Australia and New Zealand Banking Group Ltd. — Investor Presentation 2012

Jun 7, 2012

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Ivy Au Yeung Managing Director Commercial Banking Asia Pacific

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Our goal is to be a core bank to our target clients by providing seamless connectivity

Where we play

How we will succeed

Corporate & Turnover >USD100m to Institutional >USD150m dependent Asia Pacific on market* Emerging Our Current Corporate Focus & Turnover Commercial Business Banking >USD15m Asia Pacific Developing Small Business & model Liability only SME

The right risk and service framework

• Implement a risk framework appropriate to Commercial Banking

• Operate a low cost to serve model

Target cross border clients

• Clients with cross border requirements

• Clients with supply chain linkages to multinationals

Operating across 8 Asian and 12 Pacific markets

Existing Markets

• Greater China (Mainland China, HK, Taiwan)

• Singapore

Leverage existing network and expertise

• Further develop competitive advantage through regional connectivity capabilities

• Leverage Institutional and Retail capabilities

• Indonesia

• Greater Mekong (Vietnam, Cambodia, Laos)

• The Pacific

• India

Next Phase of Development

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• China up to USD500m

1

Global and Regional Banks have successfully built commercial businesses across Asia

Our competitors have built commercial businesses over time

• Key competitors generating combined Commercial Asia revenue of >USD8.72b pa[1]

• Achieving returns on equity >20%[1]

ANZ Commercial Asia in early stages of development

• Focusing on client acquisition, developing relationship manager capabilities and building target service model

• Cost to income ratios of 30-40%[1]

Our Key Competitors

Global Banks Regional Banks

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Bank East Asia

• Our aim by 2017 is to achieve a core bank relationship with at least 40% of ANZ Corporate and Business Banking clients

• Growth in Commercial: revenue up 59% PCP, 35% HOH; more clients with number of products per customer up from 1.69 to 2.03

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1. Based on bank reported disclosures and ANZ analysis.

2

Regional/global banks have a different focus to local banks in the large and growing commercial market

Asia commercial banking revenue pool is estimated at USD147b in 2011 with projected growth of 8% p.a. by 2013

ANZ and other regional/global banks focus on deposits, markets and trade, whereas local banks focus on lending

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Asia Commercial Banking Revenue Pool
Risk-adjusted Revenue [1 ] (USDb)
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Revenue Mix

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11% Lending
Local State Owned
+8%
and Private Banks
Cash
CAGR 170
+5% 158 27%
(ICBC, BOC, SBI, 56%
147
137 ICICI, OCBC,
133
Chinatrust)
Trade
32% 89% of
Global Banks Revenue
& Emerging
Regional Banks 34%
Markets
(HSBC, Citi, SCB, 30%
DBS, ANZ) 3%
7%
Commercial ANZ
Asia Revenue Commercial
2009 2010 2011 2012F 2013F
Pool Asia Pacific
Projected
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1. Source: McKinsey Revenue Pool database, ANZ analysis. Risk adjusted revenue is total revenue less expected provisioning for credit risk. Asia represents China, Japan, Korea, Hong Kong, India, Indonesia, Singapore, Malaysia, Taiwan and The Philippines

3

Commercial Asia leverages existing Institutional and Retail platforms and products to serve target clients

Commercial Asia Pacific strengthens regional proposition

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Institutional
Foster and refer new Leverage product expertise
Institutional Clients in markets, trade and cash
management
Commercial
Lower cost
Refer
processes
owners /
Branch executives
Network
Retail Private Bank
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Adds scale to existing infrastructure

• Leverage existing infrastructure with minimal additional investment in product and support infrastructure required

A more efficient service proposition

• A lower cost model for developing future Institutional clients

Strengthens funding base

• Commercial deposits further diversify funding base

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4

Commercial Banking provides an opportunity to establish a relationship across a client’s business lifecycle

Typical stages of development for Commercial clients

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Commercial Institutional
Small Business & Corporate &
Liability Only SME Business Banking
100
Private
Limited
Companies
80 Publicly Large Local
Listed or Global
companies Corporate
60
Partnership &
Small Business Family owned
“Moms & Pops”
40
Small Business
20 “Moms & Pops”
0
% of clients
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• Generate continuous pipeline to Institutional Banking - Identify future champions and high growth companies at an early stage

• Our clients and people will grow together and build business opportunities & talents

• Supporting Small Business and Liability only SME a key pillar of the community which account for 60-70% of employment

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0-5 5-25 25-75 75-150 >150
Sales Turnover (USDm)
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5

Our value proposition is based on international connectivity, deep relationships and sector insights

Three key elements of our value proposition

• Leveraging our super regional connectivity to drive

• International cross-border business success – both within Asia and Connectivity between Asia and Australia / New Zealand and Pacific

• Deep Relationships • Developing deep client relationships through a & Trust thorough understanding of their business

• Utilising deep knowledge of the country, expertise

• Insight and insights in target industry segments

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6

We will control risk and achieve low cost-to-serve through a phased approach to building the business

	Phase I 2011-2012	Phase II 2012-2013	Phase III 2014-2017
Country focus	• Hong Kong, Singapore, Taiwan • China, Indonesia • Developing Pacific model • India, Greater Mekong
Segment focus	• Focus on Corporate & Business Banking • SME – Developing Model • Continued focus on Corporate & Business banking • Pilot SME in HK and SG • Continued focus on Corporate & Business Banking • Rollout SME Banking to selected countries
Manage risk effectively across the portfolio	• Upgrade capabilities in Commercial team • Develop Early Alert (EAR) framework • Approved BWS and CLG • Upgrade bench strength of risk team / product partner • Embed EAR forward looking framework across all countries • Embed and enhance operating risk framework • Rigorously enforce the EAR framework • Hub appropriate risk monitoring activities and reports
Embed a low cost to serve model	• Leverage existing products and platforms • Agree and adopt a light touch product/RM model • Improve operational processes in Trade, Markets and Cash • Standardise documents and processes • Leverage investment in other segments as well as hubbing to further reduce cost to serve

