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Investor Presentaiton

GROUP CASH EARNINGS RECONCILIATION TO STATUTORY NET PROFIT • NAB uses cash earnings (rather than statutory net profit attributable to owners of NAB) for its internal management reporting purposes and considers it a better reflection of the Group's underlying performance. Accordingly, information is presented on a cash earnings basis unless otherwise stated. . Cash earnings is not a statutory financial measure and is not presented in accordance with Australian Accounting Standards nor audited or reviewed in accordance with Australian Auditing Standards. Cash earnings is calculated by excluding discontinued operations and certain other items which are included within the statutory net profit attributable to owners of NAB. These non-cash earning items, and a reconciliation to statutory net profit attributable to owners of NAB, are presented in the table below. Prior period non-cash earnings have been restated to exclude discontinued operations. • The definition of cash earnings is set out on page 2 of the Full Year Results Announcement, and a discussion of non-cash earnings items and a full reconciliation of the cash earnings to statutory net profit attributable to owners of NAB is set out on pages 98 - 100 of the 2020 Full Year Results Announcement. The Group's financial statements, prepared in accordance with the Corporations Act 2001 (Cth) and Australian Accounting Standards, and reviewed by the auditors in accordance with Australian Auditing Standards, are set out in the 2020 Full Year Results Announcement. Cash earnings Non-cash earnings items (after tax) FY20 ($m) FY20 v FY19 3,710 (36.6%) 2H20 ($m) 2H20 v 1H20 1,994 16.2% Distributions Fair value and hedge ineffectiveness 39 (53.0%) 17 (22.7%) (34) 41.7% (54) Large Amortisation and impairment of acquired intangible assets (217) Large Large Net profit from continuing operations 3,498 (40.8%) 1,957 27.0% Net loss after tax from discontinued operations (939) (15.2%) (711) Large Statutory net profit attributable to owners of NAB 2,559 (46.7%) 1,246 (5.1%) 118 National Australia Bank
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