Anz Group Holdings Limited · ASX:ANZ
Anz — Investor Presentation (March 2006)
38 slides from Anz's investor presentation, Mar 6, 2006
Slide 1: John Winders, Executive Vice President & Director PT Panin Bank
lt a) ene, Ny Mii? oe : aninBank John Winders Executive Vice President & Director PT Panin Bank Jakarta 6 March 2006 M Pp : anin nin COR in KSC - Ain *| PaninBank Padi BARK,
Slide 2: ANZ holds equity stakes in PT Panin Bank and ANZ Panin
ANZ holds equity stakes in PT Panin Bank and ANZ Panin Ownership Structure Gunawan Family Public Interests - ANZBank 29% PT Panin Bank 85% iui 4 re¢ Cu aahiiiall ¢ PT Panin Bank includes full service banking model in corporate, SME and consumer customer segments e ANZ Panin includes ANZ’'s Indonesia
Slide 3: ANZ's investment in PT Panin continues to add value
ANZ’s investment in PT Panin continues to add value e ANZ acquired a 29% minority stake in Panin Bank through e 11% purchased and an option agreement over an additional 18% in 1998/99 e ANZ’s primary roles include ¢ Assisting strategy e Facilitation and development of PT Panin’s internal capabilitie
Slide 4: PT Panin Bank is Indonesia's 8th largest bank by assets
PT Panin Bank is Indonesia’s 8" largest bank by assets 8th largest overall and 5% largest among non- government banks (total Assets 31/12/05*) 8th ¢ ] 7 a o wo P INHND BCA NBNI ry ° ry ° ry ° %. Combined assets of remaining 117 small banks is 280 trillion * As reported in Bisnis Indonesia 28/2/06- b
Slide 5: Panin's network continues to expand with more than branches and 9,500 ATMs
Panin’s network continues to expand with more than 200 branches and 9,500 ATMs Medan t>qaal Batam [p>(iel MA 4 citibank 1 ane. ; i Panin 10 - Connection to Bersama and . Parin 4 q Alto ATM networks provide " Panin customers with access a =. to 9,500 ATMs Pann2 % “ j Pann 1 Jakarta & Bogor > 7 citiba
Slide 6: Panin is a fast growing, mid-sized bank focusing on SME and more affluent consumers
Panin is a fast growing, mid-sized bank focusing on SME and more affluent consumers Strong lending growth IDR (Tn) 40 30 20 2003 2004 2005 (f) 70 new branches & access to 9,500 ATMs ce 2003 Branches Panin ATMs #2003 62004 2005 Retail Deposits growing strongly IDR (Tn) (Savings, current & time deposi
Slide 7: Strong growth in Panin Consumer & SME businesses offset by NIM pressure
Strong growth in Panin Consumer & SME businesses offset by NIM pressure and franchise investment Solid underlying (IDR Bn) revenue growth Underlying profit growth impacted 2,500 by franchise investment 2,000 {IDR Bn) 1,500 700 4 1,000 500 600 4 ot 1 FYO3 FY04 FYOS(f) ia Underlying Revenue fi One-off
Slide 8: Similar to ANZ, Panin has transformed its business mix towards consumer and SME
Similar to ANZ, Panin has transformed its business mix towards consumer and SME A significant shift in business mix (% lending assets) 2001 2002 2003 2004 Corporate i Consumer & SME Housing Loans IDR Tn 2002 2003 2004 2005 (f) Motor Vehicle Loans IDR Tn 0.8 2002 2003 2004 2005 (f) SME Loans 2003 200
Slide 9: Panin maintains conservative approach to risk; NPL spike in 3Q05
Panin maintains conservative approach to risk. Changes to Bank Indonesia policy caused temporary spike in NPLs in 3Q05 Total Loans IDR 15tn Current 3.1tn* NPL 0.6tn (9.37%) Current 3.65tn NPL 0.05tn (1.35%) Current 4.6tn Past due < 90 , days 0.3tn NPL 1,393 656 848 794 NPL (%) 9.1 4.91 7.71 9.6 Prov
Slide 10: Panin's growth is driven by investment in products and distribution
Panin’s growth is driven by investment in products and distribution, and leveraging ANZ’s capabilities Free customer Free customer access to 3,000 access to 9,800 linked ATMs linked ATMs Branch Redesign Phone in Establishment of Banking | wn nh SMART centres Establishment of National Call Centre Nat
Slide 11: Summary
Summary e Panin Bank’s underlying profit growth is strong e The partnership continues to add value to ANZ with market value well in excess of book e 2006 performance adversely impacted by increased interest rate environment e Success of Panin partnership underlies ANZ model > transformation of busin
Slide 12: Additional Information
