^ìëíê~äá~å=`fl=pìããáí=OMNO

cçääçï=ìë=çå=qïáííÉê

@ãÉ`fl=E]ãÉpìããáíëfqF=

ÜííéWLLíïáííÉêKÅçãLãÉpìããáíëfqÜííéWLLíïáííÉêKÅçãLãÉpìããáíëfq

objfkaboW=mib^pb=e^ka=fk=vlro=bs^ir^qflk=cloj=objfkaboW=mib^pb=e^ka=fk=vlro=bs^ir^qflk=cloj=objfkaboW=mib^pb=e^ka=fk=vlro=bs^ir^qflk=cloj=objfkaboW=mib^pb=e^ka=fk=vlro=bs^ir^qflk=cloj=_bclob=ib^sfkd=qeb=prjjfq_bclob=ib^sfkd=qeb=prjjfq_bclob=ib^sfkd=qeb=prjjfq_bclob=ib^sfkd=qeb=prjjfq

Australian CIO Summit 2012Implementing change in The Westpac Group

Jim BurkeChief Information Officer Westpac Institutional Bank 23 - 25 July 2012

2012. Westpac Banking Corporation. ABN 33 007 457 141 Al rights reserved. Information in this document is confidential. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical or otherwise, for any purpose, without the express written permission of the Author.

• Westpac Banking Corporation was founded in 1817 and was the first bank established in Australia (Bank of NSW).

• In 1982, we merged with the Commercial Bank of Australia & became Westpac Banking Corporation. In 2008, Westpac merged with St. George Bank Limited.

• The Westpac Group has branches and controlled entities throughout Australia, New Zealand and the Pacific and maintains offices in key financial centres around the world including the UK, USA, Hong Kong, China, Singapore, Indonesia and India.

• We provide a broad range of financial services in these markets, including retail, business, institutional banking and wealth management services.

An overview of The Westpac Group

Our Operating Model & Brands

wealth management services.

• As at 30 September 2011, The Westpac Group employed approximately 38,000 people globally, had total assets of $670.2 billion, a market capitalisation of $61.6 billion and our NPAT was $6.9 billion.

• About 572,000 people and institutions in Australia and overseas are Westpac shareholders.

• The Westpac Group has 3 key customer facing divisions through which we serve our 12.2 million customers:

1. Australian Financial Services (AFS);

2. Westpac Institutional Bank (WIB) and ;

3. Westpac New Zealand.

Page 3

Our Strategic Intent & Investment Program

Strategic Investment Priorities (SIPs)

• Two years ago, Westpac embarked on a journey to transform the organisation through an ambitious portfolio of investments that would ultimately touch every part of the organisation, significantly improve the way we interact with our customers and position the Group for strong future growth.

• Today, our $2bn Strategic Investment Priorities (SIPs) are delivering benefits that are having a real impact.

Strategic Intent

Page 4

Payments Transformation

Online Transformation

Wealth Transformation

Banksmart

Deposit Growth

Secured Lending

Cards & Collections

Group Customer Master

Enterprise Services Bus

Enterprise Perimeter Security

Testing Transformation

Data Centres Transformation

Integrated Migration Transformation

Information Management

• The Payments platform and systems support the payments products that all customer segments use (such as BPAY, Payroll & Direct Entry) as well as the clearing and settlement activities for the Bank. This includes both domestic & international, wholesale & retail, real time and overnight batch processes.

• On average, Westpac clears and settles around 26 million transactions per day with a value of approximately $150 billion.

• In 2007, the Payments Transformation Program was initiated to address four key areas of concern that are putting our business at risk:-

1. Current customer experience leaves significant room for improvement;

2. Lack of system reliability with frequent outages or process breakdowns impacting both customers and our market position including relationships with other banks and regulators;

3. High cost and complex processes and infrastructure result in errors and re-work that are often difficult to recover and result in a poor customer experience; and

4. Lack of flexibility to respond to existing and future market and regulatory changes – including innovation.

Payments SIP - the ecosystem that underpins the Bank

International & Wholesale Payments Domestic Payments POS/ATM Single Exchange Settlement

• C rea te a seam less an d integra ted cu stom er experien ce ac ross co reso lut ionsB e easy to u seBe easy to use

Enhance ser vice &

redu ce cos t

E nhan ce

se rv ice & redu ce co st

Add va lu eAd d va lue

Be 1 00%

re liable

Be 100% reliab le

B e a lead erBe a leader

• E nhance and re-en g in ee r add itiona l paym ent end- to -end pro cesses an d customer se rvice capabil it ie s

• Leverage cus tom er in fo rm a tion to prov ide in fo rm ation -based va lu e added

so lut ions an d s upp ort the c us tom er’s va lue cha in

• Im prove rel iab i li ty by u pgrad ing co re paym ents IT sy s tems in l ine w ith a

s im pl if ied, e nte rprise w ide IT a rchite cture

• Prom ote indus try inno va tion, launching new prod ucts to m ee t emerg ing

customer need s

• C rea te a seam less an d integra ted cu stom er experien ce ac ross co reso lut ionsB e easy to u seBe easy to use

