Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (August 2016)
27 slides from Anz's debt investor presentation, Aug 16, 2016
Slide 1: ANZ Capital Notes 4 Offer
For personal use only ANZ Capital Notes 4 Offer AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED ( A B N 11 0 0 5 3 5 7 5 2 2 ) August 2016
Slide 2: Contents
Contents For personal use only Offer Summary 3 Financial Update 7 Capital Position 12 Appendix 1 – Key Terms 17 Appendix 2 – Timetable 25
Slide 3: Offer Summary
For personal use only Offer Summary
Slide 4: ANZ Capital Notes - Summary
ANZ Capital Notes 4 - Summary ● Offer by Australia and New Zealand Banking Group Limited (“ANZ”) of ANZ Capital Notes 4 Offer (“Notes”) – Mandatorily Convertible into Ordinary Shares For personal use only Offer size ● $1 billion with the ability to raise more or less ● Perpetual unless Redeemed, Con
Slide 5: Comparison of ANZ Capital Notes to other ANZ securities
Comparison of ANZ Capital Notes 4 to other ANZ securities The Reinvestment Offer is not a simple rollover into a similar investment. The Notes and CPS2 have different rights, benefits and risks. ANZ Capital Notes 4 ANZ Capital Notes 3 CPS2 ASX Code ANZPG ANZPF ANZPA For personal use only Perpetual,
Slide 6: Reinvestment Offer to Eligible CPS2 Holders
Reinvestment Offer to Eligible CPS2 Holders What is the ● An offer by ANZ to Eligible CPS2 Holders to reinvest their CPS2 in Notes. Reinvestment ● Participating CPS2 will be bought-back early for $100 each and the proceeds applied to the For personal use only Offer? Application Payment for Notes ($1
Slide 7: Financial Update
For personal use only Financial Update
Slide 8: Group Strategy - Four medium term strategic goals
Group Strategy - Four medium term strategic goals Rebalancing the Group’s businesses to bring greater focus to what the Group does uniquely well for Australian and New Zealand home owners and small businesses, and for clients driven by trade and capital flows between Australia, New Zealand and Asia
Slide 9: 1H16 Result Overview
1H16 Result Overview 1H16 1H15 PCP A$m A$m % / bps Net interest income 7,568 7,138 6.0% For personal use only Other operating income 2,748 3,058 -10.1% Operating income 10,316 10,195 1.2% Expenses (5,479) (4,603) 19.0% Pre-provision profit 4,837 5,592 -13.5% Credit impairment charge (918) (510) (lar
Slide 10: 1H16 result: Specified items
1H16 result: Specified items For personal use only Total Capitalised Restructuring Asian Minority Esanda Dealer Software expenses Investments Finance sale Costs, including Expenses incurred AMMB Impairment Pro-forma accelerated in relation to charge; Bank of adjustment to amortisation, organisationa
Slide 11: 3Q16 Trading Update
3Q16 Trading Update For personal use only • Statutory net profit $4.3 billion Group • Cash Profit $5.2 billion on an adjusted proforma1 basis • Stable Group NIM2 • The Retail businesses in both Australia and New Zealand performed well. • Retail experienced modest asset growth and margin pressure in
Slide 12: Capital Position
For personal use only Capital Position
Slide 13: Common Equity Capital (CET1)
Common Equity Capital (CET1) ANZ Capital Position at 30 June 2016 • The CET1 Ratios for both the ANZ Level 1 Group and the ANZ Level 2 Group was 9.7% (inc. 2016 interim dividend) For personal use only • The revised dividend strategy targets a payout ratio of 60-65% over time to: • Maintain an unques
Slide 14: AT1 distributions and conversion trigger protection
AT1 distributions and conversion trigger protection Significant management flexibility and common equity buffers Basel 3 CET1 Capital & For personal use only Actions available to strengthen capital Proforma Capital Conservation Indicative buffers2,3 Buffers1 % RWA Maximum Management Distributable Fu
Slide 15: Historical dividend and AT1 distributions
