Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Non-Deal Roadshow (November 2005)
75 slides from Anz's roadshow presentation, Nov 10, 2005
Slide 1: 2005 Roadshow
Slide 2: Strategic Overview
Strategic Overview ANZ
Slide 3: Record profit, ahead of target
Record profit, ahead of target Strong revenue momentum in second half 2005 v 2004 NPAT* $3,056m $ 11.9% Cash EPS* 175.2c % 8.8% Dividend 110c tf 8.9% 2hO05 v 1h05 NPAT* t 4.8% Total Income* t 4.9% Other Operating Income* t 7.6% ‘excluding WZ incremental integration costs and significant tems nue
Slide 4: Real progress on strategic agenda in 2005
Real progress on strategic agenda in 2005 Where our growth will come from ‘Medium Term 25 years. ‘Short Term 12 ye ‘Substantial moeertum in Pos-itegration, sroroved ‘eran businesses ‘rtus expacte om Mz ANZ Strategy Day - 7 September 2005 Seamless succession = Graham Hodges New Zealand = Mark Paton C
Slide 5: ANZ's strategic priorities
ANZ’s strategic priorities Maintain narrow geographic focus « Build a stronger strategic presence in Australia * Defend leadership in NZ, invest in underweight segments, and secure the benefits from integration « Expand selectively in emerging Asia - Pacific markets Actively manage portfolio of spec
Slide 6: Growth - Increase revenue growth to 7-9% per annum
Growth - Increase revenue growth to 7-9% per annum Continue to invest in faster growth segments * Leverage high natural growth in Personal Banking * Consolidate strong position in Institutional and invest in faster growth Investment Banking segments * Build on strong Corporate position and leverage
Slide 7: Transformation - Lean, agile, sharp, externally-focused
Transformation - Lean, agile, sharp, externally- focused Target 40% cost-income ratio ¢ Realise benefits from New Zealand integration * Reallocate resources to customers and markets * Non-customer overhead reduction program * Create new integrated global operations specialisation « New simplified te
Slide 8: Invest in high growth priority areas, improve return from low growth areas
Invest in high growth priority areas, improve return from low growth areas or de-emphasise Australia & New Zealand High Growth T Small Je Trade Business a cards Business Banking | Institutional Medium Growth| Non-Lending’ Corporate Banking Institutional ‘Lending’ Auto finance Low Growth Weaker Stron
Slide 9: Creating Australasia's leading bank
Creating Australasia’s leading bank Mission - to become Australasia’s leading bank Favourable 2006 outlook: “Environment should be broadly similar to 2005, enabling us to produce continued good results in the year ahead” New Growth and Transformation agenda: Growth 7% - 9% annual revenue growth Tran
Slide 10: Financial Performance
Financial Performance 10 ANZ
Slide 11: Good full year result: strong revenue momentum in the second half
Good full year result: strong revenue momentum in the second half 220 (322) won be 288 Scorecard FYOS 2HO5 66 (86) 7.6% 10.2% 7.3% (4999 Volume Growth YY vv 1 2 = Bm 2018 Imerest arsine 4m ay 8 8 2 x 2815 Se & F g Non Int. Income = ¥ vv @ os 2 s 2 7 ra eg Expenses x a 2B & . 88 a = § ce Provisions S
Slide 12: Strong lending growth offset by margin pressure
Strong lending growth offset by margin pressure Personal Institutional Corporate NZ Businesses* (NZD, normalised**) Esanda & UDC Group (normalised**) ‘excludes markets, ‘NH includes tax equivalent gross-up and margin decline Includes joint variance Net Interest Income* Drivers FYO5 290m -$98m, $192m
Slide 13: Excluding FX hedge impact, margin decline close to longer term trend
Excluding FX hedge impact, margin decline close to longer term trend Margin decline a mix of Structural impacts and Competition bps 249.0 (2.8) a) ; | FS x > & B= (28) _ 4.3 235.0 23 ¢ = 5 5 €f 2s «wy Bg gs = 25,2 2 — 38 @ ° s £3 3 ys 3 ge 8 2 5 Sep-04 Sep-05 (14.0bps)_ > refer slides 27 & 28 for de
