Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (August 2011)
18 slides from Anz's debt investor presentation, Aug 23, 2011
Slide 1: CPS3 Offer
For personal use only CPS3 Offer AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED August 2011 Convertible Preference Shares (“CPS3”) Offer
Slide 2: Disclaimer
For personal use only Disclaimer Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) ("ANZ") is the proposed issuer of the ANZ convertible preference shares ("CPS3"). A public offer of CPS3 will be made by ANZ pursuant to a Prospectus under Part 6D.2 of the Corporations Act. A Prosp
Slide 3: CPS3 – Offer Summary
For personal use only CPS3 – Offer Summary Offer • Offer by Australia and New Zealand Banking Group Limited (“ANZ”) of convertible preference shares (“CPS3”) Offer size • $750 million with the ability to raise more or less Purpose • CPS3 are being offered as part of ANZ’s ongoing capital management
Slide 4: CPS3 – Offer Summary (cont.)
For personal use only CPS3 – Offer Summary (cont.) Issue Price • $100 per CPS3 Listing • ANZ will apply to have CPS3 quoted on ASX and CPS3 are expected to trade under ASX code ‘ANZPC’ Conversion & • CPS3 are perpetual and do not have a fixed maturity date Exchange • CPS3 will Mandatorily Convert on
Slide 5: Comparison to other ASX listed ANZ Tier 1 hybrids
For personal use only Comparison to other ASX listed ANZ Tier 1 hybrids CPS3 CPS2 CPS1 ASX code • ANZPC • ANZPA • ANZPB Margin • Expected to be 3.10% to 3.30% p.a. • 3.10% p.a. • 2.50% p.a. Nature of • Frankable & preferred • Frankable & preferred • Same as for CPS2 dividends • Semi-annual floating
Slide 6: Key Features: Dividends
For personal use only CPS3 Key Features: Dividends Dividends • Preferred non-cumulative dividends based on a floating rate (180 Day BBSW) • Expected to be fully or substantially franked • If a Dividend is not franked or only partially franked, the cash Dividend will be increased to compensate holder
Slide 7: Key Features: Mandatory Conversion
For personal use only CPS3 Key Features: Mandatory Conversion Mandatory • On 1 September 2019, CPS3 will Mandatorily Convert into a variable number of Conversion ANZ Ordinary Shares at a 1.00% discount to the 20 day VWAP, subject to the Mandatory Conversion Conditions being satisfied, unless Exchang
Slide 8: Key Features: Common Equity Capital Trigger Event
For personal use only CPS3 Key Features: Common Equity Capital Trigger Event Common • ANZ’s Common Equity Capital Ratio is the ratio of Tier 1 Capital, excluding all Equity Residual Tier 1 Capital, to the risk weighted assets of the ANZ Level 2 Group, as Capital Ratio prescribed by APRA • The calcul
Slide 9: Key Features: Exchange
For personal use only CPS3 Key Features: Exchange Optional • ANZ may choose to Exchange all or some CPS3 on issue on 1 September Exchange Date 2017 and each Dividend Payment Date thereafter Regulatory, Tax • ANZ may choose to Exchange all or some CPS3 if a Regulatory Event or a or Acquisition Tax Ev
Slide 10: Common Equity Capital Ratio
For personal use only Common Equity Capital Ratio 10.0% • Key focus of Basel 3 reforms is to strengthen the 9.0% Common Equity (Core Tier 1) capital base for banks 8.0% • These reforms call for financial regulators to phase in an increase in the Common Equity Capital Ratio Common Equity 7.0% Capital
Slide 11: Key dates for the Offer
For personal use only Key dates for the Offer Date1 Lodgement of Initial Prospectus with ASIC 23 August 2011 Bookbuild to determine the Margin 30 August 2011 Announcement of Margin and lodgement of Replacement Prospectus with ASIC 31 August 2011 Opening Date 31 August 2011 Closing Date for ANZ Secur
Slide 12: Trading update for months to 30th June
For personal use only Trading update for 9 months to 30th June
Slide 13: ANZ released Q3 trading update on 19th August
For personal use only ANZ released Q3 trading update on 19th August Highlights: $m • YTD (9 months to end June) Underlying profit after tax1 up 16.1% pcp • YTD Deposit growth exceeded loan growth by $14b • Group margin (ex Markets) up 2bps from 1H11 • Provision coverage2 at June 11 strong at 2.06% K
Slide 14: Provisions down significantly and trending back to expected longer term averages
Provisions down significantly and trending back to expected longer term averages For personal use only Total Provision Charge Provision charge back to (IP charge by Division and total CP charge) expected loss levels A$m 1,098 722 660 328 Expected Range * * 3Q11 provision charge annualised 14
Slide 15: Key points from the ANZ Trading Update
Key points from the ANZ Trading Update released 19th For personal use only August for the 9 months to 30 June 2011 : ANZ has continued to execute its Super Regional Strategy and remains well placed for future opportunities In Australia, there was strong deposit growth, improving credit demand in the
Slide 16: Balance Sheet
For personal use only Balance Sheet
Slide 17: ANZ has a well diversified and improved funding profile
ANZ has a well diversified and improved funding profile that continues to strengthen despite volatile market conditions For personal use only Strong Funding Composition Minimal offshore short-term wholesale funding; Offshore CP accounts for <2% (~$8.6b) Short Term Wholesale Customer Funding Funding
Slide 18: Contact details
For personal use only Contact details Australia and New Zealand Banking Group Limited Rick Moscati, Group Treasurer Ph. 03 8654 5404 Steven Craig, Head of Group Capital Ph. 03 8654 5213 John Needham, Head of Structured Funding Ph. 03 8654 5373 David Goode, Head of Debt Investor Relations Ph. 03 8654
Australia and New Zealand Banking Group — Debt Investor Presentation (August 2011) on 6ix