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7

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Appendix

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Commercial Banking Asia Pacific 1H12

Commercial segment revenues up 59% PCP as customer franchise strengthens

Country build out

• Focused build-out in Hong Kong, Singapore, Taiwan and Indonesia

• Hired experienced Commercial Relationship Managers and right support staff to increase bench strength

• Re-organised regional and country teams to align to target segments

Commercial Client revenue growing[1]

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Market Sales Other Client Revenue
USDm
65
+43% CAGR
48 20
41
32 34 11
10
5 5
45
37
27 29 31
1H10 2H10 1H11 2H11 1H12
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Growing client base and deepening relationships

Client numbers continue to grow

• Commercial clients grew 35% PCP

Commercial Asia Client Numbers[2]

Increase cross-sell, particularly of trade and markets products

• Number of products per customer increased from 1.69 to 2.03 in 1H12 across the portfolio

• Trade cross-sell to markets clients increased 14% in 1H12

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12,290 12,851
9,287 9,485
Sep 10 Mar 11 Sep 11 Mar 12
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1. Pro Forma basis adjusted for RBS acquisition

2. Includes retail transfer in Vietnam Aug 11

9

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Michael Rowland Chief Executive Officer ANZ Pacific

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Pacific financial performance has shown solid growth

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409
Revenue 321 296 347
USDm 184 225 239
FY08 FY09 FY10 FY11 1H11 2H11 1H12
Net Profit after Tax
119 107 135 160
USDm 68 92 102
FY08 FY09 FY10 FY11 1H11 2H11 1H12
4.0 4.2
3.1
Deposits 2.9 3.0
USDb
Sep 08 Sep 09 Sep 10 Sep 11 Mar 12
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1

ANZ is the major commercial bank in the Pacific

A presence in 12 markets across the Pacific for over 130 years

Holds the largest share of banking wallet in the Pacific

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• 2,200 staff in 12 countries & 55 branches

• 17,500 commercial/corporate customers

• 420,000 retail customers

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Share of Revenue [1]
ANZ
Westpac
BSP
Others
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Share of Net Profit After Tax [1]
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ANZ
Westpac
BSP
Others
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1. ANZ estimates of underlying earnings based on published financial information as at 31 March 2012

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2

With significant success in winning client transactions across flow and value-added businesses

Value Added Transactions

Substantial Flow Transactions

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LC1 LC2 Structured TradeFacility Revolving Investment Export Trade Finance Working Capital FacilityIndemnity Guarantee
Power Plant Project Power Plant Project Oil Imports Credit Line Facility Facility
2011 2012 2012 2012 2011 2012
Transactional Banking Requirements Term Debt Financing Sovereign Bond 3y Term Loan Trade FinanceFacility Export Finance
2012 2012 2011 2011 2011 2012
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Fiji Sugar Corp
Structured Trade Mandated Lead
Facility Syndicated Loan Arranger
2012 2011 2011
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3

We have positioned our Pacific business around Super Re ional strate g gy

2008

2011/2012

Where we have come from

Current Focus

• Standalone domestic/local bank • Super Regional connectivity driven across countries and segments

• • Grown through acquisition • Main bank for Global Diversified Corporations, NRG, FI and Infrastructure

• Organic growth

• • Retail Transformation and productivity push

• • High cost to serve in Retail and Commercial • Relationship strength in Corporate driving customer acquisition

• • Electronic service channels

• • Limited investment • Electronic sales and service for all segments • Technology infrastructure build for sustainable platform

• • Little connection across ANZ network • Positioning Super Regional connectivity for C&IB and Commercial as a differentiator

• • Signature Priority/Priority Banking rollout

• • Unable to attract or grow talent into management • Champion local management talent • Increase Pacific Nationals in leadership roles

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4

Regional connectivity is playing to our unique position in the Pacific

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Pacific trade flow by origin/destination
Intra-Pacific
Asia
Rest
of the
World
Pacific-Asia
Trade: US$4.4b
Australia
New Zealand
PNG US$4b SI US$300m Trade flows between Asia and the Pacific have
grown 25% p.a. for each of the past 5 years
TL US$342m
Fiji US$2b
VanuatuUS$368m
Aus-NZ-Pacific
Denotes two way merchandise Trade: US$3.8b
trade flow (2010)
Denotes inward FI flow (2010)
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5

Source: ANZ Economics; UNCTAD; UNCOMTRADE

Institutional accounts for almost two-thirds of Pacific’s revenues

% of revenues by region and segment

ANZ Institutional (excl. Commercial) accounts for ~60% of Pacific revenues

PNG and Fiji represents more than twothirds of Pacific revenues

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North West Region Central Region South East Region American Territories
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ANZ Pacific total revenue split by segment (FY11)

Total 2011 ANZ Pacific Revenues: US$409m

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Retail & Wealth Institutional
Commercial
Markets
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Retail Institutional Corporate & Commercial Markets

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6

We have a focused strategy to respond to a number of opportunities and challenges

Critical opportunities / challenges

Strategic responses

• 1 • Resource dependent economies in the region are experiencing a

• Resource boom boom • Opportunities in PNG are significant

• 2

• Opportunities to deepen under-

• Network penetrated fund flows (FIG, Global

• flows with Diversified Corporations, PNG Infrastructure), leveraging ANZ’s Institutional strength

3

• Modernise • Strong growth opportunities in

• Commercial Commercial segment

• sales and service • Non funded revenue growth opportunity

• model

• 4 Optimise • Retail has well established brand, Retail customer and revenue base but

• proposition high cost to serve

1 Prioritise PNG 2 Crosssegment & cross-border connectivity 3 Establish a Commercial segment 4

Retail transformation

• Prioritise North West region (PNG, Solomon Islands and Timor Leste)