Enhance ser vice &

redu ce cos t

E nhan ce

se rv ice & redu ce co st

Add va lu eAd d va lue

Be 1 00%

re liable

Be 100% reliab le

B e a lead erBe a leader

• E nhance and re-en g in ee r add itiona l paym ent end- to -end pro cesses an d customer se rvice capabil it ie s

• Leverage cus tom er in fo rm a tion to prov ide in fo rm ation -based va lu e added

so lut ions an d s upp ort the c us tom er’s va lue cha in

• Im prove rel iab i li ty by u pgrad ing co re paym ents IT sy s tems in l ine w ith a

s im pl if ied, e nte rprise w ide IT a rchite cture

• Prom ote indus try inno va tion, launching new prod ucts to m ee t emerg ing

customer need s

• C rea te a seam less an d integra ted cu stom er experien ce ac ross co reso lut ionsB e easy to u seBe easy to use

Enhance ser vice &

redu ce cos t

E nhan ce

se rv ice & redu ce co st

Add va lu eAd d va lue

Be 1 00%

re liable

Be 100% reliab le

B e a lead erBe a leader

• E nhance and re-en g in ee r add itiona l paym ent end- to -end pro cesses an d customer se rvice capabil it ie s

• Leverage cus tom er in fo rm a tion to prov ide in fo rm ation -based va lu e added

so lut ions an d s upp ort the c us tom er’s va lue cha in

• Im prove rel iab i li ty by u pgrad ing co re paym ents IT sy s tems in l ine w ith a

s im pl if ied, e nte rprise w ide IT a rchite cture

• Prom ote indus try inno va tion, launching new prod ucts to m ee t emerg ing

customer need s

• The Payments Transformation Program is a priority battlefield that will help the Westpac Group achieve our vision.

• Five critical capabilities will be delivered to help us achieve the desired customer experience & meet our regulatory requirements:-

Page 5

• Executive Sponsorship

• Governance Framework

We drive this change through a clearly articulated Project Governance Framework & Project Execution Framework

• Project Execution Framework

• Focus on Delivery & Implementation

• Impacts – customers, employees, partners

Page 6

We will apply the same approach to achieve the same “on time and budget” track record in the Payments SIP.

People Process

Focus Areas:

• Follow through on existing successful productivity initiatives & optimise our multi brand strategy.

• Adopt ‘Agile’ methodology to prove results quickly (particularly where business requirements to create daylight aren’t yet clear)

• Execute project prioritisation as endorsed by ET.

• Drive the implementation of the new Project Execution Framework methodology (PEFm).

Focus Areas:

• The key to better performance across all our businesses is having engaged committed people. We will raise the bar on leadership development n and people management as part of this next phase, including our diversity initiatives. We have made good progress this year on our objective to improve gender equality – we now have women in around 37.5% of our leadership roles and we continue to move

Technology

Solutions

Overall

Impacts

methodology (PEFm).roles and we continue to move towards our objective of a 40% ratio by the end of 2014).

Focus Areas:

• Follow through on existing successful productivity initiatives, such as our Technology upgrade program, optimise our multi brand platform and further streamline and standardise all common or shared services.

• Continue to refine the operating model to best service international infrastrucutre & application footprint.

• Minimal SEV1 outages.

Focus Areas:

• Driving even further depth and strength in our relationships, particularly in deposits, wealth, payments, transactional banking and trade and with a focus on our high value relations managed segments such as corporate and affluent.

Page 7

A single infrastructure solution for the entire Westpac Group

Varied Regulatory Environment Innovative Technologies Group Infrastructure Solution

Page 8

Westpac in Asia

Asia Focus

• The journey thus far.

• Locations.

• Products.

• Solutions.

Fundamental capabilities to support our growth:

1. Global operating model, allowing our operations to ‘follow the sun’.

2. Compliance with domestic and offshore legislation.

3. Core, consolidated product systems and data masters.

4. Process & internal controls standardisation across geographies.

5. Multi-currency GL supporting operations across all regions.

6. Consolidated transactional and trade data, supporting Risk & Finance.

7. High performance global infrastructure supporting businesses.

Page 9

Questions

Group Strategy

WIB Strategy WIB Technology Strategy

Page 10

^ìëíê~äá~å=`fl=pìããáí=OMNO

cçääçï=ìë=çå=qïáííÉê

@ãÉ`fl=E]ãÉpìããáíëfqF=

ÜííéWLLíïáííÉêKÅçãLãÉpìããáíëfqÜííéWLLíïáííÉêKÅçãLãÉpìããáíëfq

objfkaboW=mib^pb=e^ka=fk=vlro=bs^ir^qflk=cloj=objfkaboW=mib^pb=e^ka=fk=vlro=bs^ir^qflk=cloj=objfkaboW=mib^pb=e^ka=fk=vlro=bs^ir^qflk=cloj=objfkaboW=mib^pb=e^ka=fk=vlro=bs^ir^qflk=cloj=_bclob=ib^sfkd=qeb=prjjfq_bclob=ib^sfkd=qeb=prjjfq_bclob=ib^sfkd=qeb=prjjfq_bclob=ib^sfkd=qeb=prjjfq