Shorter and Faster: Transformation cycles in a transitioning economy

Presented by Chief Executive Lyn Cobley6 April 2017

Westpac Institutional Bank

Volatile markets & shorter cycles

Implications of technology & digital change

Leadership is the game changer

Global manufacturing PMI 52.9 the highest level since early 2014 & Eurozone PMI at a 68 month high

3

GlobalMegatrends

4

Fourth Industrial Revolution

Technological Breakthroughs

Shift in Economic Power

RapidUrbanisation

Climate Change and Resource

Scarcity

Demographic and Social Change

5

706050403020100

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Average company lifespan on S&P 500 Index (in years) Year (each data point represents a rolling 7-year average of average lifespan)DATA: INNOSIGHT/Richard N. Foster/Standard & Poor’s

S&P 500 Index

Australia must develop a culture of innovation

Source: Bloomberg Terminal Data. (KPMG)5

Australia Year USbnBHP Billiton 1885 198Commonwealth Bank 1911 108Westpac Banking 1817 83ANZ 1835 65National Australia Bank 1893 62Telstra 1901 46CSL 1916 39Wesfarmers 1914 35Woolworths 1924 25Macquarie Group 1970 22

United States Year USbn1. Apple 1976 6902. Google 1998 5653. Microsoft 1975 4904. Berkshire Hathaway 1955 4025. Amazon.com 1994 3866. Facebook 2004 3817. Exxon Mobil 1870 3438. JPMorgan Chase 1799 3109. Johnson & Johnson 1886 309

10. Wells Fargo 1852 283

Projections based on current data

6

7

8

9

Businesses of Tomorrow

Recognising 200 businesses today, ready to take on tomorrow

10