• • Defend ANZ’s leading market position through a strong PNG business

• Target fund flows by engaging client segment specialists (FIG, GRM) and global industry specialists (Natural Resources, Infrastructure)

• Develop a compelling Commercial banking model drawing on Pacific’s strong Commercial banking foundations

• Segment customer proposition and migrate mass customers to self-service and direct channels

• Realign branch design to focus on sales

• Optimise branch footprint

7

PNG presents the single largest opportunity

Total Trade (Imports and Exports)[1]

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N. Caledonia
Fiji
Am Samoa
Others
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Size & Growth Prospects: PNG is the largest opportunity

• Growth focussed on resource-rich economies, with PNG representing the 29%

• largest share

• PNG nominal GDP 2011: US$13.7b and 2012E: US$16b

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Affluent population in the Pacific
(2010) [2]
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Connectivity: PNG is the key to the Pacific’s main trade and FDI corridors

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Fiji
Guam
Timor-Leste
Others
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• ANZ’s Super Regional footprint complements Asia’s and Australia’s position as the Pacific’s main trade partners

• Capturing the trade and FDI corridors between PNG and Asia/Australia is key

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1. Source: Global Insight, Bloomberg, WTO, UNCTAD, CIA Factbook, IMF, ABS and Statistics NZ, ANZ Pacific Quarterly May 2012 2. Sources: Asia Retail income segmentation, Asia and Pacific Customer Insights reports and McKinsey Global Banking Pool and ANZ analysis

8

We are deepening Institutional relationships for com lete covera e of Pacific’s resource-rich economies p g

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1 to 3 Construction phase
4 to 7 Production phase
Institutional coverage ANZ strength
2 Area of focus
3
“Pillar” Large Corporates 5 Financial 1 Global Diversified
4 (Local corporates & Institutions Group
segments 5 onshore Diversifieds) 6 (FIG) 4 Corporations
7
Sub- • All corporates, apart High-value existing ANZ GDCs with investments in
from high-risk FIG customers, including the Pacific, especially
segments industries, in local • Government • GDCs in Natural Use Pacific’s
markets agencies, provident Resources,
onshore
• Local corporates funds and Infrastructure, Agri
• Onshore Diversified infrastructure and Tourism strength as a
Corporations accounts • GDCs headquartered
• State owned • Global banks of GDCs in APEA or Aust/NZ springboard to
enterprises
ANZ’s network
by leveraging
• Large and diverse • Local specialisation • Global capability and relationships
How we
customer base • Product training tailored connectivity to follow the
will win
• Deep knowledge of the to FIG customers
market • Offer world-class “chain” back
• Dedicated industry products in key flow
to offshore
capability in Natural areas - cash
Resources, Agri & management, trade and parent
Infrastructure FX
• Deep customer
relationships
• Global capability and
connectivity
9
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Strong opportunities for growth in Commercial

We are modernising our Commercial Banking sales and service model, leveraging work already underway in Asia

• Leverage Super Regional connectivity to drive cross-border business

• High-touch, responsive Relationship Managers provide customised solutions

• Build from a solid franchise • Extensive branch and ATM network to serve transaction banking needs

• Primary bank for both business and personal needs providing seamless services

• Strong client relationships through deep country, industry and market knowledge

• Client acquisition & enhanced • RMs drive sales/prospecting and cross-sell to existing deposit client base cross- sell • Leverage Supply Chain

• Downstream opportunities from C&IB

• Comprehensive product suite with customised solutions

• Specialised Lending

• A focus on target - Term lending and Working Capital

• products - Transaction banking and Cash Management

• • FX and Trade

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10

We are optimising and modernising Retail

		How we get
	Today	there	End state
			Differentiation:
Client Segmentation Channels	One CVP across all segments High use of branch channels	+ A. Customer Segmentation	Signature Priority (Affluent); Priority (Emerging); and ANZ Blue (Mass) Branch = sales Electronic = service
Sales and Services	Service-focused culture	B. Migrate mass customers to electronic channels	Sales-focused culture with modern techniques and MIS
Economics	High cost to serve Low sales growth	+ C. Sales productivity	Higher revenue growth Lower variable costs
Customer	Long wait-times across	uplift	Tiered service level
Experience	all segments		Transact everywhere

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11

We have clear roadmap to deliver growth

2012

2017

Current Focus

Future State

• Super Regional strategy driven across countries and segments

• Main bank for Global Diversified Corporations, NRG,

• FI and Infrastructure

• Integrated franchise across geographies, segments and products

• Delivering unique connectivity for customers across ANZ network

• Organic growth

• Retail Transformation and productivity push

• Relationship strength in Corporate driving customer acquisition

• Electronic service channels

• Retail service through electronic channels; acquisition focus on affluent

• Commercial the driver of non funded revenue growth electronically through trade, cash and Fx (Transactive and Wall Street in Pacific)

• Electronic sales and service for all segments

• Technology infrastructure build for sustainable platform

• Retail growth through electronic channels and acquisition of affluent

• Best in class Corporate/Commercial products and platforms

• Positioning Super Regional connectivity for C&IB and Commercial as a differentiator

• Signature Priority/Priority Banking rollout

• Main bank for Global Diversified Corporations, NRG, Infrastructure and FIG

• Dominating local Corporates and Commercial

• Affluent bank of choice

• Champion local management talent

• Local leadership the norm

• Increase Pacific Nationals in leadership roles

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12

To sum up – we are modernising and reshaping the Pacific business for growth

Number one market share in Institutional, Commercial and affluent segments

Deliver Super Regional capability

Focus on highest growth geography – North West

Manage customers regionally with industry focus and product specialisation

Be banker of choice to Global Diversified Corporations, NRG, Infrastructure, Agri and FIG (particularly Governments and Central Banks)

Modernise Retail and Commercial businesses - service to electronic channels and drive sales productivity

Strong in-country management

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13

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Joseph Abraham President Director

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ANZ Indonesia Financial Performance

