1. Global Business & Personal Financial Services
Peter Flavel
General Manager, Business & Personal Financial Services
Welcome & good morning everyone to what we hope will be a very enjoyable and rewarding day for you all.
It has been nearly 18 months since the National held a similar presentation and the National has been on somewhat of a journey.
In the middle of last year we embarked on a comprehensive review of our corporate strategies with a focus on delivering sustainable growth and superior performance for our shareholders.
In January, we announced the 5 core strategies and the operating guidelines that we would be rigorously pursuing to achieve our objectives.
Structure follows strategy and in March of this year we announced a new organisational structure and key appointments designed to support our strategic direction.
Today, we embark on the next phase as we commence a series of presentations aimed at giving you a better understanding of the National’s strategies and the management who are responsible for their success. 1

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 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. 1. Global Franchise Strategy
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
We have 5 core strategies that are built on our strengths and determine what we are doing in our business.
1. The first core strategy is to aggressively grow the businesses that rely on relationship management - namely the SME, Premium and Wealth Management markets.
2. Our second core strategy is to accelerate the growth of selected global businesses. The businesses that have been currently identified are: Global Wholesale Financial Services, HomeSide, Global Securities Services
3. Our 3rd core strategy is to stake out positions in areas key to the evolution of financial services. During the last 6 months, we have made significant progress in building the foundations for this critical strategy - established a new business unit called “NOVA”, Vivid, Alice, freeonline.
4. We are managing our other businesses for value - that is focussing on efficiency and return We are committed to lowering the cost of servicing our customer base. As an example, we are currently undertaking a major global initiative called “Operation First Choice”.
5. Our final core strategy is to build diversified income streams - through either business or geographic diversity. An example is the acquisition of MLC which will significantly diversify our income streams and further remove our reliance on increasingly competitive interest margins

5. Integrated Financial Services
Past
Today
INVESTMENTS
INTEGRATED
FINANCIAL
SERVICES
COMPANY
BANK
BANK
Wealth Accumulation
Wealth Management
Wealth Protection
INSURANCE
Bancassurance is not the correct concept, is obsolete and represented adding insurance and investments to banking
alfinanz was taking the bancassurance concept a bit further
The National has developed this further into an integrated offering.
Integrated Financial Services is about understanding and providing for the full financial services needs of the customer throughout their lifecycle 6

6. Where our customers are
12.5 million customers in four geographies
4.5 million
1.5 million
0.9 million
We have 12.5 million customers spread across 4 geographies which is approximately the same number of customers that exist in the entire Australian financial services market.
In addition, we have the opportunity to access over 45 million customers that reside in the immediate markets in which we operate.
5.6 million

7. Global Franchise Model
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)

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

9. Global Retail Customer Model
Customer Relationship Management
Physical Outlets
Reduced
footprint
New concepts
ATM EFTPOS
Expanded functionality
Additional machines
eCommerce
delivery
Internet Banking
NOLT
YPL
360 degrees
Concert
Banker
Life event sales
and servicing
PC rollout
Call Centres
Expanded functionality
Transaction
Migration
24 x 7

10. Global Premium Customer Model
Direct Client
Acquisition
Mobile
Mortgage
Manager
Relationship Manager
Financial
Planning
Specialist
Customer Relationship Management
Physical Outlets
ATM EFTPOS
eCommerce
Call Centres 16

11. Global Private Customer Model
Taxation
Planning
Specialist
Financial
Planning
Specialist
Private
Banker
Estate
Planning
Specialist
Portfolio
Manager
Customer Relationship Management
Physical Outlets
ATM EFTPOS
eCommerce
Call Centres 16

12. Global Packaged Business Customer Model
External
Advisory
Services
Business
Banker
Specialist
Services
Personal Banking
/Financial Planning
Customer Relationship Management
Physical Outlets
ATM EFTPOS
eCommerce
Call Centres 16

13. Global Custom Business Customer Model
External
Advisory
Services
International Trade
/Treasury
Business
Banker
Asset
Finance
/Leasing
Specialist
Payments
Personal Banking
/Financial Planning
Customer Relationship Management
Physical Outlets
ATM EFTPOS
eCommerce
Call Centres 16

14. Needs Met per customer segment2 4 6 8
Retail
Total
Custom
Private
Package
Agribus
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
The question is not “Why should a global model be adopted?”, but “Why wouldn’t it be?”

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
Work Place
Customer
Contact Centre 2

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

21. Personal Relationship Management Capability 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 Management Capability 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 Management Potential 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