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

May 3, 2012

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Macquarie onnecC tions
Australia Conference 2012
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

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Australia Division - 1H12 Result

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% Contribution to Underlying Profit by
Underlying PBP by business
business
%
16 . 1 13 . 4 13 . 1 Wealth
$m
32.7 36.7 38.8 Commercial
2,500 2,387
2,338
2,258
Wealth 51 . 2 49 . 9 48 . 1 R e t a il
2,000
1H11 2H11 1H12
Commercial
1,500
Lending & deposit growth
(HOH)
6%
1,000 5%
5%
5%
4%
3%
Retail 3%
500 3%
2%
1%
0 0%
1H11 2H11 1H12
Retail Retail Commercial Commercial
lending deposits lending deposits
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ANZ Australia vision – To be a super regional bank with a leadershi osition in Australia p p

• Be the bank of choice for high value customers, capturing maximum share of wallet

• Drive convenience and service leadership

• Leverage our Super Regional strength, locally

• Grow our share of broader financial services

• Maintain franchise strength and build for the future.

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Retail – Strategy focuses on growing higher value segments, deeper relationships & sustainable deposit base

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Affluent
50+
Six Priority International Banking
Target Customer Segments
Young Money
Small Business
Staff
ANZ is not a price leader and emphasises CRM platform (iKnow) increasing cross-sell
convenience and service effectiveness
(%) MFI Customer Satisfaction [1] # Products per customer [1,2]
82 2.3
80
78 2.2
76
74 2.1
72
70 2.0
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Feb 12
Peer 1 Peer 2 Peer 3
1. Source: Roy Morgan Research – 6mma – MFI Customer Satisfaction
2. Source: Roy Morgan Research – 12 mma: Traditional Banking 4
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Retail - We have grown our retail franchise through our critical value focus

Clearly defined strategic priorities to drive growth

• Deepening customer relationships and growing share of wallet among high value customers

• Strong growth in mortgages and deposits

• Leveraging our super regional strength , locally.

Outcome

Growth in share of wallet outperforms domestic peers

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(%) Share of wallet – Traditional Banking [1,2]
I n d ex ep S 09 = 100
110
105
100
95
90
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Feb 12
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• Achieved #2 in market share by brand for the first time[1]

• Stronger growth than peers in customer share of wallet ( u p 2.1% p ts in the 12 months to Feb 2012)[1]

• Peer leading MFI customer satisfaction.

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Peer 1 Peer 2 Peer 3

1. Based on Traditional Banking

ANZ Market Share[1]

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Traditional banking market share
2 05
20
15
10
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Feb 12
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1. Source: Roy Morgan Research – 12mma

Retail – Growing our share of critical products

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Deposits Household Deposit Growth
Index Sep 09 = 100
• Retail deposit growth - up 5% HOH (11% PCP) 135
• Growth in household deposits strong over last
three years (CAGR 12.3% Mar 09 to Mar 12) and
up 12.7% in the 12 months to Mar12 [1] 115
• Market share in household deposits up from 100
13.3% to 14.7% over the 3 years ending Mar 12. [1]
95
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
Lendin g Household Lendin g Growth
• Retail Lending up 5% HOH (8% PCP) Index Sep 09 = 100
140
• Household lending system growth slowed in the
last 12 months but ANZ has experienced strong
130
growth over the last 3 years (CAGR 9.3% Mar 09
to Mar 12) and grew at 8 . 2% in the 12 months to
120
Mar 12 [1]
• Credit quality of mortgages continues to improve 110
� 4.4% of the portfolio on a dynamic loan to
value ratio (LVR) above 90% today compared 100
to 6 . 6% in September 2008 despite softening in Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
values across the market.
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Peer 1 Peer 2 Peer 3

1. Source: APRA Statistics

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Retail – We are focusing on digital and online channels to meet customer ex ectations p

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Branch OTC transactions
million OTC transactions
5.5
5.0
4.5
4.0
3 . 5
Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12
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• Online now the channel of choice for an increasing number of customers

• Branch transactions are declining at the rate of ~4% - 5% p er annum

• Branch space is under-utilised and not set up for more complex higher value activities, fit-out costs primarily driven by security

• Focus on reshaping the distribution network, (branches, contact centre and digital banking p a l tf orms ) t o mee t cus t omer nee d s crea ti ng a multi-channel network.