Slide 14: Underlying margin contraction in line with peers
“Underlying” margin contraction in line with peers Headline NIM contraction (14.0bps) (3bps) Bank Specific Items * NBNZ acquisition full year impact 0.6bps * FX revenue hedging 2.6bps * Treasury mismatch income 3.5bps * Accounting & other changes (4bps) Underlying NIM contraction (7.3bps) (7bps) *So
Slide 15: Strong 2nd half non-interest income performance
Strong 2" half non-interest income performance Key Drivers (2HOS v 1HO5) Personal * Volume related fee income increases * Increase fee income from Wealth Management business Institutional * Strong client flow in markets business * Good fee growth in C&SF * Improved cross sell by Client Relationship
Slide 16: Improved revenue growth & lower credit costs has permitted higher growth investment
Improved revenue growth & lower credit costs has permitted higher growth investment Headline Cost Growth - 10.8% Growth Underlying Cost Growth - 3.7% Investment* 113 4,437 Underlying NBNZ Normalised* Bs _ 4,116 poke 7 a4 ee csi srt 4,005 Sep-04 Sep-04 Sep-05 Normalised ‘includes investment In branch
Slide 17: Growth investment weighted towards increasing frontline FTE
Growth investment has been weighted towards increasing frontline FTE Approx. 2,200 new FTE's in FYO5 800 600 400 200 180 i= ‘| lif. Personal NZ Asia Pacific Corporate Inst. Esanda& Group & UDC Integration * Approx. 70% of new business* FTE in frontline roles * Full run rate of FTE investment to driv
Slide 18: Solid momentum in Australia
Solid momentum in Australia Division Personal Banking Institutional New Zealand* (wz$) Corporate Esanda & UDC Asia Pacific NPAT (Half on Half) 9% 4% Flat (0.5%) 4% IE NPAT increase (2)% cin BE NPAT decrease I Prior period NPAT NPAT (Year on Year) 15% 8% 9% (5%) 0 400 800 1200 Geographic Australia* N
Slide 19: Credit quality remains favourable, delinquencies down on 1H05
Credit quality remains favourable, delinquencies down on 1H05 Non Accrual Loans 700 600 500 400 300 200 FYO2 FYO3—-FYO4 mma Net Non Accrual Loans (LHS) —#Net Non Accrual Loans / Net Lending Assets (RHS) continue to reduce FYOS 0.6% 0.4% 0.2% 0.0% 2.4% 0.8% Delinquencies remain low ) —ortgages 2.0%,
Slide 20: A-IFRS indicative impact on key measures
A-IFRS indicative impact on key measures », Cash EPS 175.2 cents Return on Ordinary eauity 17.3% Return on Assets 1.08% General/Collective Provision to RWA’s 0.99% Net Interest Margin 2.35% Cost to Income Ratio 45.6% ‘ACE Ratio 5.1% Ratios for year ended or as at 30 September 2005 ‘excluding signifi
Slide 21: Increased earnings volatility anticipated under IFRS
Increased earnings volatility anticipated under IFRS driven by provisioning charge IFRS Provision charge exhibits greater volatility than ELP charge * ELP charge relatively stable compared to total IFRS provision charge Total 2002 ELP charge including special charge * Collective provision function o
Slide 22: Capital - regulatory position still under review
Capital —- regulatory position still under review 1. IFRS considerations * Initial capital impacts of IFRS expected to be modest * approx. $1.1b decrease in book equity, ACE and Tier 1 impact immaterial * APRA treatment of IFRS adjustments (eg collective provision) * — Future dividend policy will ge
Slide 23: 2006 headwinds represent ~2% drag on cash EPS
2006 headwinds represent ~2% drag on cash EPS Summary of 2006 Headwinds Structured Deal Aust Deals NZ Deals Run Off ING Transi tax run-off NZ Synergy Benefits ING Capital Investment Other Discontinued Inst. Business NPAT ($m) -50 -40 -30 -20 -10 oO 10 20 23
Slide 24: Group Outlook for 2006