Historical dividend and AT1 distributions Ordinary dividends at risk of dividend restriction if any AT1 coupons not paid Ordinary dividends and AT1 coupons APRA Basel III CET1 Ratio1 For personal use only A$bn 10.0% 1 0.9 6.0 9.5% 0.8 5.0 0.7 9.0% 4.0 0.6 8.5% 0.5 3.0 0.4 8.0% 0.3 2.0 7.5% 0.2 1.0 0
Slide 16: Limited supply of AT1 from Australian major banks
Limited supply of AT1 from Australian major banks International markets available, major bank AT1 > regulatory minimum ANZ’s Additional Tier 1 Securities on Issue For personal use only First Mandatory • Basel II AT1 (CPS2 and CPS3) are preference shares Volume Call CET1 PONV Ccy Conversion subject t
Slide 17: Key Terms
For personal use only Key Terms Appendix 1
Slide 18: Key Terms: Offer Summary
Key Terms Offer Summary ● Offer by Australia and New Zealand Banking Group Limited (“ANZ”) of ANZ Capital Notes 4 (“Notes”) – For personal use only Offer Mandatorily Convertible into Ordinary Shares Offer size ● $1 billion with the ability to raise more or less ● Perpetual unless Redeemed, Converted
Slide 19: Key Terms: Distributions
Key Terms Distributions For personal use only ● Non-cumulative based on a floating rate (90 Day BBSW) ● Expected to be fully franked ● If a Distribution is not fully franked, the cash amount of the Distribution will be increased to compensate holders for the unfranked portion of the Distribution, su
Slide 20: Key Terms: Mandatory Conversion on Mandatory Conversion Date
Key Terms Mandatory Conversion on Mandatory Conversion Date Mandatory Conversion • On 20 March 2026 (“Mandatory Conversion Date”), subject to satisfaction of the Mandatory Conversion Conditions, the Notes will mandatorily Convert into a variable number of ANZ Ordinary For personal use only Shares at
Slide 21: Key Terms: Mandatory Conversion on a Trigger Event
Key Terms Mandatory Conversion on a Trigger Event Trigger Event • Means a Common Equity Capital Trigger Event or Non-Viability Trigger Event For personal use only Common Equity Capital • ANZ determines, or APRA has notified ANZ in writing that it believes, that ANZ’s Common Equity Trigger Event Capi
Slide 22: Key Terms: Optional Exchange & Change of Control Event
Key Terms Optional Exchange & Mandatory Conversion on a Change of Control Event Optional Exchange Date • ANZ may choose to Exchange all or some Notes on issue on 20 March 2024 For personal use only Regulatory or Tax Event • ANZ may choose to Exchange all or some Notes if a Regulatory Event or a Tax
Slide 23: Key Terms: What happens following a Trigger Event?
Key Terms What happens following a Trigger Event? For personal use only 1. A Common Equity Capital or Non-Viability Trigger Event occurs 2. Can Ordinary Shares be issued? No Basel III AT1 written off up to required amount of CET11 Yes 2a. Notes Convert to Ordinary Shares up to required amount of CET
Slide 24: Appendix Timetable
For personal use only Appendix 2 Timetable
Slide 25: Key dates for the Offer
Key dates for the Offer1 For personal use only Record Date (Reinvestment Offer and Securityholder Offer eligibility) 8 August 2016 Lodgement of the Prospectus with ASIC 16 August 2016 Bookbuild to determine the Margin and announcement of the Margin 23 August 2016 Lodgement of the replacement prospec
Slide 26: Contact details
Contact details Issuer For personal use only ANZ Rick Moscati Group Treasurer +61 3 8654 5404 Rick.Moscati@anz.com John Needham Head of Capital & Structured Funding +61 2 8037 0670 John.Needham@anz.com Mostyn Kau Head of Group Funding +61 3 8655 3860 Mostyn.Kau@anz.com Gareth Lewis Senior Manager, C
Slide 27: Disclaimer
Disclaimer Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) ("ANZ") is the issuer of the ANZ Capital Notes 4 (“ANZ Capital Notes 4” or “Notes"). For personal use only A public offer of the Notes will be made by ANZ pursuant to a Prospectus under Part 6D.2 of the Corporations Act.
Australia and New Zealand Banking Group — Debt Investor Presentation (August 2016) on 6ix