Revenue (USDm)

Loans (USDb)

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294
CAGR
+43%
202
166
135
82
70
2007 2008 2009 2010 2011 1H12
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2.2
CAGR
+57% 1.8
1.5
0.8
0.5
0.3
2007 2008 2009 2010 2011 1H12
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NPAT (USDm)

Deposits (USDb)

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CAGR 35
+24% 31
24
15 14
5
2007 2008 2009 2010 2011 1H12
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2.4
CAGR 2.3
+57%
1.6
1.1
0.6
0.4
2007 2008 2009 2010 2011 1H12
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1

ANZ has built a strong base of branches, customers and operations to support continued growth

2008 2009 2010

2011 2012

Develop strategy and buildout retail and Institutional businesses

Continue organic growth with bolt-ons and product capability

Extend and deepen franchise

• Limited commercial and institutional banking product

• Strong and growing brand presence

• Full commercial and Institutional banking proposition

• Predominantly a monoline credit card business with no significant retail banking proposition

• Full commercial capability

• Leading natural resources and diversified industrial bank

• Enhance retail and wealth product set

• Leading retail bank with affluent positioning

• 2,700 retail customers, 450k cards

• 28 branches in 11 cities

• 27,000 retail customers, 830k cards

• No brand visibility

• Rolled out world class data centre and call centre technology

• Limited system capabilities

• 2 branches in 2 cities

• 53 ATMs connected to both national networks, Prima and ATM Bersama of 40,000 ATMs

• 2 standalone ATM with no connection to national networks

• ANZ BGL increase ownership in ANZ Indonesia from 85% to 99%. PT ANZ Panin Bank name changed to PT Bank ANZ Indonesia

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ANZ Head Office in 2008

ANZ Head Office in 2012

2

ANZ brand engagement is amongst the highest among international banks

Overall brand engagement score comparison[1]

Spontaneous awareness of ANZ by country

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38%
2010
32%
2011
20%
16%
12%
7%
5% 4%
1% 1%
Singapore Hong Kong Taiwan Indonesia Vietnam
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2010 2011 97 99 101 107 109
88 93 90
78
(2)
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• In 2010, we were surveyed as „ANZ Panin‟

• Brand engagement is better than SCB and ANZ is closing the gap with HSBC and Citibank

• In 2011, „Panin‟ was not included in the questionnaire Jakarta Airport

ANZ Indonesia brand engagement 2010-11[1]

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9399 8997 8898 8796 8793 8898 9192 91106 109
83
2010
2011
Sensing Knowledge Understanding Integrity Connection Commitment Conviction Participation Advocacy
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ANZ has improved notably with significant changes in „Understanding‟, „Connection‟ (relevant) and „Commitment‟ (purchase intention). These are key to drive sales results.

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• 2) Engagement scores are relative rather than absolute. The survey comprised 200 respondents of affluent segment.

Notes:

3

1) DBS was not included in the 2010 survey

We are winning greater substantial flow and value added deals

Value-added

USD 75M with ANZ having approvals for an increase of total leasing facility limits of USD 37.5M

PT Petrosea Tbk.

USD 50M – 5yrs finance lease facility

Leighton Holdings (PT Thiess Contractors Indonesia)

Substantial Flow

Term Loan – USD 21.5M senior tranche (“Tranche A”) of a total USD 36.5M senior debt facility

PT Optima Sinergi Convestama

• Revolving credit facility (ANZ portion – USD 30M)

PT Harum Energy Tbk.

1. IDR 50B – 3 yrs revolving loan

2. IDR 50B – 1yr MOTF

PT Petrojaya Boral Plasterboard

• USD 50M – revolving loan and USD 10M – bank guarantee

PT Indo-Rama Synthetics Tbk.

USD 20M – 5 yrs syndicated loan

PT Charoen Pokphand Indonesia Tbk.

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4

Indonesia represents a compelling market in which to grow our financial services offering, however there are re ulator and com etitive headwinds g y p

Sound Macro Fundamentals

		Latest data
	Population GDP	242 million USD 846 billion
	Debt to GDP % Fiscal Deficit	26.5% byend of 2011(150% in 1998) 1.2% of GDP in 2011(2.2% in 2012)
	Credit Rating	Investment Grade
	Median Age	28.2yrs
	Inflation	4.5%(as end of Apr 2012)
	Fx Reserves	USD 105 billion(as end of Mar 2012)
	Domestic
	consumption as	60%
	% of GDP

Strong and still improving banking sector

Indonesia banking industry statistics	2007	2011
Return on assets	2.8%	3.03%
Return on equity	18%	19%
Loan/Deposit Ratio	66.3%	78.8%
Capital adequacy ratio	19.3%	16.05%
Cost to income	53.4%	44.0%

Regulatory

Competition

• Product and category limitations by Central Bank

• Ring fencing around subsidiary of international

  • Indonesian banks are attractive – growing much faster than foreign banks

• group

• Regulatory uncertainty as to foreign ownership levels

• Major investment by regional ASEAN and international banking groups, e.g. Singapore,

• Malaysia, Middle East and Australia

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5

6

Source: Business Monitor, Euromonitor, Bank Indonesia

State-owned banks dominate the sector with about 52% of total loans

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NPAT (AUDm)
1,630
1,324
1,144
625
361 343
202 176 121 118 87 66 36
Total Loans (AUDb)
34.0
31.0
21.9
17.6
13.4
12.0
8.2 8.1
6.8
3.3 2.9 2.8 1.9
Large domestic banks Foreign controlled banks [1] Foreign banks
BRI Bank Mandiri BCA BNI Bank Danamon CIMB Niaga Citi Panin Bank HSBC Bank Permata SCB BII ANZ
Bank Mandiri BRI BCA BNI CIMB Niaga Bank Danamon Bank Permata Panin Bank BII HSBC Citi SCB ANZ
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ROE (%)

