#1CommBank PERLS VIII Capital Notes Investor Presentation School Banking Codinator CAN 16 February 2016 SCHOOL SAVINGS BANK BRANCH NO. 1 Investments in PERLS VIII are an investment in CBA and may be affected by the ongoing performance, financial position and solvency of CBA. They are not deposit liabilities or protected accounts of CBA under the Banking Act 1959 (Cth) CAN#2Disclaimer This presentation has been prepared by the Commonwealth Bank of Australia ("CBA") in relation to the offer of CommBank PERLS VIII Capital Notes ('PERLS VIII") (the "Offer"). The Offer will be made in or accompanied by a copy of the Prospectus ("Prospectus"). CBA intends to lodge a replacement Prospectus which will include the margin determined after the bookbuild to be held on or about 23 February 2016. The information provided in this presentation is not investment advice and has been prepared without taking into account your investment objectives, financial situation or particular needs (including financial and taxation issues). Investors should carefully read and consider the Prospectus in full and seek advice from your financial adviser or other professional adviser before deciding to invest in the Offer. Any decision by a person to apply for the PERLS VIII should be made on the basis of information contained in the Prospectus and an independent assessment as to whether to invest, and not in reliance on any information contained in this presentation. Anyone wishing to acquire PERLS VIII will need to complete the application form in or accompanying the Prospectus during the Offer period. To obtain a Prospectus, interested investors should contact their broker or call the PERLS VIII Information Line on 1800 218 694 (Monday to Friday 8.00am - 7.30pm, Sydney time) or visit www.commsec.com.au. Investments in PERLS VIII are an investment in CBA and may be affected by the ongoing performance, financial position and solvency of CBA. They are not deposit liabilities or protected accounts of CBA under the Banking Act 1959 (Cth). This presentation is not a prospectus, product disclosure statement or other offer document under Australian law or under any other law. This presentation is not, and does not constitute, financial product advice, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this presentation nor anything contained herein shall form the basis of any contract or commitment. The distribution of this presentation, and the offer or sale of PERLS VIII, may be restricted by law in certain jurisdictions. Persons who receive this presentation outside Australia must inform themselves about and observe all such restrictions. Nothing in this presentation is to be construed as authorising its distribution, or the offer or sale of PERLS VIII, in any jurisdiction other than Australia and CBA does not accept any liability in that regard. Further PERLS VIII may not be offered or sold, directly or indirectly, and neither this presentation nor any other offering material may be distributed or published, in any jurisdiction except under circumstances that will result in compliance with any applicable law or regulations. To the maximum extent permitted by law, neither CBA, the Arrangers nor the Joint Lead Managers, or their respective affiliates, directors, officers, partners, employees, advisers and agents of each of them, make any representation, recommendation or warranty, express or implied, regarding the accuracy, adequacy, reasonableness or completeness of the information contained herein or in any further information, notice or other document which may at any time be supplied in connection with the PERLS VIII and accept no responsibility or liability therefore, including for any loss or damage howsoever occurring resulting from the use of or reliance on this presentation by any person. Neither CBA, the Arrangers nor the Joint Lead Managers accept any responsibility or obligation to inform you of any matter arising or coming to their notice, after the date of this presentation, which may affect any matter referred to in this presentation. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of, any U.S. Person (as defined in Regulation S under the U.S. Securities Act of 1933). PERLS VIII have not been and will not be registered under the U.S. Securities Act of 1933, or the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of U.S. Persons. This presentation must not be distributed or released in the Untied States or to, or relied upon by, a U.S. person or a persons acting for the account or benefit of a U.S. Person. Past performance is not indicative of future performance and no guarantee of future returns is implied or given. This presentation contains certain forward looking statements that involve risks and uncertainties. These forward looking statements are based on the beliefs of CBA's management as well as assumptions made by, and information currently available to, CBA's management, and speak only as of the date of this presentation. CBA can give no assurance that the forward looking statements in this presentation will not materially differ from actual results, and the inclusion of forward looking statements in this presentation should not be regarded as a representation by CBA or any other person that they will be achieved. 2 Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#3Overview SCHOOL SAVINGS BANK BRANCH NO. 1 Le CAN School Banking CAN Loadinster#4Overview CommBank PERLS VIII Capital Notes ("PERLS VIII") PERLS VIII are subordinated, unsecured notes issued by CBA, through its New Zealand branch Offer size Use of proceeds Face Value Term Call Date Distributions Offer Structure Minimum Application ASX quotation A$1.25 billion, with the ability to raise more or less The Offer raises Tier 1 Capital to satisfy CBA's regulatory capital requirements and maintain the diversity of CBA's sources and types of funding The net proceeds of the Offer will be used to fund CBA's business A$100 per PERLS VIII but may be reduced following a Capital Trigger Event or Non-Viability Trigger Event PERLS VIII are perpetual, meaning they have no fixed maturity date and if not Exchanged or Redeemed could remain on issue indefinitely However, on the Mandatory Exchange Date (15 October 2023), CBA must Exchange all PERLS VIII (subject to the Mandatory Exchange Conditions) CBA may Exchange or Redeem PERLS VIII earlier on the occurrence of certain events CBA may in its absolute discretion Redeem or Resell all or some PERLS VIII on 15 October 2021, subject to APRA approval PERLS VIII are scheduled to pay quarterly, floating rate Distributions which are expected to be fully franked Margin to be determined through the Bookbuild and is expected to be between 5.20% and 5.35% per annum The Offer comprises: a Reinvestment Offer - offer to Eligible PERLS III Holders; a Broker Firm Offer - offer to retail investors who are clients of a Syndicate Broker; and a Securityholder Offer - offer to eligible holders of Ordinary Shares, PERLS III, PERLS VI, PERLS VII or Colonial Group Subordinated Notes Minimum Application of 50 PERLS VIII ($5,000) and thereafter in multiples of 10 PERLS VIII ($1,000) Minimum Application does not apply to Eligible PERLS III Holders applying under the Reinvestment Offer It is expected that PERLS VIII will be quoted under code "CBAPE" on ASX 4 Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#5Capital structure to absorb losses CBA capital structure APRA requirements at 1 Jan 2016 % of earnings able to be used for discretionary payments1 Potential loss absorption 1H16 Cash NPAT A$4.8bn Total CET1 to satisfy PCR & CCB A$40.2bn CCB2 quartiles Management Buffer 100% 4th (PCR+3.5%) 60% 3rd (PCR+2.625%) 40% 2nd (PCR+1.75%) 20% 1st (PCR+0.875%) AT1 A$7.8bn T2 A$7.3bn 4.5% minimum plus any additional amount required by APRA 5 1 Discretionary payments include dividends, hybrid Tier 1 distributions and bonuses 2 The above example assumes the total Capital Conservation Buffer ("CCB") including the D-SIB buffer is 3.5% Commonwealth Bank of Australia / PERLS VIII Investor Presentation 0% CAN#6Key Features of CommBank PERLS VIII Capital Notes School Banking CAN Loadinster SCHOOL SAVINGS BANK BRANCH NO. 1 Le CAN#7Distributions Distributions Distribution Rate Dividend and capital restrictions PERLS VIII are scheduled to pay quarterly, floating rate Distributions The first Distribution is scheduled to be paid on 15 June 2016 Distributions are expected