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Internet banking
• Over 5.6m registered users [2]
• Approximately 146 million
transactions totalling more than
$216 billion executed over the
last 12 months (up 4% and 8%
on the prior year respectively).
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Branch reconfiguration

• goMoney

• • More than 600k registered users[1 ] since release in August 2010

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• Transformed branch network aligned to customer demand reshaped as a critical sales and service channel

• Over 20 million transactions executed in the last year totalling more than $12 billion.[2 ]

• Open plan branch design focusing on complex, higher value sales

• Smaller branch footprint, lower cost fit-out.

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1. As at April 2012 2. As at March 2012

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Retail – Delivering customer propositions targeted at key segments aligned to our Super Regional Strategy

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International Banking
Moving to Australia website Services branches
Concierge model
(Online) (Branch) (Phone)
• S im p lifi ed m u ltilin gua l co nt e nt • In c r eased fr o m 1 9 t o 47 • L au n c h ed A ugus t 2 0 11
� English branches (2011-2012) • Multilingual account opening
• 47 targeted branches supported service
� Chinese
by over 400 Banking Specialists • High-touch point of contact for
� Korean with language capability
customers
• Multilingual Online forms • Supported by bilingual marketing • FX and International Money
mater a an i l d i n- b ranc h
• Online content including Transfer Specialists
campaigns
• LifeGuides, country guides, etc.Complements Concierge model • Dedicated support resources to • Arrange Visa Debit Card pick up on arrival
assist in sales coaching for
segment • Based on successful model in
ANZ New Zealand
• Supports Global Retail Referrals
Tool
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Retail – Becoming the bank of choice for Asian Region customers

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Customer Focus Capabilities Outcome [1]
• 400+ in-branch specialists with multi language capability 47 IBS Branches
Specialists who (19 branches Jan-11)
speak your • 1+1 product targets both parents (in home country) and
language and students (Australia)
~ 29 % increase in A-Z
understand your
needs • In-country Business Development Managers leveraging reviews [2]
in IBS branches during
Asian Retail franchises and multilingual Concierge service
Chinese New Year
Main Bank Penetration
• Offshore Mortgages for Chinese residents 25.4%
New tailored up from 22.7% (Mar 11) [3]
products • Mortgages for newly arrived residents in Australia
l aunc h e d
• Credit Cards for international students Share of Wallet 53.3%
up from 46.8% (Mar 11) [3]
• Moving to Australia website with online multilingual
Customer Satisfaction
application form
Understanding 82.1%
banking in • Leveraging strategic partnerships (i.e. NIB, James Cook up from 73.9% (Mar 11) [4]
Australia University and EIC)
• Financial literacy program for international students
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1. Results as at February 2012 unless otherwise stated 2. Source: Customer Analytics and Insight 3. Source: Roy Morgan Research – 12mma , Mar’12 – Traditional Banking: Relates specifically to Migrant segment 4. Source: Roy Morgan research – 6 mma, Mar’12 – MFI customer satisfaction; Relates specifically to Migrant segment

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Commercial – Executing to a clearly articulated strategy

Targeting sectors where we have industry specialisation

• Natural Resources & Infrastructure

• A gr cu i lt ure

• Trading companies with cross-border needs.

Leveraging our super regional capability

• Maintained lead brand p osition in bein g ‘able to service my business needs across Australia, New Zealand and Asia.’[1,2]

• Strengths in Markets, Trade Finance and Cash Management

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Net profit after tax
$ m
25% CAGR
980
912
632
530
FY09 FY10 FY11 1H12
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Diversifying sales activity, ncreasei d bank crosssell

• Trade finance, Markets and Mortgages

Growing customer base and deepening relationships

• Acquired 12,400 net new customers (predominantly SME businesses) in the first half (up 3%)

• Increased market share (up 110 bps since Jun 11, up 70 bps YTD Mar 12)[1,3] through growth in the share and size o f cus t omers an d en h ance d s h are o f wa ll e t

• DBM Business Financial Services Monitor, 12-month rolling average

• 31% of all businesses in Commercial associate ANZ with ‘able to service my business needs across Australia, New Zealand and Asia in Mar12 n=17,372; 31.7% in Sep-11 n=17,696.

