered… “anywhere, anytime, anyway”

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Customer Contact Centre

Mobile specialists

Internet

Banker

CRM will lead to a single view of the customer

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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

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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

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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

Global Wealth ManagementPotential Global Business

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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

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…...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

26www.national.com.au