to be fully franked, but will be increased to compensate Holders to the extent that a Distribution is not fully franked Distributions are discretionary and subject to the distribution payment conditions being satisfied Distribution Rate = (Market Rate + Margin) x (1 – Tax Rate) Margin to be determined through the Bookbuild and is expected to be between 5.20% and 5.35% per annum Distributions may not be paid in certain circumstances Distributions that are not paid do not accrue and will not be subsequently paid If a Distribution is not paid then, from that Distribution Payment Date and until a Distribution is paid in full on a subsequent Distribution Payment Date, CBA cannot (subject to certain exceptions): declare or determine a dividend on Ordinary Shares; or return any capital or undertake any buy-backs or repurchases in relation to Ordinary Shares Non-payment of a Distribution will not be an event of default 7 Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#88 Summary of events that may affect PERLS VIII PERLS VIII do not have a fixed maturity date but may be Exchanged into Ordinary Shares, Redeemed or Resold. The diagram below summarises when these events could occur¹. If none of these events occur, PERLS VIII could remain on issue indefinitely and the Face Value will not be repaid 30 March 2016 Issue Date 15 October 2021 Call Date 15 October 2023 Mandatory Exchange Date (if not on the Call Date or Exchanged earlier) Each Distribution Payment Date after Mandatory Exchange Date Redemption or Resale at CBA's option (see Section 2.2 "When will the Face Value be repaid?") Redemption Resale You receive the You receive the Face Value from Face Value from CBA the Purchaser Mandatory Exchange subject to the Mandatory Exchange Conditions being satisfied (see Section 2.3 "Mandatory Exchange") Maximum Exchange Number calculated based on 50% of Issue Date VWAP If Mandatory Exchange does not occur on the Mandatory Exchange Date, then Mandatory Exchange will occur on the first Distribution Date after that date on which the Mandatory Exchange Conditions are satisfied (see Section 2.3 "Mandatory Exchange") Maximum Exchange Number calculated based on 50% of Issue Date VWAP Events that could occur at any time Redemption at CBA's option for tax or regulatory reasons (see Section 2.2 "When will the Face Value be repaid?") Automatic Exchange if a Capital Trigger Event, Non-Viability Trigger Event or Change of Control Event occurs (see Section 2.4 "Automatic Exchange on a Capital Trigger Event or Non-Viability Trigger Event" and Section 2.5 "Automatic Exchange on a Change of Control Event"). Maximum Exchange Number calculated based on 20% of Issue Date VWAP 1 Section references in the diagram are references to sections of the Prospectus Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#9Early Redemption & Resale Early Redemption Rights for CBA Resale on the Call Date CBA may Redeem PERLS VIII in the following circumstances (subject to certain conditions including prior written approval by APRA): on the Call Date (15 October 2021) - all or some PERLS VIII; or - at any time all of PERLS VIII for tax or regulatory reasons Approval to Redeem is at the discretion of APRA and may or may not be given On the Call Date (15 October 2021), CBA may elect that Resale occur in relation to all or some PERLS VIII If Resale occurs, your PERLS VIII will be purchased by a third party for a cash amount equal to their Face Value No early Exchange or Redemption rights for Holders You do not have a right to request that your PERLS VIII be Exchanged or Redeemed early for any reason To realise your investment, you can sell your PERLS VIII on ASX at the prevailing market price 9 Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#1010 Mandatory Exchange Mandatory Exchange Maximum Exchange Number Mandatory Exchange Conditions On the Mandatory Exchange Date (15 October 2023), CBA must Exchange all PERLS VIII (subject to the Maximum Exchange Number and Mandatory Exchange Conditions) for a variable number of Ordinary Shares with the benefit of a 1% discount1 If all of the Mandatory Exchange Conditions are not satisfied on that date, the Mandatory Exchange Date will be the first Distribution