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42.5
33.5
22.0
20.1 19.1 19.1 18.9
16.7 16.3 15.9 14.6 14.6
8.7
Total Deposits (AUDb)
45.1
41.0
34.5
24.7
14.1
9.2 9.1 8.8 7.6
4.3 4.2 2.7 2.5
Source: Bloomberg, Bank Indonesia
BRI BCA BNI Citi SCB ANZ HSBC Bank BII
Bank Mandiri CIMB Niaga Bank Permata Panin Bank Danamon
Bank Mandiri BRI BCA BNI CIMB Niaga Bank Danamon Bank Permata Panin Bank BII HSBC Citi SCB ANZ
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Note: 1. Foreign controlled banks include significant stakes in local banks by foreign players (Bank Danamon - DBS, Bank Permata – Standard Chartered) Source: Bank Indonesia – audited financial report for the years ended 31 Dec 2011

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6
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We have built competitive client position and scale relative to international banks

ANZ is now competing with international banks on equal footing

ANZ has overtaken SCB in consumer banking with significant upside for Institutional growth

	Revenue		Loans	Deposits			Retail revenue	Institutional revenue
	**(USDm) **	Branches	(USDb)	(USDb)			(USDm)	(USDm)
ANZ (2008)	82	2	0.5	0.6		ANZ (2008)	65	17
ANZ (2011)	294	28	1.8	2.4		ANZ (2011)	203	91
Commonwealth Bank	105	93	1.1	1.3		Commonwealth Bank	84	21
SCB	455	24	2.8	2.7		SCB	152	303
HSBC	515	43	3.3	4.4		HSBC	258	257
Citibank	616	22	2.9	4.3		Citibank	303	313

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7

8

Source: Bank Indonesia, ANZ management reports

ANZ Institutional - strong in Natural Resources and building FI, Agriculture, Diversified and Commercial segments

Strategic pillars we are focussing on

• Deepen relationships with key clients via active cross sell of products and cross-border connectivity

• Expand ability to serve natural resources and commence growth in agriculture and FI

• Target wallet penetration for local corporates

• Expand our strategic capability in Global Markets

• Become Bank of Choice for Trade, focus on export flows

• Focus on cash and build significant low cost CASA

• Build people capability to support growth

Aligning ANZ core competencies with Indonesia macro trends

• Natural Resources – by providing product expertise and industry insights to become the #1 natural resources foreign bank and dominate the coal space

• Infrastructure – to leverage drive in renewable/energy, ports, rail, selected airport space to become the Top 3 infrastructure foreign bank

• Agriculture – to support Indonesia agriculture sector in selected space to become the Top 3 Agriculture foreign bank

• Commercial – strong network in key regional centres positioned us well to capture commercial client based

Product revenue mix & growth

Segment revenue mix & growth

Revenue (USDm)

Revenue (USDm)

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100 91
80
60
40
17
20
0
2008 2011
Lending Trade
Cash Management Markets
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100
91
80
60
40
17
20
0
2008 2011
Natural Resources Diversified
Agriculture
Financial Institutions
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8

9

Note: 1. Based on „active‟ customers

We are focussed on reshaping the retail business mix to capture affluent and emerging affluent customer growth

Strategic pillars we are focussing on

• Build up Signature Priority Banking clients base

• Build transaction balance and low cost FCY & IDR deposits

• Build wealth revenue through up-sell and cross-sell

• Build up quality mortgage portfolio with affluent crosssell

• Diligently build in-segment personal loan balance sheet

• Enhance cards balance sheet

Product revenue growth (USDm)

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203
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65
2008 2011
Banking Mortgage Personal Loans
Wealth Cards
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Top 2 segments represents 73% of system

	deposits Mass Affluent Emerging Affluent HNW Target segment Segment revenue mix	deposits Mass Affluent Emerging Affluent HNW Target segment Segment revenue mix	2-3% 97% % of population (2011) & growth
	Segment	# of customers	Average balance per customer (USDk)
	Personal loans	56k	2
	Affluent customers	8k	105
	Emerging Affluent customers	22k	14
	Segment	# of cards	Average balance per card
	Credit cards	800k	0.5

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Notes: Based on exchange rate AUD/IDR = 9192.6315

ANZ has the potential to be the #1 International Bank in Indonesia

2012 2013 2014 2015 2016 2017+

Activate the Continue product & Extend and deepen Originate to platform build franchise Distribute model

• Build mortgage and wealth • Continue to build cross business border connectivity

• •

• Complete platform and Expand capability at outside system build Java branches

• • Build and bench strength • Continue to build markets people capabilities

• Deepen organic growth

• Become the leading international bank

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11

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Appendix

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Appendix 1 - Indonesia’s economy offers a large wallet with good diversification across industry segments

