Australia and New Zealand Banking Group Ltd. — Investor Presentation 2011

Mar 17, 2011

The Next Stage of ANZ’s Transformation

Realising the full potential of Super Regional

Mike Smith Chief Executive Officer 18 March 2011

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Agenda

1. Super Regional - driving superior long-term growth and differentiated returns

• Geographic coverage, more rapid economic growth, intra-regional opportunities

• New game with new rules

2. Consistent coherent strategy – connectivity driving competitive advantage

• Delivering on our promises

• Super Regional capability and momentum

3. Future aspirations - the next steps in ANZ’s transformation journey

• Connectivity - realising the full potential of Super Regional

• Growth levers - organic, partnerships and M&A

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1

Super Regional - driving long term growth and differentiated returns

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Denotes two way merchandise trade flow [3 ]
Forecast GDP growth [1 ] (% p.a, 2011-14) FDI inward flow [2] (USDb, 2009)
(2009)
KR
EU 2
4.0% US
1.6% JP
12 2.7%
UK 1.6%
2.3%
TW Asia-US
3
CN 78 5.1% Trade: US$0.8trn
8.7%
HK
48
Asia-Europe IN 5.0%
Trade: US$1.0trn 35
8.5%
VN
8
7.1%
TH
5 Pacific-Asia [4]
4.5%
Trade: US$6bn
PHI
2
4.6%
Intra-Asia MLY
1
Trade:$1.6trn 5.0%
PNG
0.4
5.0%
SG IND
17 5
4.6% 5.9% AUS
23
3.2% Aus/NZ-Pacific [5]
Trade: US$6bn
Aus/NZ-Asia
Trade: US$235bn
NZ
0.2
2.9%
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Source: 1. Global Insight; 2. Bloomberg; 3. WTO; 4. IMF; 5. ABS and Statistics NZ.

2

New game with new rules

• High growth world

Pre Global Financial Crisis

• Unsustainably high credit growth

• De-regulation

• Plentiful inexpensive capital and funding

• Centre of economic gravity with developed economies

• Multi-speed world: Differentiated growth

• Economic power shift to developing economies

• Re-regulation

• Capital and funding scarcer, more expensive

• Deleveraging playing out, lower credit growth

Post Global Financial Crisis

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3

Coherent strategy – driving competitive advantage

Geographic opportunity

• Footprint - exposure to Asia‟s more rapid growth

• Growing financial services requirements

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Building Super Regional
capabilities
• Bench strength/international talent
Leading • Innovative product capability
Super • „Throw and catch‟ capability and
Regional
culture
Bank
• Enabling technology and
operations hubs
• Global core brand, regional reach
• Governance and risk management
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• Regional connectivity

• Strong domestic markets

• and businesses

• Bench strength/international talent

• Global core brand, regional reach

• Governance and risk management

Cross-border customer focus

• Regional customer insights

• Resources, agribusiness, infrastructure

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• Trade and investment flows

• Migration/people flows, education

4

Delivering Super Regional performance momentum

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OUTPERFORM AND TRANSFORM

OUTPERFORM

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RESTORE

• Institutional growth

• Stronger risk and governance processes

• Increased international banking experience

• Balance sheet and capital management

• Move from a presence to a real business in Asia

• 14% of Group Earnings

• Beachhead in Greater China, SE Asia, India, Mekong

• Maintain strong domestic franchises

• Increased management bench strength

• Create hub foundation

• Improving balance sheet composition

• Improved funding diversity

Realise full potential of Super Regional aspiration

Capturing value:

• To Asia

• OUTPERFORM

• Within Asia

• From Asia

2009-2010

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2007-2009

2011-2017

5

Realising the full potential of Super Regional

2017 APEA sourced revenue to drive

Aspiration 25% - 30% of Group profit

• Expanded view of • The more mature our business, the greater our opportunities •

• opportunity in Increasing our footprint, customers and access to trade, liquidity APEA and investment flows

• Domestic • Regional connectivity will deliver additional revenue into

• outperformance Australia, New Zealand, Asia and the Pacific

• Centres of • Hubs provide a lower and more flexible cost base – access Excellence deeper pools of talent, provide better service with lower risk

• Focussed • Technology roadmap focused on customer facing (e.g. internet

• technology banking, goMoney) and cross-border systems (e.g. FX, Cash

• investments Management)

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6

Realising the full potential of Super Regional

2017 APEA sourced revenue to drive

Aspiration 25% - 30% of Group profit

• Continue to build depth in international management and banking experience

People

• Well defined succession planning

• Remuneration and incentives aligned to delivery of strategy and management of risk

• Risk management as a core competency

  • Increased expertise across the risk function

• Risk – Comprehensive set of asset writing strategies –

• Management Product and segment expertise – focus on sectors we know

• Customer driven rather than product focused

• Lower balance sheet intensity

• Greater balance sheet diversity

• Financial • Reduced reliance on interest income

• Management • Funding flexibility

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7

Growth levers - organic, partnerships and M&A

Continued Focus on Organic Growth

Leveraging Super Regional connectivity Increasing productivity Focus on core customers

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Managing the value of ANZ‟s Partnerships

Selective M&A opportunities

• Delivering access to attractive markets/ segments

• Linking partnership customers to ANZ‟s international network

• Actively managing the portfolio to optimise strategic positioning

• Dislocation in global markets continuing to create opportunities

• Consistent M&A disciplines – on strategy, delivers value, executable

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8

Super Regional - long term growth, differentiated returns

OUTPERFORM AND TRANSFORM

Consistent, coherent strategy driving competitive advantage

Realise full potential of Super Regional aspiration Capturing value: • To Asia OUTPERFORM • Within Asia • From Asia

Super Regional capability and momentum Delivering on our promises

Aspiration APEA sourced revenue to drive 25% - 30% of Group profit

Growth levers Organic, Partnerships, M&A

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2011-2017

9

The material in this presentation is general background information about the Bank‟s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate

This presentation may contain forward-looking statements including statements regarding our intent, belief or current expectations with respect to ANZ‟s business and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices. When used in this presentation, the words

“estimate”, “project”, “intend”, “anticipate”, “believe”, “expect”, “should” and similar expressions, as they relate to ANZ and its management, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such statements constitute “forward-looking statements” for the purposes of the United States Private Securities Litigation Reform Act of 1995. ANZ does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

For further information visit

www.anz.com

or contact

Jill Craig Group General Manager Investor Relations

ph: (613) 8654.7749 e-mail: jill.craig@anz.com

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