Payment Date after that date on which all the Mandatory Exchange Conditions are satisfied Calculated according to the formula: (Face Value) / (Relevant Percentage x Issue Date VWAP) The Relevant Percentage is 50% if Exchange is occurring on a Mandatory Exchange Date There are three Mandatory Exchange Conditions: First Mandatory Exchange Condition: the VWAP of Ordinary Shares on the 25th Business Day before (but not including) a possible Mandatory Exchange Date is greater than 56% of the Issue Date VWAP; Second Mandatory Exchange Condition: the VWAP of Ordinary Shares during the period of 20 Business Days before (but not including) a possible Mandatory Exchange Date is greater than 50.51% of the Issue Date VWAP; and Third Mandatory Exchange Condition: Ordinary Shares are listed or admitted to trading on ASX as at the Mandatory Exchange Date The First and Second Mandatory Exchange Conditions are intended to provide some protection for Holders against Exchange occurring when the price of Ordinary Shares has fallen to such a level that you would only receive the Maximum Exchange Number 1 The number of Ordinary Shares received for each PERLS VIII will have a value equal to A$101.01 (based on the Face Value (initially A$100) and the VWAP of Ordinary Share during the 20 Business Days before the Mandatory Exchange Date with a benefit of a 1% discount Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#11- Automatic Early Exchange – Non-Viability Trigger Event Non-Viability Trigger Event A Non-Viability Trigger Event occurs when APRA notifies CBA in writing that it believes: Exchange of all or some PERLS VIII (or the taking of an action in relation to other capital instruments of the CBA Group), is necessary because, without it, CBA would become non-viable; or a public sector injection of capital, or equivalent support, is necessary because, without it, CBA would become non-viable 11 Examples of situations in which a Non-Viability Trigger Event may occur Whether a Non-Viability Trigger Event occurs is at the discretion of APRA - there are currently no precedents The circumstances in which APRA may exercise its discretion are not limited to when APRA may have a concern about a bank's capital levels but may also include when APRA has a concern about a bank's funding and liquidity levels Exchange following a Non-Viability Trigger Event Maximum Exchange Number If a Non-Viability Trigger Event occurs, CBA must immediately Exchange such number of PERLS VIII (or a percentage of the Face Value of each PERLS VIII) as specified by APRA or necessary to satisfy APRA that CBA will no longer be non-viable On Exchange, Holders receive a variable number of Ordinary Shares (subject to the Maximum Exchange Number) with the benefit of a 1% discount The Mandatory Exchange Conditions do not apply and the Terms provide that Exchange occurs automatically without the need for any further act or step by CBA and that CBA will recognise Holders as having been issued Ordinary Shares Calculated according to the formula: (Face Value) / (Relevant Percentage x Issue Date VWAP) The Relevant Percentage is 20% if Exchange is occurring as a result of a Non-Viability Trigger Event Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#12Automatic Early Exchange - Capital Trigger Event Capital Trigger Event Exchange following a Capital Trigger Event Maximum Exchange Number Common Equity Tier 1 Capital Ratio A Capital Trigger Event occurs when: CBA determines; or APRA notifies CBA in writing that it believes that either or both the CBA Level 1 or CBA Level 2 Common Equity Tier 1 Capital Ratio is equal to or less than 5.125% If a Capital Trigger Event occurs, CBA must immediately Exchange such number of PERLS VIII (or a percentage of the Face Value of each PERLS VIII) as is sufficient to return the relevant Common Equity Tier 1 Capital Ratio to above 5.125% The Mandatory Exchange Conditions do not apply and the Terms provide that Exchange occurs automatically without the need for any further act or step by CBA and that CBA will recognise Holders as having been issued Ordinary Shares Calculated according to the formula: (Face Value) / (Relevant Percentage x Issue Date VWAP) The Relevant Percentage is 20% if