Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (July 2013)
26 slides from Anz's debt investor presentation, Jul 2, 2013
Slide 1: ANZ Capital Notes Offer
For personal use only ANZ Capital Notes Offer AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 2 July 2013
Slide 2: Disclaimer
Disclaimer For personal use only Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) ("ANZ") is the issuer of the ANZ Capital Notes (“Notes") . A public offer of the Notes will be made by ANZ pursuant to a Prospectus under Part 6D.2 of the Corporations Act. A Prospectus has been lod
Slide 3: Offer Summary
Offer Summary For personal use only ● Offer by Australia and New Zealand Banking Group Limited (“ANZ”) of the ANZ Offer Capital Notes (“Notes”) ● Perpetual, subject to mandatory conversion into ANZ Ordinary Shares on Term 1 September 2023 or following a Trigger Event ● ANZ optional Exchange on 1 Sep
Slide 4: Distributions
Distributions For personal use only ● Non-cumulative based on a floating rate (180 Day BBSW) ● Expected to be fully or substantially franked ● If a Distribution is not franked or only partially franked, the cash amount of the Distribution will be increased to compensate holders for the unfranked por
Slide 5: Mandatory Conversion on a Mandatory Conversion Date
Mandatory Conversion on a Mandatory Conversion Date For personal use only • On 1 September 2023 (“Mandatory Conversion Date”), subject to satisfaction of the Mandatory Conversion Conditions, the Notes will mandatorily Convert into a variable number of ANZ Ordinary Shares at a 1% discount to the 20 d
Slide 6: Mandatory Conversion on a Trigger Event
Mandatory Conversion on a Trigger Event For personal use only Trigger Event • Includes either a Common Equity Capital or Non-Viability Trigger Event Common Equity • ANZ determines or APRA has notified ANZ in writing that it believes that ANZ‟s Capital Trigger Common Equity Capital Ratio is equal to
Slide 7: Optional Exchange & Mandatory Conversion on a Change of Control Event
Optional Exchange & Mandatory Conversion on a Change of Control Event For personal use only Optional • ANZ may choose to Exchange all or some Notes on issue on 1 September 2021 Exchange Date Regulatory or • ANZ may choose to Exchange all or some Notes if a Regulatory Event or a Tax Tax Event Event o
Slide 8: Comparison of ANZ Capital Notes to other ANZ instruments
Comparison of ANZ Capital Notes to other ANZ instruments For personal use only ANZ Capital Notes CPS3 ANZ Subordinated Notes ASX Code Expected to be ANZPD ANZPC ANZHA Perpetual, subject to Mandatory Perpetual, subject to Mandatory Term ~10.25 years1 Conversion after ~10 years Conversion after ~8 yea
Slide 9: Ranking of ANZ Capital Notes
Ranking of ANZ Capital Notes For personal use only Examples of existing ANZ obligations and Examples securities1 Higher ranking/ Liabilities in Australia in relation to protected earlier priority accounts under the Banking Act (generally, Liabilities preferred by savings accounts and term deposits)
Slide 10: Summary of certain events that may occur during the term of ANZ Capital Notes
Summary of certain events that may occur during the term of ANZ Capital Notes1 For personal use only Event When? Is APRA Do What value will In what form will that approval conditions a Holder receive value be provided to needed?2 apply? for each Note? Holders? On 1 September 2023 or the first Mandat
Slide 11: ANZ's Common Equity Capital Ratio
ANZ’s Common Equity Capital Ratio For personal use only • The Notes mandatorily Convert into ANZ Ordinary Common Equity Capital (CET1) Ratio1 Shares following a Common Equity Capital Trigger Event if ANZ‟s Common Equity Capital Ratio equals or is less than 5.125% • ANZ‟s Common Equity Capital Ratio
Slide 12: Trading prices of selected ANZ Hybrids compared to an adjusted ANZ Ordinary Share price
Trading prices of selected ANZ Hybrids compared to an adjusted ANZ Ordinary Share price For personal use only Trading Price (A$) 120 110 100 90 80 70 60 50 40 May 07 Sep 07 May 08 Sep 08 May 09 Sep 09 May 10 Sep 10 May 11 Sep 11 May 12 Sep 12 May 13 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 A
Slide 13: Key dates for the Offer