Group Outlook for 2006 Revenue * 7% - 9% growth: * Lending & deposit growth to remain strong * Continued momentum in Australian businesses supported by specific growth initiatives * Structured deal run-off & reduced INGA cont transitional tax relief are key headwinds ion due to end of Expenses + 5%
Slide 25: Summary - Good result, good momentum
Summary - Good result, good momentum 2005 2006 e A quality result, ahead of Environment original target broadly similar to * Strong revenue momentum in 2005 second half Earnings growth again weighted to ¢ Stronger revenue growth 2nd half permitted increased investment ¢ Low risk, strong credit quali
Slide 26: Additional Financial Information
Additional Financial Information 26 ANZ
Slide 27: Profit & Cash EPS reconciliation
Profit & Cash EPS reconciliation Income Expenses Operating Profit Provision for Doubtful Debts. Tax & OEI NPAT Goodwill Significant Items Pref. Share Dividend Cash NPAT Average Shares Basic Cash EPS (cents) 8,645 (4,026) 4,619 (632) (1,172) 2,815 189 (48) (98) 2,858 1,774 161.1 27 9,350 (4,515) 4,83
Slide 28: Cash EPS comparison - AGAAP v A-IFRS
Cash EPS comparison — AGAAP v A-IFRS INet interest income 5708 638 4 | 6301 INon.interest income 3552] 45 (684) 13_|_ 2901 |Operating expenses (4,326) (80) ©) _| ca.azsy |Goodwal amortisation (7a) | 179 o [Bad & doutstul debts (580) (573) [Tax & 0&1 237) 16 6 | 237 NPAT 3016 | 224 (64) (12) 4o_| 315
Slide 29: Initial IFRS impact on capital likely to be modest
Initial IFRS impact on capital likely to be modest, earnings volatility may impact dividends Initial IFRS impacts on capital are forecast to be modest* Derivative Accounting 33 (208) = Defined Benefit Scheme (107) (107) = Credit Provisioning 191 191 (235) StEPS Reclassification (992) = = Fee Revenue
Slide 30: Illustrative A-IFRS Balance Sheet adjustments
Illustrative A-IFRS Balance Sheet adjustments [wit Assets & due forcther talc. | 17.948 17948 [rading& int secs Sar vate asots | 13.226 3000 8 1 | 6205 Jeticane& advances 230982 om tse 307 za2ant foustomers abit for acceptances 13440 13490 fost ira! instaments ° soos | S05 JReowator posits 180 180 [
Slide 31: Continued strong balance sheet growth
Continued strong balance sheet growth Personal * Solid mortgages and credit card FUM ‘growth driving lending Lending and Deposit Volumes ‘* Good growth in transaction & savings Growth (EOP) balances delivering above system deposit growth Institutional * Increased domestic lending following de- riski
Slide 32: Growth in Mortgages and Long Term Wholesale funding driving margin impacts
Growth in Mortgages and Long Term Wholesale funding driving asset & funding mix margin impacts Mortgages continue to grow strongly Approx Asset Mix Margin (FY04 v FY05) ees other Low NIM Impact (ops) os Institutional (1.0) 0.3) Growth in long term funding key driver of funding mix Funding Mix NIM Im
Slide 33: Australian Geographic margin contraction driven by funding mix
Australian Geographic margin contraction driven by funding mix, competition & revenue hedging impacts Funding mix & competition driving Australian interest margin contraction bps 248.2 (6.3) (2.4) (5.7) x = x fe = (4.0) = 3 23 :;m- 22 3 Re, ¢ 2 B58 3. 6 o 33 22 &= 32 Sep-04 Sep-05 (14.0bps). ————> 3
Slide 34: Fixed rate mortgage competition driving NZ margin contraction
Fixed rate mortgage competition driving NZ Geographic margin contraction Strong Fixed Rate Mortgage competition NZ mortgages driving adversely impacting NZ margins margins down (competition impact on NZ margin bps Sep 04 ~ Sep 05) 250.4 (8.9) hes War impact A1bps x x =z 2 # 1.6 2 3 = s 8 = 5 OS 5 oe
Slide 35: Capital position remains above target range