Additional Information *| PaninBank
Slide 13: Panin has established itself as a leading player in motor vehicle finance
ae Panin has established itself as a leading player in the motor vehicle finance business e Panin now operating 23 car loan centres across 15 cities. ¢ Car loan sales management operated through specialised business unit and specialists co-located with dealers ¢ Credit decisions retained by local br
Slide 14: Good momentum in home loans, despite increased competition
increased competition are Good momentum in home loans, despite 1.05 2002 2003 2004 2005 uae Loans (LHS) <i Customers « 57% growth in outstandings in 2005, excellent result in view of downturn following interest rate rises in Sept-05 ¢ Market growth has slowed, however beginning to show signs of reco
Slide 15: SME growing strongly following increased focus
SMA SME growing strongly following increased focus — key medium term growth engine IDR Tn # e Until 2005 had received little attention. 3.0 7 ¢ Jan 2005 - dedicated SME lending 254 director appointed. Total balances have grown 122% since specialist model introduced e Panin now operating 20 ‘SMART’ c
Slide 16: Panin Bank and the Indonesian Reksa/bond market
Panin Bank and the Indonesian Reksa/bond market e The “Reksa Product” is a mutual fund type investment typically invested in domestic government bonds. Customers were attracted to the investment because of its higher yield. IDR Tn 120 100 80 60 40 20 ie) Indonesian mutual funds: net asset value Dec
Slide 17: ANZ's equity accounted profit is impacted by a number of variables
ANZ’s equity accounted profit is impacted by a number of variables Amount reported by ANZ as equity accounted profit impacted by: Solid underlying NPAT growth (ANZ equity accounted profits A$m) e ANZ records share of income from Panin on a 3 month lagged basis due to market sensitivity. e Exchange r
Slide 18: Strong balance sheet growth, good growth in consumer lending
Strong balance sheet growth, good growth in consumer lending Assets Liabilities 35.7tn 35.7tn Cash/BI Equity > Other > Bond/Sec Bonds —» For Curr >» IDRTD >» Corp SME Consumer IDR Saving > IDR DDA >. 2004 2005 * Collapse of mutual fund market in ‘05 saw bonds returned to banks. *IDR money market dep
Slide 19: Indonesia's banking sector has recovered strongly
Indonesia’s banking sector has recovered strongly = Strong capitalisation, liquidity, asset quality, all likely to Loan Growth 2005E improve further as economy strengthens 20% * Under-penetrated banking sector: =" Loans/GDP at 25% amongst lowest globally = Consumer Loans/GDP at ~10% amongst Asia’s l
Slide 20: Bank Indonesia blue-print signals further wave of consolidation
Bank Indonesia blue-print signals further wave of consolidation PaninBank ¢ Min. capital >IDR50Tn « Capacity to operate in international scale * Capital requirement: IDR10-50Tn ¢ Offers wide range of business and nationwide coverage * Capital requirement: IDR100Bn-10Tn * Focus on particular business
Slide 21: a Ls CE oe os A — — =o Se ee So a :
a Ls CE oe os A — — =o Se ee So a : Ce . Se Ce i a errr ccc rc rc rc crc crc c rrr cc rr Ce rrrrrmr—r—“ errr rc cr cr rc rc crc cL CO rrrrr™rm—™r—m™r—™r—™r—™r—™—r—™r——™——™r—r——L—UC“E™ I
Slide 22: Information Flow
Information Flow | 1. ANZ Panin Today | i i i 2. About ANZ Panin 3. Product & Service 4. ANZ Credit Cards Lad. The Synergy 1.2. Custorner Perception . Our Growth . Recognition . Cards 1. Corporate Banking; 3.2. Treasury & Market . Trade Finance; 3.4. Retail Personal Banking 1. Focus . Customer Exper
Slide 23: Look & Feel
Look & Feel Opening Look ANZ Panin Bank Today About ANZ Panin ra AME AME AMZ Product & Service ANZ Credit Cards ANE ANE
Slide 24: Content Details
Content Details Be, gle
Slide 25: 1. ANZ Panin Today — 1.1. The Synergy
1. ANZ Panin Today — 1.1. The Synergy « ANZ Panin Bank « One of the largest JV Bank in Indonesia in term of customers and profitability ratios. = 157 full time staff, 350 foreign awned company accounts, 320 Indonesian caormpany accounts, nearly 306,006 individual customers. = As of 30 Sept 65, total
Slide 26: 1. ANZ Panin Today — 1.1. The Synergy (Cont.)