Key dates for the Offer1 For personal use only Lodgement of initial Prospectus with ASIC 2 July 2013 Bookbuild to determine the Margin 9 July 2013 Announcement of the Margin and lodgement of the replacement 10 July 2013 Prospectus with ASIC Opening Date 10 July 2013 Closing Date for ANZ Securityhold
Slide 14: 2013 Half Year Results
For personal use only 2013 Half Year Results (released 30 April 2013) ANZ Capital Notes Offer
Slide 15: Overview of 1H13 financial performance
Overview of 1H13 financial performance For personal use only 1H13 Growth vs Growth vs $M 2H12 1H12 Cash Profit 3,182 +8% +10% Operating Income 9,086 Flat +4% Expenses 4,034 -8% -2% Provisions 599 -13% +5% Statutory Net Profit After Tax 2,940 +7% +1% EPS (cents) 117 +7% +7% Dividend per Share (cents)
Slide 16: ANZ continues to diversify operating income by customer, product and geography
ANZ continues to diversify operating income by customer, product and geography For personal use only Operating Income Mix by Division (1H13) Operating Income Mix by Geography (1H13) Additional 4% of Network Transaction revenue1 sourced from APEA Banking Retail Asia Global Pacific Loans Asia Partners
Slide 17: Net Interest Margin drivers and volume trends
Net Interest Margin drivers and volume trends For personal use only Net Interest Income 1H13 v 2H12 Net Interest Margin Group Ex-Markets Australia Division flat Up 3 bps IIB Ex-Markets New Zealand Division Down 14 bps Down 10 bps 17
Slide 18: Productivity and cost management remains a key focus
Productivity and cost management remains a key focus For personal use only Cost to Income Ratio Operating Expense Growth 18
Slide 19: Credit quality in line with expectations
Credit quality in line with expectations For personal use only Credit Quality trends Provision Charge • The 1H13 Provision charge of $599m represents a 13% reduction HOH • This lower Provision charge driven by reduction in both new individual provisions and top-up provisions to existing impaireds •
Slide 20: Balance Sheet
For personal use only Balance Sheet ANZ Capital Notes Offer
Slide 21: Strongly capitalised under new Basel rules
Strongly capitalised under new Basel 3 rules For personal use only Capital levels are well positioned (CET1) Capital overview • ANZ remains at the upper end of global peer group under new B3 rules • Well placed in regards to capital targets and 2.5% Capital Conservation focused on driving capital ef
Slide 22: Continue to diversify balance sheet and increase proportion of customer funding
Continue to diversify balance sheet and increase proportion of customer funding For personal use only Customer Lending & Deposits by Geography Customer Lending1 movement 1H13 v 2H12 Customer Lending1 Customer Deposits $m Loan to Deposit Ratio Sep 2008 Mar 2013 442 171% 128% 428 413 350 344 Customer
Slide 23: Structural liquidity position strengthened
Structural liquidity position strengthened – driven by growth in customer funding and shortened asset tenor For personal use only Deposit growth has stabilised Shortened asset tenor 29% 19% 19% 20% 16% 19% 23% 26% Short Term Wholesale Customer Funding Liquid Assets Lending Funding Term Debt < 1 year
Slide 24: A sustainable term wholesale funding profile
A sustainable term wholesale funding profile1 For personal use only Issuance Maturities $b Indicative annual issuance volume Senior Unsecured Government Guaranteed Covered Bonds Subordinated Issuance since 1-Apr-13 1. As at 30 April 2013. Funding shown in year of issuance. Includes transactions with
Slide 25: Strong liquid asset position
Strong liquid asset position For personal use only Liquidity Portfolio Basel 3 Liquidity Rules 122 ● In January 2013, the Basel Committee 115 announced revised details on the Liquidity Coverage Ratio (“LCR”) including amendments 39 to the outflow assumptions 91 38 75 31 15 15 ● As a result of the sh
Slide 26: Contact details
Contact details For personal use only Australia and New Zealand Banking Group Limited Rick Moscati John Needham Steven Craig Group Treasurer Head of Capital & Structured Funding Head of Treasury Advisory Ph: 03 8654 5404 Ph. 02 8037 0670 Ph. 03 8654 5213 E: Rick.Moscati@anz.com E: John.Needham@anz.c
Australia and New Zealand Banking Group — Debt Investor Presentation (July 2013) on 6ix