#1Morgan's Queensland Investor Conference Mark Ley Head of Investor Relations 21 October 2015 One Company SUNCORP Many Brands GROUP#22 Morgan's Queensland Investor Conference Agenda One Company SUNCORP Many Brands GROUP Suncorp's history and operations Insurance - a fascinating industry! Positive industry developments for Suncorp Bank and Life Suncorp Group Limited October 2015 Suncorp's diversified financial services business model#33 Morgan's Queensland Investor Conference Suncorp Group Leading financial services brands in Australia and New Zealand Top 20 ASX listed company $17 billion market capitalisation at 16 Oct 2015 $96 billion in group assets 14,500 employees in Australia and New Zealand 9 million customers End to end ownership of brands Suncorp Group Limited One Company SUNCORP Many Brands GROUP SUNCORP BANK AAMI SUNCORP Insurance GIO Asteron Life InsureMyRide Apia vero JUST CAR INSURANCE SHANNONS AA Insurance SHARE THE PASSION IS bingle terri scheer .com.au CIL CARAVAN AND RV INSURANCE October 2015#44 Morgan's Queensland Investor Conference Insurance – risky business - Three key requirements Distribution » Trust purchase » Be 'on the radar' One Company SUNCORP Many Brands GROUP Price the risk » Understand the risk » Expertise in underwriting » Customer service Manage claims Suncorp Group Limited October 2015 » Scale as a competitive advantage#55 Morgan's Queensland Investor Conference Distribution - trusted brands Differentiated offerings, preserving core elements of each brand AAMI Lead national brand: Relieve stress Competitive price positions. Personal Insurance market share • in each State (1) GIO State based brand in NSW and VIC: Providing certainty Service excellence and more comprehensive cover NT 11% Qld 34% WA 15% SA 15% NSW 29% (1) Roy Morgan market shares (July 15) Suncorp Group Limited October 2015 TAS 36% One Company SUNCORP Many Brands GROUP SUNCORP Insurance Suncorp Insurance: . The must-have Queensland insurance Strong community connections • Vic 32% • Apia National life stage brand: Rewarding over 50s Showing understanding Delivering service excellence#66 Morgan's Queensland Investor Conference Suncorp Commercial Insurance Multi-channel model benefits evolving customer preferences One Company SUNCORP Many Brands GROUP Customer segments Global, Corporate, Mid Market, SME, Workers Compensation and CTP Our channels Direct Adviser Corporate partners and motor dealers Broker Brands Insurance BUSINESS INSURANCE (CTP) AAMI SUNCORPIO Resilium Resilium Insurance Broking SUNCORP Insurance verov Suncorp Group Limited October 2015#77 Morgan's Queensland Investor Conference Price the risk.... On an individual property basis St Stephens can Church Willoughby 206 Mowbray Rd Elizabeth McG School of Balet Elzabeth Lodge Nursing Home Stafford Rd 8 8 × 888 9 Zara Rd OVERALL SCORE - 8 Map Satellite FLOOD HAIL || 1 9 EARTHQUAKE 2 ར WIND RAINFALL THUNDER 4 LIGHTNING 5 Mowbray Rd BHF Mowbray Rd CYCLONE THEFT 5 TOTAL_RIF_LV 10 TOTAL_BLDSI_LV 10 TOTAL_CNTSI_LV 10 Zara Rd Zara Ro Suncorp Group Limited October 2015 88 Da Pr A HASKA A A As Pall 45 5 04919 by One Company SUNCORP Many Brands GROUP#88 Morgan's Queensland Investor Conference Manage the claims Supply chain innovations SMART motor repairs » SMART repaired 127,000 cars during FY15 with $400 average cost saving per car » Average repair time reduced to 11 hours from 5 days » Expected to grow to 30 sites and 5 SMART Plus sites during FY16 ACM Parts » Suncorp spends around $450 million per annum on car parts with average mark-ups of 400% >> Now a major direct acquirer of parts, Suncorp entered a JV with US- based LKQ, a global leader in aftermarket parts and parallel imports » Small acquisitions of salvage suppliers » Mitigating A$ driven parts inflation for SMART and Suncorp aligned repairers HomeRepair » Launched in late 2014 and focused on low complexity home repairs » Targeting an estimated saving of $300 per claim » Using innovative materials procurement, technology and workforce » Now established in Sydney, Melbourne and Brisbane One Company SUNCORP Many Brands GROUP Personal injury claims » Short-tail approach to claims resolution >> Focus on fast settlement and avoiding protracted legal disputes » Benefiting from low wage inflation and benign superimposed inflation » FY15 reserve releases of $427m (5.4% of NEP) well above the long-run expectation of 1.5% » Expect reserve releases to be well above 1.5% in the short to medium term Suncorp Group Limited October 2015#9Morgan's Queensland Investor Conference 9 The insurance business cycle Suncorp Group Limited October 2015 Distribution/Trust Manage the claim Price the risk One Company SUNCORP Many Brands GROUP#1010 Morgan's Queensland Investor Conference Suncorp's commitment to customers The most trusted insurer One Company SUNCORP Many Brands GROUP Suncorp Group Limited October 2015 Thank you... SUNCORP for Outstanding Service and assistance with our Flood Claim Paul and. Nora. Mitter#1111 Morgan's Queensland Investor Conference Suncorp Bank Operating Environment Considerations for Suncorp Bank Current operating environment >>> Low credit growth and interest rate environment >>> >>> APRA's increase in major bank risk weightings for residential mortgages to at least 25% (from 16%) levels the competitive landscape Ongoing competition for retail and business lending >>> Increasing regulatory compliance >>> >>> Subdued business confidence and political uncertainty although recent signs of improvement Prolonged drought conditions in Queensland and Northern NSW challenging agribusiness credit growth Suncorp Bank opportunities One Company SUNCORP Many Brands GROUP » Leverage A+/A1 credit rating, strong funding and capital position to improve on 3% mortgage market share >>> >>> >>> » Ongoing investment in channel and geographic expansion with well supported home lending campaigns during FY15 Leverage 'Bank of the Year' awards Growing the core franchise through 'connected