1. ANZ Panin Today —- 1.1. The Synergy (Cont.) e Perfect synergy combining ANZ as one of the largest bank in Australia with glabal network in Europe, America, Asia/Pacific, and Panin Bank with strong local knowledge.
Slide 27: 1. ANZ Panin Today — 1.2. Customer Perception
1. ANZ Panin Today — 1.2. Customer Perception « Bank with “Human Face” « Offer products by focusing on modern lifestyle. * Innovative and trendy look of collaterals, promotion media. e Customer opinion about ANZ Panin. To support the idea of dynamic and contemporary look with young feel (based on AC
Slide 28: 1. ANZ Panin Today — 1.3. Our Growth
1. ANZ Panin Today — 1.3. Our Growth e Qur Focus « Bullding a premium credit card business. « Supporting multinationals network in Indonesia. « Identify Indonesian opportunities for ANZ product specialists and provide ongoing support in deal structuring. « Deepen industry focus in natural resources
Slide 29: 1. ANZ Panin Today — 1.3. Our Growth (Cont.)
1. ANZ Panin Today — 1.3. Our Growth (Cont. ) e With strong focus, ANZ Panin has shown excellent performance. %: 20.6% 17.8% « Cost to Income ratio: 42.8% « Strong CAR: 21.4% for further expansion « Increasing number of customers, loan and NPAT. Loan NPAT No. of Customers 336,000 14000 300,000 12000
Slide 30: 2. About ANZ Panin — 2.1. History
2. About ANZ Panin — 2.1. History e 1973, ANZ Grindlays Bank established a representative office In Jakarta. e 1993, ANZ purchased Westpac stake in the joint venture Bank with Panin Bank and established PT ANZ Panin Bank. e 1999, to expand its retail sector, ANZ Panin Bank acquired cards portfolio o
Slide 31: 2. About ANZ Panin — 2.2. Recognition
2. About ANZ Panin — 2.2. Recognition « Business Week Magazine (August 2005): Indonesia’s most admired company. * Infobank Magazine (June 2005): Bank with the most focused activities in a specific business sector. « Infobank Magazine Gune 2005}: Voted top 10 bank in Indonesia. « SWA Magazine (May 20
Slide 32: 3. Product & Service
3. Product & Service Trade Finance Pravide products such as: « Bark guarantee (eg. custom band, bid boned, performance bored), « Import (eg. Opening LG Locat LC, Import Tax Payment, Shipping Guarantee). « Export (eg. Advising and negotiation Letter of Credit, Discourrtedt Bilfs). * Collection (eg. C
Slide 33: 4. ANZ Panin Credit Cards — 4.1. Focus
4, ANZ Panin Credit Cards — 4.1. Focus « Credit card is retail focus of ANZ Panin sic, Type of cards offered: cla gold, platinum. e ANZ owns 70% of the platinum market share. « ANZ Platinum is the 18* Platinum card that invites public to apply. My Style My Styte My Way My Way My ANZ Platinum i) My A
Slide 34: 4. ANZ Credit Cards - 4.2. Customer Experience
4, ANZ Credit Cards - 4.2. Customer Experience « Dynamic and contemporary look. « Unique card design that represent style, character and personality of the Cardholders (Picture Card). = Cardholders can choose fram 9 pre-selected pictures. ae « or they can submit thelr own pictures.
Slide 35: 4. ANZ Credit Cards — 4.2. Customer Experience
4, ANZ Credit Cards — 4.2. Customer Experience *« Focusing on modern lifestyle and experiler ne for Cardholders when using the card. * Cooperates with international partners providing talk-of-the-town events that gives values to the Cardholders. 1% Broadway show in Holiday On Ice Disney 1 Room Nicke
Slide 36: 4. ANZ Credit Cards — 4.3. Strategic Partnership
4, ANZ Credit Cards — 4.3. Strategic Partnership e Building brand association with 28 international boutiques providing interest free installment and other privileges. Cartier w&en VERTU VERSACE BALLY BOSS j]iAL atestont "Pum RAR Ms . rn, a | a aa m4 GF FERRE COCCINELLE FRANCESCOBIASIA ROCOCO charle
Slide 37: 4. ANZ Credit Cards - 4.3. Strategic Partnership
4, ANZ Credit Cards - 4.3. Strategic Partnership e Through ANZ Spot ~ I Love This Spot, building brand association with more than 200 restaurant/café partners providing year-long benefits in form of discounts and complimentary. Partners located throughout Indonesia, such as Jakarta, Ball, Surabaya.
Slide 38: The material in this presentation is general background Information about the Bank’s
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 farm and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and
ANZ Group Holdings — Investor Presentation (March 2006) on 6ix