• Commercial includes most small and medium sized businesses Base: Jun11 n=17,305; Sep11 n=17,296 and Mar12 n=17,128

Net loans & advances (incl . acceptances) by business

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Business Banking
33%
Regional Commercial
Banking
30%
Small Business
Banking
28%
9% Esanda
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Commercial – Super regional advantage

Super regional platform and core capabilities driving cross-sell and new-to-bank acquisition

Super regional platform

• The only bank able to connect Commercial customers across Asia, New Zealand and Australia via a network that spans:

• 1 200+ branches

  • ,

• ~270 business centres

• ~3,000 Commercial frontline staff

Cross-border referrals

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600 43% increase
400
200
0
1H11 2H11 1H12
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• The value of this connectivity is evidenced by a 43% g rowth in cross-border referrals PCP.

ANZ strengths

• To further enhance our super regional offering we’re leveraging ANZ’s market leading capabilities in:

ANZ RMB Capability:

• Make and receive RMB trade & services payments to your Chinese counterparts

• Integrated RMB online capability - FX Online & ANZ Transactive

• Trade finance: Best Trade Finance in Australasia (2009, 2010, 2011)[1]

• Markets: ‘Best FX Product Corporate & Business Bank’[2]

• Cash Management: ANZ Transactive cross-border cash capability .

• Offshore RMB Foreign Currency Account (Australia, New Zealand, Hong Kong) solutions

• Trade Finance solutions (Letter of credit / Trade finance, etc.) available to support RMB denominated trade transactions

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1. Trade Finance Magazine – Awards of Excellence. 2. 2011 Australian Banking & Finance Corporate and Business Bank Award.

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Commercial business summary

Small Business Banking

• Acquiring new-to-Commercial customers by tapping into ANZ distribution networks

• Greater focus on cross sell, margin management and customer retention

• Enhancing our innovation offering for Small Business Customers

Outcome:

• Net Customer growth up 4% Mar 12 YTD

• Market Share u p 1% p t as at Mar 12 YTD[1,3,4]

• Deposits up 5% HOH (17% PCP)

• Lending up 6% HOH (13% PCP).

Regional Commercial Banking

• Leveraging bank-wide sector expertise to identify and ca p ture o pp ortunities within ma j or p ro j ects and Farmgate business

• Capitalising on the opportunity to connect customers across the value chain to our Asia Pacific network

Outcome:

• 1H12 NPAT grew 5% HOH

• Lending FUM stable despite seasonal harvest paydowns

• Deposits up 5% HOH (10% PCP)

• Market share improved from 15.0% in Mar 11 to 16.2% in Mar 12.[1,3,7]

Business Banking

• Growing deal size by focusing on new-to-bank trading companies with more sophisticated needs

• Leveraging super regional connectivity and offering new serv ces o cus i t t omers e.g. ra ( t d e nance n fi i RMB)

• Enhancing frontline skills and capabilities

Outcome:

• Lending up 4% HOH (+9% PCP)

• Average new to bank approvals up 14.5% HOH (26% PCP)

• M ar k et s h are cont nues to mprove rom i i f 11 . 7% i n M ar 11 to 13.3% in Mar 12.[1,3,5] Customer Satisfaction for the same period up from 6.8 to 7.3.[2,3,6]

Esanda

• Largest provider of auto finance to the automotive dealer network and market leading Commercial Broker in asset finance in Australia

• Significant source of new-to-bank referrals for ANZ

• Use of hubs improving speed to market on decisions and loan settlements

Outcome:

• Revenue g rowth of +4% HOH ( +10% PCP )

• Positive Lending momentum up 3% HOH (4% PCP)

• New business writings[8] up 9.6% HOH (18.9% PCP)

  • Dealer satisfaction improved

• ~4,500 new-to-bank customers introduced to ANZ Group from Esanda cross sell initiatives.