Exchange is occurring as a result of a Capital Trigger Event The Common Equity Tier 1 Capital Ratio is the ratio of CBA's Common Equity Tier 1 Capital to its risk-weighted assets, where Common Equity Tier 1 Capital is the strongest form of capital held by CBA As at 31 December 2015, CBA's Level 2 Common Equity Tier 1 Capital Ratio was 10.2%. This equates to a surplus of approximately A$20.1bn above the Capital Trigger Event level of 5.125% CBA Level 2 Common Equity Tier 1 Capital levels (under APRA's approach) 12 Common Equity Tier 1 Capital Ratio Common Equity Tier 1 Capital (A$bn) Capital Trigger Event Capital Trigger Event (A$bn) Surplus above Capital Surplus Common Equity Tier 1 Trigger Event Capital (A$bn) 31 Dec 2015 30 Jun 2015 10.2% 40.2 5.125% 20.1 5.1% 20.1 9.1% 33.4 5.125% 18.9 4.0% 14.5 31 Dec 2014 30 Jun 2014 9.2% 32.6 5.125% 18.1 4.1% 14.5 9.3% 31.4 5.125% 17.3 4.2% 14.1 Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#13Comparison to other CBA hybrid securities There are differences between PERLS III and PERLS VIII, and PERLS VIII may not suit your investment objectives, financial situation or particular needs. If you have any questions about the differences between PERLS III and PERLS VIII, you should seek advice from your financial adviser or other professional adviser before deciding to invest in PERLS VIII. 13 Other hybrid securities issued by CBA PERLS III Issuer Preferred Capital Limited, a subsidiary of CBA CommBank PERLS VIII Capital Notes CBA PERLS VI PERLS VII CBA CBA Legal Form Preference share Initial Face Value A$200 ASX Code PCAPA Perpetual note A$100 CBAPE1 Perpetual note Perpetual note A$100 CBAPC A$100 CBAPD 3.80% per annum 2.80% per annum Margin Quarterly Distributions Call Date / Resale Date Exchange 1.05% per annum until the Step- Expected to be between 5.20% up date (6 April 2016) and 5.35% per annum and will After the Step-up date, the initial be determined through the margin increases by 1.00% per annum Floating rate, expected to be fully franked 6 April 2016 CBA may choose to exchange for Ordinary Shares on 6 April 2016 N/A Bookbuild Floating rate, expected to be fully franked 15 October 20212 CBA must Exchange on 15 October 2023 if the Mandatory Exchange Conditions are satisfied 56% of Issue Date VWAP Floating rate, expected to be fully franked 15 December 2018² CBA must exchange for Ordinary Shares on 15 December 2020 if certain conditions are satisfied $31.41 Floating rate, expected to be fully franked 15 December 20222 CBA must exchange for Ordinary Shares on 15 December 2024 if certain conditions are satisfied $44.03 CBA ordinary share price for first mandatory exchange condition Capital Trigger Event Non-Viability Trigger Event Ranking in a winding up (assuming no Exchange) Tier 1 Capital Ratio less than 5% Total Capital Ratio less than 8% No Automatically exchanges into Ordinary Shares Common Equity Tier 1 Capital Ratio equal to or less than 5.125% Yes Ranks equivalent to a preference share 1 CBA will apply for quotation of PERLS VIII on ASX. It is expected that PERLS VIII will be quoted under this code 2 Call Date/Resale is two years prior to the Mandatory Exchange Date Commonwealth Bank of Australia / PERLS VIII Investor Presentation Common Equity Tier 1 Capital Ratio equal to or less than 5.125% Yes Ranks equivalent to a preference share Common Equity Tier 1 Capital Ratio equal to or less than 5.125% Yes Ranks equivalent to a preference share CAN#14Information about CBA School Banking CAN Loadinster SCHOOL SAVINGS BANK BRANCH NO. 1 Le CAN#151H16 Financial Results Snapshot - 1H16 Results 1 Financial Operating performance³ Cash NPAT ($m) 4,804 4% Group ($m) 7,146 6% ROE (Cash) 17.2% (140) bpts Retail Banking Services ($m) 3,466 8% Cash EPS ($) 2.84 1% Business and Private Banking ($m) 1,219 5% DPS ($) 1.98 Institutional Banking & Markets ($m) 904 (5%) Cost-to-Income (Cash) NIM (%)² NIM (%) ex Treasury & Markets² Balance sheet Total Assets ($bn) Total Liabilities ($bn) 42.2% Bankwest ($m) 462 13% 2.06 Wealth Management ($m) 741 7% 2.04 NZ ($m) 550 1% FUA ($bn, average) RWA ($bn) Provision to Credit RWAs (bpts) Capital & funding 903 6% CET1 (APRA) 14.3% N/A CET1 (International) 10.2% 100 bpts 843 5% LT Wholesale