Capital position remains above target range % 7.00 6.00 5.50 5.00 4.50 4.00 Drivers of the ACE ratio Earnings 1.61 RWwA growth (0.67) Dividends (4.02) Buy Back x 5.09 (0.10) (0.05) B07. =_ Tee Targetrange 9 ojeu, 0.05, shares, 0.16 Sep-04 Sep-05 *Core Cash Earnings, defined as earnings after hybrid
Slide 36: Capital efficiency driven by access to non-innovative hybrids
Capital efficiency will be driven by access to non- innovative hybrids ‘© Current hybrid’s are expected to qualify as innovative Tier-1 capital ‘+ Innovative hybrid Is currently ‘~$1bn in excess of APRA’s proposed 15% limit and is expected to be corrected by organic growth by 2010 + Non-Innovative c
Slide 37: Cost of Capital dependant on access to Non-Innovative capital
Cost of Capital dependant on access to Non- Innovative or Preference Share capital + As we are capped out on Capital mix for marginal RWA Innovative capital until growth next 5 years 2010 marginal RWA growth will be funded by either rc ‘ Core or Non-Innovative CoC 7.5%* CoC8.2%* CoC 8.9%* CoC 8.0%*
Slide 38: Current hybrids
Current hybrids Interest Rate Floating ~ BBSW + 100bpts ANZ StEPS Trust Securities _€ Trust Secu ssi. billion Currency & Amount. $1 billion + us$350m ~ Jan 2010 EUR500 milion + S$750m ~ Dec 2013, Issue Date 24 September 2003 26 November 2003 13 December 2004 Final Maturity Date 14 September 2053 15
Slide 39: New Zealand currency risk substantially hedged
New Zealand currency risk substantially hedged * Revenue hedging continues to be Attractive rates for hedging undertaken when currency is assessed 1.40 future revenue to be outside its normal trading range and fair value estimates. it, ‘+ Under IFRS, hedge accounting remains until 1 Oct 2006. Subseq
Slide 40: Credit Quality
Credit Quality 40 ANZ
Slide 41: ELP reduction reflects improved credit quality
ELP reduction reflects improved credit quality Improved risk profile drives ELP charge exceeded SP’s reduction in ELP rate by 63% in FYO5 bps $m 4 200 (2) 160 120 =" Specific Provisions ee ELP MELP Top-Up ‘Normalised ELP <2? & Bo % Bb ne 0 $s 2 £2 $2 2 8 3 2 g 8 as 8 ge §8 6 aF & s e é $3 22 32 32 3
Slide 42: Net Specific Provisions down 19%
Net Specific Provisions down 19% * Credit quality in Australia continues to improve, with lower Specific Provisions * Specific Provisions up in New Zealand due to two medium sized Corporate accounts plus a handful of smaller exposures impacted by a significant downturn in the exported apples industr
Slide 43: Non Accrual loans remain at historically low levels
Non Accrual loans remain at historically low levels Gross Non-Accrual Loans at historical lows* 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% NO gr oO SS SL PL LPI S POP PD * Gross Non-Accrual Loans to Gross Loane & Acceptances New Non Accruals impacted by a small number of accounts $m 1400 1.0%
Slide 44: New Zealand portfolio remains sound
New Zealand portfolio remains sound, a small number of isolated defaults Risk Grade Profiles Australia New Zealand $175bn $64bn 10.0% AAA to BBB BBB- BB+ to BB BB- >BB- a4 * NZ overall portfolio remains high quality, in line with Australia * New Zealand new Non Accruals increased with the downgrade
Slide 45: Closely monitoring potential impacts of the high oil price
We are closely monitoring potential impacts of the high oil price Driver Impact of ‘+ The recent spike in oil prices is High likely to impact on credit quality I Prices | | | Nominal and Real Oil Price gerbera eee sessszes& 8 Note: Ol price ig West Texas Intermedtate (WTI); Shaded areas denote ol pr
Slide 46: Credit quality robust in Mortgages Australia
Credit quality robust in Mortgages Austra' ‘* Dynamic LVR profile reflects strong migration into lower LVR buckets compared to time of origination ‘* Owner Occupied dominates the portfolio, although increased uptake of Equity products continues. * 60+ day arrears have improved in the Sep-05 quarter.