• DBM Business Financial Services Monitor. 12-month rolling average

• DBM Business Financial Services Monitor, 6-month rolling average score using an 11-pt scale where 0 is Extremely Dissatisfied and 10 is Extremely Satisfied

• Commercial includes most small and medium sized businesses Small Business Banking includes most small businesses in metro areas excl Agribusinesses Regional Commercial Banking includes most small and medium sized non-metro businesses and Agribusinesses

Business Banking includes most medium sized businesses in metro areas excl Agribusinesses

1. Base: Sep11 n=8,306 and Mar12 n=8,811 5. Base: Mar11 n=3,007 and Mar12 n=2,718 6. Base: Mar11 n=1,872 and Mar12 n=1,336 7. Base: Mar11 n=6,987; Mar12 n=5,599 8. Writings covering Auto Finance, Broker and Asset Finance

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Driving sustainable productivity

Drivin sustainable roductivit g p y

	Hubs		Technology & Channels		Process		People & Products
	• Capacity and capability through offshore Hubs in Bangalore, Manila, Chengdu, Fiji • Access to additional		• Investing in eChannels and customer facing technology, including goMoney, online sales, internet banking h		• Operations Process Transformation – Simplifying and standardising operational processes dlild		• Simplifying product offerings across both Retail and Commercial • Simplifying pricing options
	talent pools and resources • Continuous standards improvement – with improving risk profile		enancements , Transactive, FX Online • Reconfiguring the branch network • Replacing and consolidatingexisting		an soutons everage across ANZ • Mortgage process improvement in single national settlement model		• Business simplification – Sustainable approach to organisational design • Removing bureaucracy and empowering and
	T d i i • ren mprovement n cost productivity • Straight-through /automation / integrated processes		systems • Further roll out of iPads for Commercial staff conducting A-Z Reviews		• Redesigning sales and back-office processes, products offerings/channels and technology to increase banker time spent on		bli l ena ng our peop e to make the right decisions.
	• Using technology as an enabler of flexibility.		• Engaging with customers and their networks through social media.		customer acquisition and support • Project mobilisation – project to accelerate the development of
					projects in their early phase.

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Australia Operations – Delivering significant savings through improvement in productivity and costs

Improved productivity and contained costs despite significant increase in volume[1]

• Implemented a number of initiatives to deliver pro d uc ti v it y sav ngs v a as i i t k e li m na i ti on an d automation, process improvement, better workforce management via ATOM (real-time management tool) and improved queue management

• Core volumes and tasks for Australian operations increased by ~ 11% . At the same time average FTE down 1% PCP and costs flat PCP

• Goal is to absorb volume increase in FY12 through improved productivity and reduction in costs

Delivered improved performance against customer SLA’s[1]

• Improved servicing levels – up 5% to 96%

• Reduced process related complaints by ~16%.

Capability build

• Hubs program driving new capabilities (i.e. further capability in Manila and Bangalore)

• Strong focus on cross-skilling staff

• Rollout of workflow applications and tools .

• All comparisons are HOH (Mar 12 vs. Sep 11) unless otherwise stated.

• Productive Hours = Time spent on "core" task and excludes diverted time, which includes meetings, one-on-ones, training and other "shrinkage" (i.e. annual leave and sick leave).

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Task Volume
Work output hours
400,000
200,000 FY12
YoY Growth
11%
0
Oct-09 Apr-10 Oct-10 Apr-11 Oct-11
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Full Time Employees
# FTE
4,000
FY12
3,000
YoY Ave Growth
-1%
2 , 000
Oct-09 Apr-10 Oct-10 Apr-11 Oct-11
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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 Liti g ation Reform Act of 1995. ANZ does not undertake an y obli g ation to p ublicl y 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 fax: (613) 8654 9977 e-mail: jill.craig@anz.com

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