Funding WAM (yrs) 3.9 143 7% Deposit Funding (%) 64% 1% 393 11% Liquidity Coverage Ratio (%) 123% Large 1.11% (14) bpts Leverage Ratio (APRA) % 5.0% N/A5 1 All movements on prior comparative period unless stated otherwise 2 Movement on prior half 15 3 Operating performance is Total Operating Income less Operating Expense 4 Analysis aligns with the APRA study entitled "International capital comparison study" (13 July 2015) 5 The Group commenced disclosure of its leverage at 30 September 2015, thus no comparatives have been presented Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#16Sound credit quality Loan Impairment Expense CBA Group (bpts) 73 41 1.0% Home Loan Arrears 90+ days Bankwest RBS ASB 0.0% Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Troublesome and Impaired Assets $bn Group Impaired 9.5 8.2 Commercial troublesome 25 45 7.0 4.3 6.5 21 20 6.0 5.9 20 3.9 16 16 17 3.4 3.4 2.9 2.8 5.2 4.3 3.6 3.1 3.1 3.1 FY09 FY10 FY11 FY12 Pro Forma FY13 FY14 FY15 1H16 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 LIE (Loan Impairment Expense): Basis points calculated as a percentage of average Gross Loans and Acceptances (GLA). FY09 includes Bankwest on a pro-forma basis and is based on impairment expense for the year. Statutory Loan Impairment 1 Expense for FY 10 48 bpts, FY 13 21 bpts and FY14.16 bpts. Consumer Home Loan Arrears excl. Sta Ritory Lean Impair, Commonwealth Portfolio Loan (RBS only) and Residential Mortgage Group (RBS only) loans. CAN#17Strong capital position bpts CET1 122 (28) 131 (77) (38) 10.2% 9.2% 9.1% 8.0% 14.3% Dec 14 APRA Jun 15 APRA Share Issue Jun 15 Final Dividend (Net of DRP) Cash NPAT Underlying Credit RWA 1 Other 2 Dec 15 APRA APRA Min 2016 Dec 15 Int'l 3 1 Excludes impact of FX and change in regulatory treatments. 2 Primarily relates to growth in IRRBB RWA and the impact of Credit RWA regulatory treatments. 3 Analysis aligns with the APRA study entitled "International capital comparison study" (13 July 2015). Commonwealth Bank of Australia / PERLS VIII Investor Presentation 17 CAN#18Funding and liquidity CBA's term maturity profile as at 31 December 2015 ($bn) 18 $ Billions 35 20 15 10 50505050 2016 2017 2018 2019 2020 2021 >2021 FY Long Term Wholesale Debt Covered Bonds CBA's funding by type as at 31 December 2015 CBA's liquid assets as at 31 December 2015 ($bn) $bn 1% 2% 3% 4% 160 1401 Customer Deposits 140 9% LCR 120 ST Wholesale Funding¹ 66 123% 100 LCR LT Wholesale Funding ≥ 12 months 80 Covered Bonds 60 113 Min (100%) 40 74 17% LT Wholesale Funding < 12 months 64% 20 RMBS 0 Net Cash outflows Liquidity Hybrids ■Net cash outflows High quality liquid assets ■Committed liquidity facility 1. Includes central bank deposits and liabilities due to other financial institutions (including collateral received) 1. Liquids are reported net of applicable regulatory haircuts. Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#19K Bank Hybrid Securities Basics School Banking CAN Loadinster SCHOOL SAVINGS BANK BRANCH NO. 1 Le CAN#20Bank hybrid securities basics An interactive module on bank hybrid securities basics is available to potential investors to help them understand bank hybrid securities, their features and risks. It is available from www.commbank.com.au/about- us/shareholders/securities/bank-hybrid-securities-basics.html, and can be found by searching hybrid securities basics on www.commbank.com.au Information about the different ways to measure returns on bank hybrid securities is also available Menu Bank hybrid securities and you How to use 20 WELCOME TO BANK HYBRID SECURITIES BASICS Welcome to this module on basic things we think you should know about investing in bank hybrid securities. This is an interactive module and you will have an opportunity to answer questions to test your understanding. Start Learning > What will How you invest you learn? in a bank Comparison of investments Risks of bank hybrid securities Benefits of bank hybrid securities in a bank Commonwealth Bank of Australia / PERLS VIII Investor Presentation How to monitor a bank's financial position Things to do before investing in bank hybrid securities CAN#21Key Dates & Contacts School Banking CAN Loadinster SCHOOL SAVINGS BANK BRANCH NO. 1 Le