Slide 47: Inner City arrears immaterial
Inner City arrears immaterial Inner City Accounts & Exposure 495 Purpose of inner city lending 1 # Accounts shifting towards Owner Occupied Exposure 2 Dockiands Southbank Zetland / Waterloo (nsw) Inner city delinquencies negligible 11-Mar-04 mSep-04 mMar-05 1 Sep-05 Sep-02 Sep-03—Sep-04 —Sep-05 Owne
Slide 48: Industry exposures - Australia & New Zealand
Industry exposures —- Australia & New Zealand Health & Community Cultural & Recreational kt tt Lending Assets (AUD) 9% of Portfolio (RHS scale) % in High Risk (RHS scale) % in Non Accrual (RHS scale) Forestry & Fishing Services Services 10.0% 2060 10.0% 2060 10.0% 4.0% 1060 4.0% 1060 * som Low sen —
Slide 49: Industry exposures - Australia & New Zealand
Industry exposures - Australia & New Zealand Lending Assets (AUD) 9% of Portfolio (RHS scale) % in High Risk (RHS scale) 9% in Non Accrual (RHS scale) 200 1800 108 sn oon kt tt Finance - Other Mensrer: & es = 2000. 1000 be. ob0. Sapte” Sep-05 Sep-03” Sepo4 Finance - Banks, Building Soc etc. Accommod
Slide 50: Industry exposures - Australia & New Zealand
Industry exposures — Australia & New Zealand 2060 Bending assets (AUD) — pe % of Portfolio (RHS scale) tm High Risk (AHS sate) In Non Accrual (RHS seal) Real Estate 7 % Retail Trade Agriculture Operators & Dev. ig! 100% 2000 100% 108 500 20% sn = > 1" : SS 1.0% Sbn: 10% 2.0% 0 +-2,0% or as ‘Sep-02*
Slide 51: Divisional Performance
Divisional Performance 51 ANZ
Slide 52: Customer satisfaction and market share has grown
Customer satisfaction and market share has grown Leading major bank customer satisfaction Overtaken NAB and closing the market share gap to WBC % (Main Financial Institution*) (share of traditional banking products) ee Market Share Gap Closest major 80 peer ' 4.0% 2.9% 2.0% | 1.5% 75 H 70 65 60 55 s
Slide 53: Mortgages: solid FUM growth with strong performance by ANZ proprietary channels
Mortgages: solid FUM growth with strong performance by ANZ proprietary channels Housing market continues to deliver attractive FUM growth* ($b) 89.9 eed 2003 2004 2005 exces Secured fests Retail channels increasing market share; Origin refocusing 13% Tatar Mortgages* ae ae sep-04 12% 11% 10% + Sep-0
Slide 54: Banking Products: good FUM growth in Savings & Transaction accounts
Banking Products: good FUM growth in Savings & Transaction accounts Transaction FUM: Access accounts driving growth (A$b) 79 8.2 82 8.5 Hos 2H04 1H05 2H0s Access Other, Good growth in Transaction Savings FUM: good growth across aaa ‘Se 25.7 21.8 Hos 204 1H05 2H0s ‘Cash incl V2+ Term Deposits Other D
Slide 55: Consumer Finance: strong growth in all products
Consumer Finance: strong growth in all products driving market share gains quencies trending down Continued strong FUM = across the portfolio (90+ day arrears) 13% growth wie Te ee 1.0% 0.8%] 0.6% 0 0.2% 0.0% + HOS cards ‘Personal Loans All card products adding economic indexed annual EVA) Proprieta
Slide 56: INGA: underlying business performing well
INGA: underlying business performing well Note ~ all data based on INGA December Year End, 1HOS at Jun-05 Solid underlying profit growth $m 350 300 250 200 150 100 50 o+ 2003 2004 2005 mist Half 2nd Half Continued strong FUM growth iF 22% increase jun-03, Jun-04 3un-05 Retail & Mezzanine Wholsesale
Slide 57: INGA JV: strong underlying contribution
