Investor Presentaiton

ENGAGEMENT AND CULTURE VALUES-ALIGNED CULTURE Embedding organisational values throughout NAB • • Employee engagement increased from 56 to 61, exceeding the global high performing organisation benchmark for the first time¹ The most significant driver of engagement is NAB's vision to become Australia and New Zealand's most respected bank Trust in NAB's whistle-blower processes has further improved (84) from a high base (82)1 EMPLOYEE ENGAGEMENT¹ High performing organisation benchmark of 60 61 56 44 RISK CULTURE UPDATE Banks are in the business of taking risk. NAB's aspirational risk culture is "our people understanding and living 'Do the right thing'. It's about taking the right risk, with the right controls for the right return." This applies not only to risks that might impact the bank's ability to perform, but also helping customers to manage their risk to enable them to reach their potential Culture is a driver of conduct and is a key focus area for NAB's Board and management NAB's chairman and NAB Senior Executives have signed the Banking & Finance Oath to show NAB is committed to upholding the highest ethical standards • NAB has committed to the Australian Bankers Association initiatives to increase transparency, accountability, build trust and confidence in the banking industry • NAB is making it easier for customers when things go wrong. NAB has appointed an Independent Customer Advocate to support its Retail and Small Business customers in resolving serious complaints NAB is reaffirming support for employees who blow the whistle on inappropriate conduct Advocacy, NAB values, risk and compliance are embedded into how NAB assesses and manages performance 110 2014 2015 ■NAB Engagement 2016 (1) As measured in NAB's annual employee engagement survey "Speak Up, Step Up" conducted by Right Management. Historical engagement figures have been re-stated to exclude discontinued operations and provide consistent coverage for trend over time ELECTRICITY GENERATION AND ENVIRONMENTAL FINANCING ENVIRONMENTAL FINANCING • NAB committed to five climate change actions in November 2015. This included a commitment to undertake environmental financing activities of $18 billion to 30 September 2022 to help address climate change and support the orderly transition to a low-carbon economy ELECTRICITY GENERATION EXPOSURES BY FUEL SOURCE EXPOSURE AT DEFAULT² ($bn) 5.2 5.3 5.3 5.1 5.1 4.9 3.2 3.0 3.0 2.9 2.7 . Recognised as a 'green bond pioneer' by the London Stock Exchange and Climate Bonds Initiative for work developing the Australian green bond market 3.0 1.9 2.0 2.3 2.3 2.2 2.4 • Arranged and led the $300m Victorian Government Green Bond, the world's first Climate Bond Standard Certified Green Bond issued by a semi-government authority AGGREGATE AMOUNT OF FINANCING TOWARDS $18BN TARGET¹ Mar 14 Sep 14 ■Renewable Mar 15 Sep 15 Mar 16 ■Non-Renewable Sep 16 ELECTRICITY GENERATION EXPOSURES BY FUEL SOURCE EAD $5.1bn September 2016 Green bonds $350.0m Mortgages for new home construction $5,734.4m Asset finance $57.7m $7.3bn Towards our 2022 target of $18bn (%) Commercial property $186.8m Hydro 13%. Specialised finance (incl. project finance) $702.8m Advisory services, underwriting and arranging Wind 26% $44.8m Other/Mixed Renewables 9% Fossil fuel 52% 111 (1) Corporate finance $246.3m A document outlining NAB's approach to measuring progress against its $18bn financing will be published at the same time. the 2016 Dig Deeper on 14 November 2016, and made available on the website at: www.nab.com.au/about-us/corporate-responsibility/shareholders/environmental-performance (2) Prepared in accordance with NAB's methodology (based upon the 1993 ANZSIC standard). Excludes exposure to counterparties predominantly involved in transmission and distribution. Vertically integrated retailers have been included and categorised as renewable where a large majority of their generation activities are sourced from renewable energy. More detail at https://www.nab.com.au/about-us/corporate-responsibility National Australia Bank National Australia Bank

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