Funding Investments in Australia Institutional Banking & Markets Australian American Chamber of Commerce Houston Energy Conference Funding Investments in Australia Scott Speedie Global Head of Specialized Finance Commonwealth Bank of Australia January 2014 Strictly Private and Confidential

The Commonwealth Bank of Australia Australia’s largest bank by market capitalisation 14.6m Customers 3,000 Institutional Clients KEY FINANCIALS CREDIT RATING S&P Moody’s Fitch Statutory NPAT A$7,677m Cash NPAT A$7,819m Return on equity 18.4% Total assets A$754b Cash earnings per share A$4.86 Dividend per share A$3.64 Basel III CET1 (International) 11.0% Industry specialisation and understanding make the Bank an ideal partner providing balance sheet strength and broad product capability Oil & Gas industry teams placed in key commercial and financing hubs. CBA is a Bank that actively deploys balance sheet into our client’s businesses Broad range of debt products spanning project, corporate and acquisition finance Strong global financial markets capabilities across commodities, foreign currency and interest rates The only domestic Australian bank with a full in-house equity business, focused on retail and institutional clients LIQUIDITY (AUD) GLOBAL COMPARISON Market Capitalisation (US$bn) Global Market Capitalisation Ranking Senior Debt Rating Moody’s S&P 268.02 1 A2 A+ 243.52 2 A3 A 232.44 4 Aa3 198.11 6 Baa2 A- 183.81 7 124.01 10 Aa2 AA- 104.29 15 92.91 18 Baa1 $101b June 2011 $135b June 2012 $137b June 2013 Source: Bloomberg. As at 13 January 2014. Credit rating: S&P

Funding Options for Upstream Companies Equity Project Finance Reserve-Based Lending Balance Sheet Lending Development Finance Small Borrowing Base Large Borrowing Base Corporate Credit Facility refinance refinance refinance Large Portfolio of Producing Fields Development Assets plus Exploration Acreage Several Producing Fields plus Permitted Development Assets Few Producing Fields Single Field Development Exploration Start-Up Development of an E&P Company Mature E&P Funding Investments In Australia

Australian Equity Market Where does Australia stand? Market Capitalisation of Global E&P Stocks Australian Secondary Issuances (A$bn) Source: CBA and Bloomberg Funding Investments In Australia

Australian Loan Markets Australian Loan Market Volumes (A$bn)

LNG – Advent of Major Australian Energy Projects 7 LNG projects in Australia currently under construction – A$194bn total capex value Australia benefits from geographic proximity to Asia Ichthys LNG Project (A$42bn): Largest project finance globally Quality sponsors – Inpex (Japan) and Total (France) A$20bn of debt – funded by export credit agencies and commercial banks Forecast A$3.5bn p.a. contribution to GDP Supported by long term take or pay LNG sales contracts into Asia LNG prices are oil-linked Funding Investments In Australia

Project Finance/Development Finance Lending to complete a specific project Repayment of debt from project cash flow Security over borrower and assets Lenders’ recourse is often limited to the project itself Australia – 2nd largest market for project finance (after the United States) with 10% global share of project finance in 2013 Development project finance is common and characterised by Extensive technical due diligence P90 production profile Guarantee from the sponsor No dividends or asset sales Restrictions on exploration expenditure Funding Investments In Australia

Reserve Based Lending The structure of choice of the independent sector – flexible, revolving credit facility Reserves based lending for multiple fields Requires diversification – no single asset must dominate portfolio P50 reserves can be used for producing assets Aggregate cash flows considered Covenants and pricing are lower than for single-asset financing $ time Facility size, with amortisation to zero Declining value of Asset 1 Addition of new assets allows full utilisation of facility Extension of availability Funding Investments In Australia

Corporate Debt (A$’bn) Balance Sheet Lending Debt capacity linked to past performance Debt covenants linked to balance sheet/ P&L rather than cash flow Suited to larger independents Fewer restrictions Lower maintenance Increased flexibility Cheapest source of debt finance for the independent Company Corporate Debt (A$’bn) Total Assets (A$’bn) Market Cap (A$’bn) 4.3 24.8 31.4 3.7 17.0 13.8 2.9* 7.1 11.0 Source: Bloomberg, company annual reports * Wholly comprised of Oil Search’s guarantee of its portion of debt associated with PNG LNG project; guarantee falls away on completion.

Australian Bond Markets Significance of the A$ MTN market in a global context has grown since 2007 A$ MTN Monthly Issuance Volumes Monthly Bond Redemptions The A$ MTN market witnessed strong issuance activity in 2013, with total volume reaching A$97.2bn (2012: A$99.9bn). While SSAs and FIs have dominated issuance, consistent flows of corporate supply has been positively supported by investors. The A$99bn of maturities over FY14 (FY13 A$72bn) is expected to drive continued support for primary issuance Redemptions (A$bn) A$ MTN Issuance by Industry A$ MTN Issuance by Sector Mining & Mining Services issuers raised A$2.3bn in the A$MTN market in 2013, accounting for 24% of total issuance (2012: 15%) Corporate issuance remains under-represented in the A$ MTN market in 2013. The overall contribution to total market supplies has improved in recent years to 10.2% (2012: 9.6% and 2011: 5.6%) as issuers have taken advantage of the very favourable demand conditions Source: CBA and Bloomberg as at 21 January 2014

Highlight Transactions

Client Coverage Group Project Finance Specialized Finance Grant Willis Managing Director Natural Resources P: +44 20 77106990 E: grant.willis@cba.com.au 85 Queen Victoria St, London EC4V4HA Michael Thorpe Managing Director P: +61 (0)2 9118 4337 E: thorpemi@cba.com.au 201 Sussex Street Sydney 2000 Specialized Finance Scott Speedie Managing Director P: +61 (0)2 9118 4333 E: scott.speedie@cba.com.au 201 Sussex Street Sydney 2000 Andrew Loadsman Executive Director Natural Resources P: +61 (0)2 9118 4330 E: andrew.loadsman@cba.com.au 201 Sussex Street Sydney 2000 Jon Verlander Executive Director P: +1 713 3419751 E: jonathan.verlander@cba.com.au 811 Main Street, Suite 4675, Houston, TX, USA Jeff Heazlewood Director Natural Resources P: +61 (0)2 9118 4339 E: jeff.heazlewood@cba.com.au 201 Sussex Street Sydney 2000 Charles Davis Executive Director P: +61 (0)2 9118 4304 E: charles.davis@cba.com.au 201 Sussex Street Sydney 2000

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