CAN#22Key Dates Key dates for the Offer Lodgement of Prospectus with ASIC Securityholder Offer Record Date Bookbuild Announcement of Margin Opening Date for the Offer Closing Date for the Offer Issue Date Commencement of deferred settlement trading Despatch of Holding Statements Commencement of trading on normal settlement basis Key dates for CommBank PERLS VIII Capital Notes First Distribution payment date¹ Call Date Mandatory Exchange Date² Key dates for Eligible PERLS III Holders Reinvestment Offer Record Date Last day of ASX trading for PERLS III Opening Date for the Reinvestment Offer Closing Date for the Reinvestment Offer Record date for final distribution on PERLS III Reinvestment Date Issue Date Offer _ when CommBank PERLS VIII Capital Notes are Issued under the Reinvestment Payment date for final distribution on PERLS III Exchange date for PERLS III which did not participate in the Reinvestment Offer 16 February 2016 22 February 2016 23 February 2016 24 February 2016 24 February 2016 5.00pm (Sydney time) 18 March 2016 30 March 2016 31 March 2016 1 April 2016 4 April 2016 15 June 2016 15 October 2021 15 October 2023 22 February 2016 24 February 2016 24 February 2016 5.00pm (Sydney time) 18 March 2016 29 March 2016 30 March 2016 30 March 2016 6 April 2016 6 April 2016 22 1 Distributions are scheduled to be paid quarterly in arrears on the Distribution Payment Dates (15 March, 15 June, 15 September and 15 December each year). Distributions are discretionary and subject to the distribution payment conditions being satisfied 2 If the Mandatory Exchange Conditions are not satisfied on that date, then the Mandatory Exchange Date will be the first Distribution Payment Date after that date on which the Mandatory Exchange Conditions are satisfied Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#23Contacts Issuer Commonwealth Bank of Australia Paolo Tonucci, Group Treasurer +61 2 9303 1711 Tricia Ho-Hudson, Head of Capital & Regulatory Strategy +61 2 9118 1319 Arrangers Commonwealth Bank of Australia Goldman Sachs Australia Pty Limited Truong Le +61 2 9118 1205 Michael Cluskey +61 3 9679 1138 Sally Choi +61 2 9117 1214 Amanda Taylor +61 2 9320 1365 Joint Lead Managers ANZ Securities Limited Morgans Financial Limited Morgan Stanley Australia Securities Limited J.P. Morgan Australia Limited UBS AG, Australia Branch Westpac Institutional Bank Adam Vise +61 3 8655 9320 Steven Wright +61 7 3334 4941 Bob Herbert +61 3 9256 8937 Andrew Best +61 2 9003 8383 Andrew Buchanan +61 2 9324 2617 Ryan Evans +61 2 8254 4694 Tariq Holdich +61 2 8037 0622 Anthony Kirk +61 7 3334 4898 Hamish Head +61 3 9118 2254 Duncan Beattie +61 2 9003 8358 Joe Hunt +61 2 9324 3718 Robert Moulton +61 2 8253 4584 23 Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#24Appendix: CommBank PERLS VIII Capital Notes - Key Benefits and Key Risks¹ 24 Key Benefits of PERLS VIII PERLS VIII are scheduled to pay a floating Distribution Rate PERLS VIII Distributions are scheduled to be paid quarterly in arrears PERLS VIII pay a fixed Margin above the Market Rate to be determined through the Bookbuild PERLS VIII Distributions are expected to be fully franked PERLS VIII are expected to be listed on ASX and may be traded on ASX PERLS VIII provide investors an opportunity to diversify their investment portfolio Key Risks of PERLS VIII Investments in PERLS VIII are an investment in CBA and may be affected by the ongoing performance, financial position and solvency of CBA and other risks associated with CBA's businesses. They are not deposit liabilities or protected accounts of CBA under the Banking Act Investments in PERLS VIII are subordinated and unsecured liabilities. On a winding up of CBA, there is a risk that you may lose some or all of the money you invested in PERLS VIII Distributions are discretionary and subject to the distribution payment conditions being satisfied. Distributions that are not paid do not accrue and will not be subsequently paid PERLS VIII may be Exchanged for Ordinary Shares on the Mandatory Exchange Date (subject to the Maximum Exchange Number and Mandatory Exchange Conditions) or on another date if certain events occur. This includes if a Capital Trigger Event, Non-Viability