Sound Macro Fundamentals Fifth largest economy in Asia Latest data Population 242 million GDP USD 846 billion Debt to GDP % 26.5% byend of 2011(150% in 1998) Fiscal Deficit 1.2% of GDP in 2011(2.2% in 2012) Credit Rating Investment Grade Country 2011 GDP(USDb) 5 y 1 China 7,088.5 2 Japan 5,874.6 3 India 1,865.7 Australia 1,507.4 4 South Korea 1,143.9	Sound Macro Fundamentals Fifth largest economy in Asia Latest data Population 242 million GDP USD 846 billion Debt to GDP % 26.5% byend of 2011(150% in 1998) Fiscal Deficit 1.2% of GDP in 2011(2.2% in 2012) Credit Rating Investment Grade Country 2011 GDP(USDb) 5 y 1 China 7,088.5 2 Japan 5,874.6 3 India 1,865.7 Australia 1,507.4 4 South Korea 1,143.9	Sound Macro Fundamentals Fifth largest economy in Asia Latest data Population 242 million GDP USD 846 billion Debt to GDP % 26.5% byend of 2011(150% in 1998) Fiscal Deficit 1.2% of GDP in 2011(2.2% in 2012) Credit Rating Investment Grade Country 2011 GDP(USDb) 5 y 1 China 7,088.5 2 Japan 5,874.6 3 India 1,865.7 Australia 1,507.4 4 South Korea 1,143.9	Sound Macro Fundamentals Fifth largest economy in Asia Latest data Population 242 million GDP USD 846 billion Debt to GDP % 26.5% byend of 2011(150% in 1998) Fiscal Deficit 1.2% of GDP in 2011(2.2% in 2012) Credit Rating Investment Grade Country 2011 GDP(USDb) 5 y 1 China 7,088.5 2 Japan 5,874.6 3 India 1,865.7 Australia 1,507.4 4 South Korea 1,143.9	Sound Macro Fundamentals Fifth largest economy in Asia Latest data Population 242 million GDP USD 846 billion Debt to GDP % 26.5% byend of 2011(150% in 1998) Fiscal Deficit 1.2% of GDP in 2011(2.2% in 2012) Credit Rating Investment Grade Country 2011 GDP(USDb) 5 y 1 China 7,088.5 2 Japan 5,874.6 3 India 1,865.7 Australia 1,507.4 4 South Korea 1,143.9
		Country 2011 GDP(USDb) 5 y	ear CAGR
		1 China 7,088.5	10.5%
		2 Japan 5,874.6	0.0%
		3 India 1,865.7	8.1%
		Australia 1,507.4	2.6%
		4 South Korea 1,143.9	3.5%
Median Age 28.2yrs		5 Indonesia 846.3	6.5%
Inflation 4.5%(as end of Apr 2012) Fx Reserves USD 105 billion(as end of Mar 2012) Domestic consumption as % of GDP 60% 6 Taiwan 467.9 7 Thailand 345.7 8 Malaysia 270.0 9 Singapore 258.5 10 Hong Kong 247.3		6 Taiwan 467.9	3.8%
		7 Thailand 345.7	2.6%
		8 Malaysia 270.0	4.3%
		9 Singapore 258.5	5.7%
		10 Hong Kong 247.3	3.6%

	Country	2011 GDP(USDb)	5 year CAGR
1	China	7,088.5	10.5%
2	Japan	5,874.6	0.0%
3	India	1,865.7	8.1%
	Australia	1,507.4	2.6%
4 5 6 7 8 9 10	South Korea Indonesia Taiwan Thailand Malaysia Singapore Hong Kong	1,143.9 846.3 467.9 345.7 270.0 258.5 247.3	3.5% 6.5% 3.8% 2.6% 4.3% 5.7% 3.6%

Major industries align with ANZ sector strengths Strong and still improving banking sector

Industry contribution to GDP(%)	Indonesia	China	India		Indonesia banking industry statistics	2007	2011
					Return on assets	2.8%	3.03%
Agriculture	14.9	10.1	18.1
					Return on equity	18%	19%
Industry
(energy, manufacturing &	46.0	46.8	26.3		Loan/Deposit Ratio	66.3%	78.8%
mining)
Services					Capital adequacy ratio	19.3%	16.05%
(includes construction,	39.1	43.1	55.6
tourism)					Cost to income	53.4%	44.0%

Source: Business Monitor, Bank Indonesia, World Bank, IMF, CIA – The World Factbook, BPS

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12

Appendix 2

Panin Bank Timeline (currently 38.82% shareholding)

Year 1999	Key –ANZ	events BGL acquired 11% of Panin Bank
2003- 2008	–ANZ Bank	BGL gradually increased ownership in Panin to 29.9%

2009 –ANZ BGL increased ownership in Panin Bank to 38.5% 2010 –ANZ BGL increased ownership in Panin Bank to 38.82%

ANZ Head Office in 2008, located in Panin Bank Head Office

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ANZ Indonesia’s footprint, 28 branches in 11 cities, the largest network outside Australia & NZ

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Medan
2 branches; Balikpapan Manado
4 ATMs 1 branch; 1 ATM 1 branch;
1 ATM
Palembang Makassar
1 branch; 1 ATM 1 branch; 1 ATM
Jakarta
13 branches; Surabaya
32 ATMs 4 branches;
Bandung; 7 ATMs Denpasar
2 branches; 3 ATMs Solo 1 branch; 1 ATM
1 branch; Semarang
1 ATM 1 branch;
2 ATMs
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Head Office and Branch in 2012

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13

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Will Rathvon Global Head Natural Resources International & Institutional Banking

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Natural Resources financial performance

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Asia Pacific Australia / NZ Europe & America
PCP
19%
559 31%
600 503
469 HOH
Revenue 20% 350
400
AUDm 268 291
200
0
2009 2010 2011 1H11 2H11 1H12
17 18
15
10
Deposits
AUDb
Sep 09 Sep 10 Sep 11 Mar 12
13
12
10
9
Lending
AUDb
Sep 09 Sep 10 Sep 11 Mar 12
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1

Progressing towards target revenue mix

Natural Resources Revenue Mix

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Current Mix - FY11 Our Aim
Metals & Mining Oil & Gas Metals & Mining Oil & Gas
69% 31% 55% 45%
Metals &
Metals &
Mining Oil & Gas
Mining
39% 35% 40%
Oil & Gas
31%
12%
5%
Processing
8%
7%
10% Services
Traders Traders 8%
2%
Traders
Services
Services Processing 3%
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2

Our business is driven by value added solutions and flow business and this will dee en further p

Natural Resources Revenue Mix

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FY11 Our Aim
Advisory 22%
25%
26% 28%
35%
35% 37% 34%
Value
Added
40%
48% 46% 52%
Flow 45%
48% 46% 49%
38%
Lending
25% 25% 23%
20%
15% 15% 15%
Total NRG Australia / Asia Pacific Europe & Total NRG Australia / Asia Pacific Europe &
NZ America NZ America
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3

We deliver our Super Regional capabilities to local re ional and lobal clients , g g

