SUNCORP METWAY LTD Steve Jones, MD & CEO. JB Were, Singapore June 6, 2001

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2 SUNCORP METWAY LTD Steve Jones, MD & CEO JB Were, Singapore June 6,

3 1996 Merger SUNCORP METWAY 3

4 Stockmarket position Market cap A$6.2b, ranking 24* Australian All Ords Index weighting: 0.83%* MSCI (Australia) weighting: 0.89% *Includes EINs that convert to shares in Oct,

5 Allfinanz leader in Australia 6th largest bank 7th largest insurance company Funds under management $6.7 billion Total assets of $27.7 billion* Largest company in Qld *Including life insurance policyholders interests 5

6 Geographic Coverage QLD Qld share and rank Auto insurance 28%, 1st Home insurance 27%, 1st Third Party ins 55%, 1st Lending 17%, 3rd Agri-lending 25%, 2nd Deposits 20%, 1st 1 VIC NSW NSW and Victoria Operations well established Interstate provided 37% of 99/00 lending 7

7 SML Business Mix Bank Loans $18.68 billion Commercial 31% Consumer 3% Leasing 8% Residential 58% 7

8 SML Business Mix Bank Loans $18.68 billion GI Premium $750 million Commercial 31% Commercial 16% Consumer 3% Leasing 8% CTP 48% Motor 22% Residential 58% Home 14% 8

9 Profit performance ($millions) % Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 9

10 Earnings per share (cents) diluted basic 10

11 Return on equity (%) Basic Diluted Dec 97 Jun 98 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Excluding one-off expenses 11

12 Banking cost-to-income (%) * CBA SGB WBC SME NAB ANZ (Latest published accounts. SME figures are for banking only) *Excluding one-off expenses and changes in accounting policies 12

13 Banking cost-to-assets (%) * CBA SGB WBC NAB ANZ SME Latest published figures. SME figures are for banking only *Excluding one-off expenses and changes in accounting policies 13

14 GI expense ratios (%) Zurich Merc Mut CGU QBE RACQ/GIO Allianz SME NRMA Royal&Sun Source for competitors: KPMG Insurance Industry Survey Jun 99 figures. 14

15 Confidence Interval (% probability that provisions are sufficient) HIH Zurich GIO General RSA QBE NRMA SME Source: Macquarie Bank 15

16 Balance sheet strength Very strong reserves, conservative provisioning High solvency ratio in general insurance company (2.67 times APRA minimum) 27% prudential margin S holder s funds Pru margin Estimated claims liability $1 Bln 10% capital adequacy ratio in bank Claims + provs & capital 16

17 Goals Going Forward Grow Revenue faster than industry - % will vary by line of business #1 in Customer Satisfaction in each LOB - killer initiatives & CVA Improve Productivity 5~10% p.a. - work outs, CI & Six Sigma World-Class Employee Satisfaction ROE and EPS growth in top third of peers 17

18 Three Avenues for Extra Growth (Illustrative) Prod line opptys Alliances Allfinanz Business as usual +/- industry avg Current Revenue

19 Is Allfinanz... A value proposition to customers? or A business strategy with competitive advantages 19

20 Allfinanz competitive advantage Synergies in operations Lower cost of new sales Lower cost for ongoing service Higher customer retention 20

21 Leader in Cross Selling Products per main bank customer SGB CBA WBC CGH ANZ NAB SME *SGB includes Advance, Bank SA; WBC includes Bank of Melb, Challenge, AGC; ANZ includes Town & Country, Esanda; CGH includes Colonial State Bank, First State Funds Management, Prudential, Legal & General, Trust Bank; CBA excludes CGH; NAB excludes MLC. Roy Morgan Research

22 Cross-sell potential Only Banking 500k 14k 327k 42k 41k Only Gen Ins 1.3m Total 2.3 million customers Life&Super 51k For SME, 0.1 PPH ~ $15m PBT Customers by business line 22

23 Diamond Example Demonstrate internet capability and train customer to use for transactions Needs Assessment Needs car insurance Reveals customer has $50K cash and needs financial advice Reduced Cost to Serve Home loan customer seeking car loan Cross Sell Car loan and insurance Margin loan Unit trust product Automatic pay-by-month for car loan and insurance Monthly direct deposit to margin loan account Value Added Linkages 23

24 Goals Going Forward Grow Revenue faster than industry - % will vary by line of business #1 in Customer Satisfaction in each LOB - killer initiatives & CVA Improve Productivity 5~10% p.a. - work outs, CI & Six Sigma World-Class Employee Satisfaction ROE and EPS growth in top third of peers 24

25 Customer satisfaction Car Insurance example % of customers likely to continue holding products 93% 40% Customer rating of service /

26 Goals Going Forward Grow Revenue faster than industry - % will vary by line of business #1 in Customer Satisfaction in each LOB - killer initiatives & CVA Improve Productivity 5~10% p.a. - work outs, CI & Six Sigma World-Class Employee Satisfaction ROE and EPS growth in top third of peers 26

27 Six Sigma Example: Reduce Returned Mail Correct Address On-time delivery Mail Sent to Customers Incorrect Address Rework, r ing, additional expense Customer dissatisfaction Mail Returned 27

28 Six Sigma Example: Reduce Returned Mail Correct Address On-time delivery Mail Sent to Customers Incorrect Address Rework, r ing, additional expense Customer dissatisfaction Mail Returned Six Sigma reduces defect rate by 70% Produces savings of $263K p.a. Quantifiable bottom-line benefits ~ $ 250 K p.a. per project Finite timeframe - 4 to 6 months per project 28

29 Goals Going Forward Grow Revenue faster than industry - % will vary by line of business #1 in Customer Satisfaction in each LOB - killer initiatives & CVA Improve Productivity 5~10% p.a. - work outs, CI & Six Sigma World-Class Employee Satisfaction ROE and EPS growth in top third of peers 29

30 Employee Satisfaction Survey results World best practice (4.1) Aust best practice (3.8) Aust average (3.5) Actual Actual Target 30

31 In Closing Successful merger has built a strong base Significant opportunities for above system growth Key to strategies the execution, vs the idea Proven approaches from SME merger & industry being applied 31