Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — UBS Investor Conference May 2006
24 slides from Anz's conference presentation, May 19, 2006
Slide 1: www.anz.com
www.anz.com
Slide 2: ANZ is one of Australia’s “BIG FOUR” banks and New Zealand's largest banking group
ANZ is one of Australia’s “BIG FOUR” banks and New Zealand's largest banking group Snapshot * Established 1835 * Represented in 27 countries * Market capitalization ~ US$40b * Amongst the top 50 banks in the World by market capitalization; top 10 in Asia * #4 listed company in Australia * Largest co
Slide 3: A good first half for ANZ
A good first half for ANZ 1HO6 v 1HO5 Statutory profit 16% Cash* profit % 10% Cash’ profit before provisions 10% Cash* EPS % 10% Dividend 10% 2006 guidance Revenue Growth* 8% Y 7%-9% Expense Growth* 6% VY 5%-7%
Slide 4: ANZ’s specialist business model delivering results
ANZ’s specialist business model delivering results Retail Strong Divisional Revenue Product business Mortgages Banking ‘growth driving 1HO6" performance* Consumer Regional & Investments Banking Finance Rural ‘& Insurance Products Mortgages 21% Consumer Finance iat Small pasd ral 18% al Pacific Busin
Slide 5: Success in Personal due to an effective business system
Success in Personal due to an effective business system an Convenient Banking”
Slide 6: Strategy starts with clear segmentation
Strategy starts with clear segmentation Price Driven Service Driven Peni * ANZ brand for non-price-driven \ segments = | ANZ] . Use other brands ec: Prime for other f segments / «Defend share via = y price where necessary Emerging Prime Sub Prime Ou r-barnke
Slide 7: Customer insights led to “More Convenient Banking”
Customer insights led to “More Convenient Banking” Key Decision Factors for Customers. (importance out of 10) Low fees 35 Why should Branches convenient 8.2 apie nite Straightforward fees 8a cae - Staff engaged 8.0 ‘ee Access to ATMS 79 _ 6.0 Recommendation ANZ offering a/c 5.8 People increasingly “
Slide 8: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy Financial o Performance) —_ ~~ ff <j “More Convenient customers Banking” 7 \ Products & Brand i Distributioy Investment aN
Slide 9: We have invested in our employees and our culture...
We have invested in our employees and our culture... Significant investment in Delivering on our commitment employees, largely frontline to cultural change (% Personal employees completed “Breakout” program) 1,124 new employees (up 13%) 9,799 53% 8,675 | : 1HO4 1HO6 1HO4 1HO6
Slide 10: ...resulting in a highly engaged workforce
«resulting in a highly engaged workforce Dramatic shift in staff satisfaction jh levels of engagement (Cam J satisfied working at the ANZ?”) across the Personal Division 66% 100% 60% —Positive Responses — Negative Responses 80% Personal ANZ Group _ Banking CO Division Benchmark 40% Branch Manager en
Slide 11: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy Financial Performance, - aa “More Employeed Convenient Customer Hy Banking” _ 2N= cry
Slide 12: Specialization has delivered product and service excellence
Specialization has delivered product and service excellence "aA en catcoar Home Lender of the Year Low Doc Money Saver of the Year Premium Banking Package of the Year “People’s Choice” award + Money Minder of the year (Savings & Transactions Accounts) + Home Lender of the Year + Personal Banking Web
Slide 13: Expanding distribution to improve convenience
Expanding distribution to improve convenience New Branches and ATMs 11 Branches & 134 ATMs added during 1HO6 800 1,800 280. 1,650 1,500 760 1,350 740 1,200 229 1,050 700 900 Sep-04 Mar-05 Sep-05 Mar-06 mem Branches (LHS) —ATMs (RHS) Target: 80 new branches by 2007
Slide 14: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy Financial Performance/ ——__ \ ~~ ff <j “More Employees Convenient Customer Hy Banking” _ \ Products & Distributioy ANZ 14
Slide 15: “Proof points” starting to differentiate ANZ brand...
“Proof points” starting to differentiate ANZ brand... Call Centres open 24/7 More ATM locations in key areas 15
Slide 16: .. Which drives future acquisition and retention
.. Which drives future acquisition and retention Improved “Trial Intention” Lowest propensity to defect* (Day to Day Transaction Accounts*) % 8 50% 20 , 40% 15 ————— 30% 10 20% st 10% + Sep- Dec- Mar- Jun-O5 Sep- Dec: Mar Sep-02 Sep-03 Sep-04 Mar-O5 Sep-05 of Oe 08 De: 05 08 Anz —Bank 1 Bank2 = —Ban
Slide 17: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy Financial Performance —__ = / “More Employee: Convenient Banking” — 7 \ Products & Brand Distributioy Investment aN 2N= 7
Slide 18: Overall customer satisfaction
Overall customer satisfaction (Main Financial Institution*) Highest customer satisfaction of any major bank... 18 90-2 so-des so-eW v0-des, 0-2 €0-des 0-2 zo-des zo-1eW to-des —Peer Banks To-1eW 00-das, 00-120 66-des —aANz 66-2 96-des, 96-2 £6-das 46-12 | 96-das
Slide 19: ...leading to higher share of wallet and market share
+ leading to higher share of wallet and market share Share of wallet Market Share Gap (traditional banking products*) Tight peer Lali 8.1% =“ 2.4% (obs) 44% 3.1% 2.5% 1.2% \/ earn 14.3% 14.2% 49. 132% 12.6% 11.4) 1118 10.74 iil | Peer Ave. Mar-03 Mar-04 Mar-05 Feb-06 Nanos mFeb-08 ANZ m# 2 peer So 1
Slide 20: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy » 3 “More Employees Convenient Customer Hy Banking” _ [. v4 \ 20
Slide 21: Non price led strategy delivering attractive growth...
Non price led strategy delivering attractive growth... FUM Growth* (%) Note - size indicates Net Interest Income contribution of net growth (i.e. growth (A$b) x margin) Retail Deposits — FUM Growth v Margin 7% 6% Peer 4 5% " o a Peer 3 r 3% 2% 1% 0% + 0.00% 0.20% 0.40% = 0.60% += 0.80% —«1.00% += 1.
Slide 22: ...resulting in sustainable revenue and profit growth
«resulting in sustainable revenue and profit growth Revenue/Cost ‘Jaws’ widening Strong profit momentum (pcp) 11.5% ry 3 15.9% 5 12.4% AE 7% 1HOS, 2HOS 1H06 HOS 2HOS 1HO6 Income Growth m Expense Growth 22 PRE sercismnmawmsenescs
Slide 23: Summary
Summary © No “silver bullet” explains ANZ’s Retail Banking success * Our business system is delivering strong, sustainable growth « We will continue to invest in “More Convenient Banking” « Lots more upside in customer #s, wallet share, and efficiency 23
Slide 24: Searchable text section of graphics shown above
Searchable text section of graphics shown above [GRAPHIC] UBS Investor Conference Australia and New Zealand Banking Group Limited May 2006 Brian Hartzer Group MD Personal www.anz.com [LOGO] ANZ is one of Australia’s “BIG FOUR” banks and New Zealand’s largest banking group [GRAPHIC] Snapshot • Establ
Australia and New Zealand Banking Group — UBS Investor Conference May 2006 on 6ix