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Value added transactions Substantial flow transactions
Newcastle Coal Wiggins Island Coal Export
Infrastructure Group Terminal Pty Ltd (WICET) Leighton Holdings Fortescue Metals Group
AUD1b USD2.9b & AUD1.15b USD600m USD965m
Stage 2F Expansion Gladstone Coal Terminal Syndicated Indonesian Master Lease Facility
Project Finance Advisory & Project Finance Lease Facilities
2011 2011 2011 2012
Australia Pacific LNG Salamander Energy Limited Vitol Group
Sinopec Group
USD8.5bn USD250m USD150m USD5bn
Project Finance Reserves based borrowing Asian Revolving Credit facility Syndicated Loan Facility
base facility
2011 2011 2012 2011
Hoa Phat Group / Maritim Barito Perkasa
Sandfire Resources NL Horizon Oil Limited Hoa Phat Energy (Adaro Group)
AUD390m USD160m VND600bn USD160m
Project Finance Borrowing Base Facility Secured Syndicated Loan Syndicated Loan Facility
& Guarantee Mandated Lead Arranger & Facility
Structuring Bank
2011 2012 2011 2012
Caltex Australia Limited
Peabody Energy PT Bayan Resource Tbk PT Bayan Resource Tbk
AUD150m USD3.1bn USD185m USD700m
Medium Term Note USD Bond Issuance Acquisition Bridge Facility Club Deal
Security Agent/Account Bank
2011 2012 2011 2012
4
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Natural Resources business is building out its presence and ca abilit across the re ion p y g

2008-2010 2011 2012 Largely Australia Building out Extending and focused capability deepening presence

• • •

• Leverage Australia’s Emerging LNG Build out coverage in history opportunity major centres

• Domestic clients/needs

• Build out offshore • Improve product specialisation capabilities

• Balance sheet & flow

• Increase knowledge base

• Increase non-lending revenues

• •

• 70% metals and mining Broaden our O&G profile

• Improve connectivity

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5

Asian demand for core commodities is driving the investment need in the Su er Re ion p g

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Region contains large deposits, requiring AUD430b of Thermal Coal LNG
investment by 2020
Thermal Iron Ore
Copper 20%
Coal 54% 48%
China
India
Iron Ore
Malaysia
& Brunei
Indonesia
PNG
The Asia Pacific region will become
the largest exporter of LNG by 2020,
requiring AUD230b of investment Australia
Copper
150
2012 2020
LNG
100
50
0
Australia Indonesia Malaysia PNG Brunei
6
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Building a core client and global flow proposition around trade flows in the Su er Re ion p g

ANZ Natural Resources business is focussed on the right balance of industry ~~specialisation and regional and local teams~~

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Local Natural Resource Clients

Global Clients

Regional Clients

Specialist NRG relationship teams provide international connectivity

Industry specialists with regional experts provide deeper insights

Local relationships will use industry specialists as needed

• •Flow products focus

• •Value added solutions focus

• •Value added solutions and Flow products focus

• •Value added solutions important

• •Grow Flow products

• •Strategic Balance Sheet Use

• •Strategic Balance Sheet Use

• •Strategic Balance Sheet Use

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Europe & America is home to some of the largest Natural Resources companies

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Oil & Gas Mining & Metals Shell BHP ExxonMobil Rio Tinto BP Vale ChevronTexaco Xstrata Total Anglo American ConocoPhillips Peabody Glencore Barrick Gold

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7

We want to be a core bank to our target clients and a world class resources bank in our Su er Re ion p g

Our value proposition focuses on connecting global, regional and local clients and deepening customer relationships

2012

2017

Maintain and leverage ANZ core strengths into Asia

Insight “from the mines to the minds”

Drive Connectivity Deepen with regional and relationships global customers

• •Selectively build niches •Build out our specialist and leverage our lead teams in our key offices position within Australia with deeper skillsets

• •Link company and asset •Increase our oil and gas knowledge with Regional coverage talent and Global players

• •With core local teams add

• •Continue growing oil and bench strength gas expertise

• •Strengthen strategic positioning with our core clients

• •Building intra-regionally – local insights, industry insights and country insights

• •Focus our skill sets on Focus our skill sets on our chosen global and core clients

• •Capture more •Focus our skill sets on Focus our skill sets on customers across the our chosen global and value chain in multiple core clients sectors (from producers •Global insight coupled

• to processors to with strong local

• traders) knowledge

• •Build on specific niches including smaller international oil companies

• •This end to end business proposition will lead to deeper relationships

• •Leverage expertise to capture more trade, commodities and capital flows

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8

Competition framework

House banks with sector specific coverage

Investment banks with specialist coverage

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• Australia, Singapore, London, Houston

• Medium sized team

• Producer model – selectively adding

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• Extensive Asia, Mid East, London & Europe, Jo’berg and N. Africa, New York, Houston, Calgary, Select Latin America

• Large team – recent downsizing – now hiring selectively

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• Australia (domestic focus)

• Small sized team

• Resources strategy – looking to hire

• Extensive Asia, London, Select Mid East, New York, Houston, Select Africa

• Large team

• Advisory-led with balance sheet

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• Tokyo, Singapore, London

• Large team

• Advisory increasing, balance sheet available

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• Asia, Mid East, Extensive Europe, Select Africa

• Major resource player, energy platform a strength

• Balance sheet constraints

• IB-led with balance sheet

Specialist coverage model

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• Select Asia, Extensive Africa, London, New York

• Medium sized team

• Advisory and structured financeled, limited balance sheet

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• London, Toronto, Vancouver, • Toronto, Vancouver, New York, Houston, Jo’burg, Hong Kong, London, Sydney, Hong Kong, Beijing, Singapore and Australia Beijing, Houston

• Medium sized team

• Small team

• Advisory and structured financeled, limited balance sheet

• Advisory-led, limited balance sheet

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9

PNG LNG

The PNG LNG Project

Case Study – Papua New Guinea

USD14bn Project finance facilities including ECAs 2009

The ANZ coverage model allowed us to maximise exposure across the value chain including global, regional and local players

