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26 27 RESHAPING OUR BUSINESS PRODUCTIVITY CONSIDERATIONS • Managing for positive 'jaws' • Investment spend more focused on customer and productivity initiatives - Productivity savings – third party expenses, process automation, customer journeys, PBOP FY16 THIRD PARTY PAYMENTS PROCESS AUTOMATION Postage & Telecommunications 10% Marketing 5% Professional Services 7% Property 11% $3.8bn Piloting use of process automation technology Other 33% Seven processes automated in 2H16 IT 35% GRANULAR FOCUS ON ROE CASH ROE v PEER AVERAGE (EX SPECIFIED ITEMS)¹ 15.0% 16.8% 13.8% Pipeline of >30 to be delivered in FY17 CUSTOMER JOURNEYS Redesigning customer journeys end-to-end to improve experience and efficiency Merchant acquiring example • Four day improvement in customer setup 16.0% ~2x increase in multi-product sales 14.3% 14.3% Sep 14 EMBEDDING ROE FOCUS Sep 15 ■ NAB Peer Average • Performance Unit framework enables granular ROE focus $5.8bn of Corporate and Institutional loan run-off in FY16 - single digit ROES. Further opportunities • ROE is one of the main metrics in Business Banker performance scorecards ROE 'TILT' IN BUSINESS BANKING Sep 16 2H16 ROE ex mortgages >2x higher . Opportunities through better limit management and collateral matching NAB Business, Agri, Health & Private Wealth Institutional, Corporate, Corporate Property & other (1) NAB September 2014 and September 2015 ROE are as reported (excluding specified items), i.e. includes CYBG and 100% of NAB Wealth's life insurance business. September 2015 peer average ROE assumes average of half year ROE excluding specified items for ANZ. NAB September 2016 ROE is on a continuing operations basis. September 2016 ROE peer average based on last reported peer result for ANZ, CBA, WBC and excluding specified items for ANZ National Australia Bank National Australia Bank

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