Trigger Event or Change of Control Event occurs. There is a risk that on Exchange you may receive a number of Ordinary Shares with a value which is significantly less than the Face Value, including as a result of the application of the Maximum Exchange Number and of the market price of Ordinary Shares at the time you may sell your Ordinary Shares Dividends are payable at the absolute discretion of CBA and, in a winding up of CBA, claims of holders of Ordinary Shares rank behind claims of holders of all other securities and debts of CBA. In contrast, distributions on PERLS VIII are payable in accordance with the Terms and claims of PERLS VIII holders rank ahead of holders of Ordinary Shares - If a Capital Trigger Event or Non-Viability Trigger Event occurs and the Exchange is not effective and CBA has not otherwise issued Ordinary Shares within 5 Business Days of the event, then Holders' rights under the relevant PERLS VIII will be terminated. Your investment in the relevant PERLS VIII will lose all of its value – the Face Value will not be paid and you will not receive any compensation. This could occur if CBA was prevented from issuing Ordinary Shares by circumstances outside its control, for example, if CBA was prevented by an applicable law or order of any court, or action of any government authority from issuing Ordinary Shares 1 You should read Section 5 "Risk of CommBank PERLS VIII Capital Notes" in full before deciding to invest Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#25Appendix: CommBank PERLS VIII Capital Notes - Key Benefits and Key Risks¹ 25 Key Risks of PERLS VIII (cont.) PERLS VIII may not be Exchanged on the scheduled Mandatory Exchange Date and you may continue to hold PERLS VIII indefinitely CBA may redeem PERLS VIII on the Call Date or at any time for tax or regulatory reasons, subject to APRA's prior written approval. APRA's approval may or may not be given You do not have a right to request that your PERLS VIII be Exchanged or Redeemed early CBA may raise more debt and issue further securities which rank equally with or ahead of PERLS VIII, whether or not secured The Distribution Rate will fluctuate with changes in the Market Rate. There is a risk the Distribution Rate may become less attractive compared to returns on comparable securities or investments The market price of PERLS VIII on ASX will fluctuate and you may lose some of the money you invested in PERLS VIII if you sell them Liquidity of PERLS VIII on ASX may be low and you may not be able to sell your PERLS VIII at an acceptable price or at all A significant portion of CBA's business is related to Australia and CBA may be adversely affected by a downturn in the Australian economy CBA may be adversely affected either directly or indirectly by disruption to global markets CBA is subject to extensive regulation. Changes in regulation may adversely affect CBA's performance or financial position CBA may incur losses associated with exposures to customers, counterparties and suppliers who default on their obligations to CBA A significant proportion of CBA's wholesale funding is obtained, and a proportion of its profits are earned, in currencies other than Australian dollars. CBA hedges these risks where appropriate but there is no guarantee that CBA's hedging strategy will be sufficient or effective CBA is subject to operational risks and may incur losses CBA is subject to information security risks, including cyber attacks, and data security breaches CBA's ability to raise capital and funding may be adversely affected by changes in credit ratings CBA is subject to intense competition which may adversely affect its performance CBA may be adversely affected by harm to its reputation amongst customers and investors Acquisitions of other businesses by CBA may adversely affect its performance and financial position for example due to difficulties in integrating systems and processes or not achieving expected cost savings CBA's businesses or customers may be affected by catastrophic events 1 You should read Section 5 "Risk of CommBank PERLS VIII Capital Notes" in full before deciding to invest Commonwealth Bank of Australia / PERLS VIII Investor Presentation CAN#26THANK YOU CAN