customer' relationships Delivery of Project Ignite will enable timely responses to changing customer needs and market competition to support future growth Suncorp Bank's advanced risk management tools will inform decision making in line with its conservatively-set risk appetite Group-led customer base initiatives will help support growth in highly competitive segments A long history in agribusiness, a collaborative customer approach and a clear risk appetite continues to guide decisions around new business and management of customers in drought-affected areas Suncorp Group Limited October 2015#1212 Morgan's Queensland Investor Conference Suncorp Life Operating Environment Considerations for Suncorp Life Current operating environment One Company SUNCORP Many Brands GROUP >>> Economic headwinds » Regulatory reform » Technological change » IFRS/Accounting change » Changing customer behaviour » » Suncorp Life opportunities Conservatively positioned with increased reinsurance and a strengthened balance sheet Forward-looking, conservative bias towards lapse and claims assumptions Diversified distribution - IFA, Bank, Direct » Direct opportunity through General Insurance brands that are known and trusted Group-led customer base initiatives will help support growth in highly competitive segments Suncorp Group Limited October 2015#1313 Morgan's Queensland Investor Conference Suncorp's Strategic Assets Our focus Cost One Company SUNCORP Many Brands GROUP Delivering scale cost benefits on third party procured goods / services Sharing scale on infrastructure (real estate, enterprise technology) and non-unique business services Customer Enhancing value to our 9 million customer connections by deepening their relationships with Group brands Capital Culture Suncorp Group Limited October 2015 Demonstrating a diversification benefit through improved Group Risk- based Capital modelling Maintain A+/A1 credit rating Operating as 'One Company. Many Brands. One Team'#1414 Morgan's Queensland Investor Conference Suncorp Transformation Continuation of Suncorp Simplification and de-risking 2009 Stabilise 2011 Integrate ENABLED BY Building Blocks Single view of: • Claims • Pricing • People • Financials 'One Company. Many Brands' Suncorp Group Limited October 2015 ENABLED BY Simplification ⚫LSP/ NextGen • Partnering • Claims • Procurement 2015 Simplify One Company SUNCORP Many Brands GROUP 2017+ Optimised Platform ENABLED BY Optimisation • Claims transformation •Ongoing SMART rollout • Super Simplification • Business Intelligence • Technology & Procurement Cost Capital Customer Culture#1515 Morgan's Queensland Investor Conference Optimised Platform Unlocking the value for our 9 million customers Connected customers - One Company SUNCORP Many Brands GROUP 园 Simplified systems Underpinned by Business Intelligence Sitting within a secure and scalable cloud Supported by a unique way of working Suncorp Group Limited October 2015 BANK LIFE SERVICE CULTURE INNOVATION GENERAL INSURANCE CORPORATE DATA LAKE SUNCORP DATA SERVICES CLOUD ENVIRONMENT Υ RELENTLESS EXECUTION AGILE/LEAN PARTNERING#1616 Morgan's Queensland Investor Conference Suncorp's shareholder promise Simplified, de-risked financial services group One Company SUNCORP Many Brands GROUP Yield » Dividend payout ratio of 60% to 80% and return of surplus capital » Organic strategy, focused exclusively in Australia and New Zealand + » De-risked and simplified business model Growth » Efficiency-led profit growth » 'Above system' growth in key markets » Multi-brand, multi-channel approach leveraging the Group's 9 million customers Suncorp Group Limited October 2015#1717 Morgan's Queensland Investor Conference Suncorp Group Limited October 2015 Questions? One Company SUNCORP Many Brands GROUP#1818 Morgan's Queensland Investor Conference Important disclaimer One Company SUNCORP Many Brands GROUP This report contains general information which is current as at 21 October 2015. It is information given in summary form and does not purport to be complete. It is not a recommendation or advice in relation to the Group or any product or service offered by Suncorp or any of its subsidiaries. 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. This report should be read in conjunction with all other information concerning Suncorp filed with the Australian Securities Exchange (ASX). The information in this report is for general information only. To the extent that the information may constitute forward-looking statements, the information reflects Suncorp's intent, belief or current expectations with respect to our business and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices at the date of this report. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties, many of which are beyond Suncorp's control, which may cause actual results to differ materially from those expressed or implied. Suncorp undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this report (subject to ASX disclosure requirements) Suncorp Group Limited October 2015#1919 Morgan's Queensland Investor Conference 12:25 AM Suncorp Group 9:34 5930 Share History Financial Results Half year results to 31 December 2013 91330 Full year results to 30 June 2013 $13.43 Half year results to 31 December 2012 High $13.46 Low $13.30 Volume 3175871 Investor Relations App Suncorp has launched an Investor Relations application for tablets to enable easy access to a suite of investor materials. News & Announcements Friday June 13, 2014-10 47 SBKHB Completion of Off-Market Bu... Friday, June 13, 2014-08:30 Suncorp Executive Appointment Tuesday, June 3, 2014-11-20 Apia launches tailored private health... Upcoming Events Wednesday August 13, 2014 Full year results to 30 June 2014 Suncorp Group Limited October 2015 One Company SUNCORP Many Brands GROUP For all the latest news, updates and share price movements download the Suncorp Group investor relations app now. Search "Suncorp IR" on the app store or scan the QR code below.