INGA JV: strong underlying contribution partially offset by capital investment hedge losses Full year NPAT to Sept-05 increased 9% driven by: Investment Earnings partially offset by ANZ Hedge losses '* Funds management income increased by 5% based on bid higher average funds under management underpi
Slide 58: Institutional: strong second half momentum
Institutional: strong second half momentum Business performance in line th expectations (NPAT growth) = - aT Ss ae oe Strong non interest income growth delivered in 2HO5S Unreaised gain on trading instruments 8 Undertying Growth Li: Other Income Lending Asset growth moderating in 2HO5 =2% thos = 2Ho
Slide 59: Institutional: offshore margin pressure
Institutional offshore margin pressure Increased client NIACC* 350 110 300 100 250 90 anos 2Ho# 1Hos 2405 me Clent NIACC © —=% NIACC to Debt Product Lending (LHS) Australian Bank with most cross-sell = Peter Lee Associates 2005 “‘NIACC - Net income after Cost of Capital 59 increased cross sell, part
Slide 60: New Zealand: financial performance softer than expected
New Zealand: financial performance softer than expected, but good operational momentum Strong performance in NBNZ Ret Corporate and Rural, whilst ANZ Retail, Institutional and UDC reposition* 262m NPAT (NZ$) 203m rad Soave % Growth (3.296) (4.0%) 135m 19.5% wis 12.5% 41m (2.4%) ANZ Retail — NBNZ Ret
Slide 61: Both NZ retail brands continue to hold market share
Both NZ retail brands continue to hold market share & improve customer satisfaction Stabilising mortgages position* (share of new mortgage registration by number) Household deposits share stable at ~37%** 35% $88 30% 25% ae 20% 35% a ——————— SS 0K: 10% 5% 4 azn ASB 25% 0% / BNE, Westone se ‘Aug- Dec
Slide 62: NBNZ integration on track
NBNZ integration on track Nz$m 2004 2005 2006~=——2007_—cikeiy tobe approximately Total Integration costs 49 139 52 0 @ ee) Incremental Integration Opex 29 Bs =P " Cost synergies 6 33 39 sa Bee Revenue synergies 1 26 47 53 provision and; Attrition 20 33 34 4 Fale resoutees No material change to forec
Slide 63: New Zealand structured finance transactions
New Zealand structured finance transactions * IRD audit focused on so called “conduit” transactions * Notices of Proposed Adjustment and assessments received as expected * Net potential liability on all similar transactions $NZ308m* * Legislative change to ‘thin cap’ rules in NZ will make these tran
Slide 64: Corporate: Strong performance for Corporate Banking
Corporate: Strong performance for Corporate Banking, significant investment in Small Business Corporate Banking - good revenue and cost momentum ‘a <P | 350 35% 300 30% 250 25% 200 20% 2003 2004 2005 memRevenue — “®=CTI % (RHS) Significant increase in WSTMS* stansn deal flow in 2005 Asset (m) 20 130
Slide 65: Business Banking: growth has moderated, fundamentals remain sound
Business Banking: growth has moderated, fundamentals remain sound ‘+ Business Banking balance sheet growth has moderated, reflecting: Balance Sheet growth has moderated + slowdown in property related lending * increased competition in the market; margins have remained relatively stable * steady new
Slide 66: Esanda & UDC: good growth in Australia
Esanda & UDC: good growth in Australia, NZ impacted by restructure Strong NPAT growth in Solid Revenue growth and continued cost discipline driving CTI below 40% sm 500 46% sm Ms — 400 — 15% 42% — 14% 17% 300 (ust) 38% 200 6% 2002 2003 2004 2005 2002 2003 2008 2005 Australia NZ mmm Revenue —Cost to