Global

• USD18b project led by ExxonMobil (USA) involving Nippon Oil (Japan)

• Significant project financing role/relationship led to capture of additional business in the Super Region

• • Led to follow-on business with clients

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Regional

• Major project structured financing

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• Significant presence and knowledge from strong Regional relationships contributed to strong positioning

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• Led to follow-on business

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Local
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• PNG LNG Task Force set up targeting entire supply chain

• Pre-empt strategy coordinating with international contractors

• On-boarded 56 contractors to the project with deposits and banking products

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10

ANZ’s relationship with Fortescue is an example of how we work with clients during their rowth eriod g p

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Fortescue Metals Group

USD965m Master Lease Facility

2012

2003 - 2006 2007 - 2010

2011 - 2012

Initiated Early Deepening the Core Bank Relationship Relationship

• ANZ first Australian bank to put its balance sheet behind Fortescue (USD126m Truck & Shovel Lease Facility)

• Shortly after listing in 2003, ANZ won the transaction banking its balance sheet behind mandate following a joint pitch by NRG and ANZ Business Bank. Shovel Lease Facility) Fortescue market capitalisation • ANZ led the Port & Rail

• was ~AUD20m at the time infrastructure lease

• In 2006, the account was • ANZ wins tender for the entire

• transferred from Business Bank to ANZ Institutional trade business – managed via ANZ China

• Fortescue raises USD2.0b in 144A secured bond issue and construction commences

• As Fortescue has evolved into fourth largest iron exporter in the world (now with AUD13.5bn market cap), ANZ is a core bank

• Our Super Regional strategy closely aligns with Fortescue’s strategy

• Fortescue currently export the majority of their iron ore into China – risk managed by ANZ’s Trade team

• ANZ holds majority of funds from equity raisings and provides Fortescue’s performance bonding and guarantee requirements

• ANZ was the joint MLA and book runner, arranging the largest known finance lease in Australian corporate history - USD965m Master Lease Facility

• Joint Advisory role for European ECA Facilities

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11

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Appendix

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Top 10 Producers and Producer Companies

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Thermal Coal Copper
TOP 10 PRODUCERS (2011) TOP 10 PRODUCERS (2011)
Xstrata Codelco
Bumi Freeport McM
SUEK AG BHP Billiton
PT Adaro Xstrata AG
BHP Billiton Anglo American
Anglo Amer'n Southern Copper
Drummond Rio Tinto
Ugol (KZRU) KGHM Polska M.
Banpu Antofagasta
Tata Power m tonnes RAO Norilsk m tonnes
0 10 20 30 40 50 0.0 0.5 1.0 1.5 2.0
Oil Iron Ore
TOP 10 OPEC PRODUCERS (2011) TOP 10 PRODUCERS (2011)
Saudi Arabia Vale
Iran Rio Tinto
Iraq BHP Billiton
U.A.E Kumba R.
Kuwait ArcelorMit'l
Venezuela Fortescue
Nigeria NMDC
Mett'loinvest
Angola
Cliffs NR
Algeria
Qatar mbbls/day Metinvest m tonnes
0 50 100 150 200 250 300 350
0.0 2.0 4.0 6.0 8.0 10.0
Source: ANZ Research
13
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Top suppliers by region

Thermal Coal

SUPPLY BY REGION (2011)

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l 36% Indonesia l 18% Australia l 12% Russia l 10% Colombia l 9% South Africa l 5% Nth America l 10% RoW

Oil

SUPPLY BY REGION (2011)

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l 11% Russia l 10% Saudi Arabia l 7% US l 5% Iran l 4% China l 3% Canada l 60% RoW

Copper

SUPPLY BY REGION (2011)

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l 33% Chile l 8% China l 7% Peru l 7% US l 3% Indonesia l 6% Australia l 36% RoW

Iron Ore

SUPPLY BY REGION (2011)

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l 39% Australia l 29% Brazil l 7% India l 7% Russia l 4% Sth Africa l 3% Nth America l 10% RoW

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Source: ANZ Commodity Strategy

14

Stronger long term commodity demand is forecast

- emerging market demand is still modest on a per capita basis. The strongest gains will likely to be in energy market, particularly natural gas

Commodity Consumption Per Capita

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Copper
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25
Taiwan
20
15 Sth Korea
10 EU
China US
5 Japan
Russia
Indonesia
Brazil
0
0 India 10,000 20,000 30,000 40,000 50,000
Real GDP per capita (US$)
tonne/capita
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Oil

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70
US
60
Sth Korea
50 EU
40 Taiwan
30 Japan
20 Russia
Indone 10 s ia Brazil
China
0
India
0 10,000 20,000 30,000 40,000 50,000
Real GDP per capita (US$)
tonne/capita
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Source: ANZ Commodity Strategy

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Iron ore
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1.2
1.0
Russia Japan
China
0.8
Sth Korea
0.6 Taiwan
0.4 EU
Brazil
0.2 US
India
0.0
0 10,000 20,000 30,000 40,000 50,000
Real GDP per capita (US$)
Thermal Coal
1.8
Taiwan
1.6
US
1.4 Sth Korea
1.2
1.0 China Japan
0.8 EU
0.6 Russia
0.4
India
0.2 Indonesia
Brazil
0.0
0 10,000 20,000 30,000 40,000 50,000
Real GDP per capita (US$)
tonne/capita
tonne/capita
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15

ANZ China Commodity Index & China CPI ANZ China Commodit Index tends to lead b one month y y

ANZ China Commodity Index & China CPI

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points %
600 10
8
500
6
400
4
2
300
0
200
(2)
100 (4)
00 01 02 03 04 05 06 07 08 09 10 11 12
ANZ CCI CPI (RHS)
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Source: ANZ Commodity Strategy

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16