Slide 67: Asia: good underlying performance
Asia: good underlying performance ANZ Asian Network ‘* Excluding Treasury NPAT grew 23% ‘+ Return to balance sheet growth following de-risking, lending up 10% yoy, deposits up 12% yoy ‘© Good momentum in Institutional businesses, Markets, Trade and Corporate & Structured Financing ‘+ Continuing to a
Slide 68: Pacific: strong performance across the region
Pacific: strong performance across the region ‘+ NPAT up 17% on FYO4, driven by: + Lending growth of 23% pcp (12% hoh) ‘+ Deposits growth of 20% pep (14% hoh) ‘+ Good momentum across the Pacific underlined by: ‘+ Strong staff engagement of 68%, well above Group ‘+ Increased sales focus and training
Slide 69: Good progress on corporate responsibility agenda
Good progress on corporate responsibility agenda + “Community Involvement” No.2 value evident in ANZ’s culture according to our staff (Customer Focus was number 1) + Ranked in the top 10 of top 10% of banks globally on the Dow Jones Sustainability Index + 100% for community management practice on Co
Slide 70: Community investment strategy is leading practice
Community investment strategy is leading practice TIA, | = Francia ecucaton pogram for ats facing nancial aeaty,detvered by : Smmunty partners and nance d + More than 400 facta trained to Severe program and moe thon far-ouram'to re 100,000" {ncomas over the ext Me Fears. pornerse + vidorion state Go
Slide 71: People strategy has created the most engaged workforce
People strategy has created the most engaged workforce of major banks + year focus on cultural transformation and valuesasea edson moking. 20,000 staff hove pertipated Sreokout workshops. Target to reach 7000 frntie taf bend of 2006, Breakout recharge” launched with 2 feu fn enhancing teamwork and c
Slide 72: Integrating environmental and social considerations
Integrating environmental and social considerations into our business practices Institutional & Operational New Products Corporat Environmental and Services Sustainabi Footprint Demonstrating PEE Rp er ema Meee rey business hectare: | orem mance rete arco leadership by \ (iReees brett Se wanes eee e
Slide 73: Summary of forecasts - Australia (bank year)
Summary of forecasts - Australia (bank year) 2005 2006 2007 GDP 2:3 3.4 3:7 Inflation 3.2 2.1 2.1 Unemployment 5.1 5.1 5.0 Cash rate 5.50 5.50 5.75 10 year bonds 5.4 5.3 5.5 $A/$US 0.76 0.68 0.76 $A/$NZ 1.09 1.15 1.27 Credit 13.3 10.9 10.5 - Housing 13.4 13.3 12.2 - Business 13.1 8.5 8.7 - Other 13.
Slide 74: Summary of forecasts - New Zealand (bank year)
Summary of forecasts — New Zealand (bank year) 2005 2006 2007 GDP 27 1.9 2.6 Inflation 3.4 3.2 17 Unemployment 3.6 4.4 4.7 Cash rate 6.75 6.75 6.00 10 year bonds 5.7 6.0 6.1 $NZ/$US 0.70 0.59 0.60 Credit 16.1 9.9 7.3 - Housing 15.8 10.0 8.2 - Business 20.0 9.9 6.2 - Other 7.5 7.4 7.2 All Forecasts f
Slide 75: Searchable text section of graphics
Searchable text section of graphics shown above [ GRAPHIC] 2005 Roadshow Australia and New Zealand Banking Group Limited November 2005 [LOGO] St rategic Overview [LOGO] Re cord profit, ahead of target Strong revenue momentum in second half 2005 v 2004 NPAT* $ 3,056m é 11.9% Cash EPS* 175.2c é 8.8% D
Australia and New Zealand Banking Group — Non-Deal Roadshow (November 2005) on 6ix