Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — UBS Conference 2004
17 slides from Anz's conference presentation, Jun 23, 2004
Slide 1: UBS Conference - Critical Success Drivers
UBS Conference - Critical Success Drivers Australia and New Zealand Banking Group Limited June 2004 Dr Bob Edgar Chief Operating Officer
Slide 2: A solid performance in the first half...
A solid performance in the first half... v Mar 03 v Sept 03 NPAT *Headline $1,396m T 22% T 16% *Excluding significant transactions $1,312m T 15% T 9% *Underlying excl NBNZ3 $1,241m tT 10% T 4% EPS 76.8 cents {ff 11% fT 5% Cash EPS! 78.9 cents {ff 11% fT 5% Dividend fully franked2 47cents ff 11% fT n
Slide 3: ..across most divisions...
..across most divisions... Division Consumer Institutional Corporate New Zealand Other PCP Growth $8im TT 23% Key Drivers Underlying profit up 15%: Australia distribution up 13% Mortgages flat - 22% asset growth offset by rising rate basis squeeze and wholesale funding costs Consumer Finance up 116%
Slide 4: ..continuing an enviable track record
..continuing an enviable track record $m NPAT* 1,500 4 Consolidation -500 4 | -1,000 - * before abnormal items and significant transactions
Slide 5: The key long term success drivers include an engaged workforce...
The key long term success drivers include an engaged workforce... Staff Satisfaction 78 62 60 - 58 50 50 4 40 4 30 4 20 1999 2000 2001 2002 2003 Feb-04
Slide 6: ..and sustained investment in the business
..and sustained investment in the business Following efficiency drive, ANZ has already moved to investment phase Expen rowth — r Moving Aver 5.9% In 2002, we set a target of at least 2% expense growth per half g 4.4% 4.0% ra OP o Li Bis LILLIE VW DEIED VELLA VPP LSD LLL 3.5% 2.9% 0.3% 2 WI 7 . r : a
Slide 7: Helped by an attractive high growth, low risk market
Helped by an attractive high growth, low risk market High Return Low Risk * Australia and NZ have had high growth * The New Zealand banking market compared to other developed markets has a lower credit risk history Average Real GDP Growth Doubtful debts expense/ Average (1993-2003)* Loans and Advanc
Slide 8: Some specific drivers of success
Some specific drivers of success ‘, Consumer Banking - building a strong position New Zealand - delivering a successful integration Corporate/SME - continuing to invest & grow Institutional - risk profile transformed, return to growth
Slide 9: Building a strong position in the low fade domestic consumer market
Building a strong position in the low fade domestic consumer market Retail Market Share in Australia & New Zealand” We now have a combined 0 . retail customer base across 18.7 Australia & New Zealand of 18 4 approximately 5.1m customers 1¢4 15:7 15.5 e We have a scale | NBNZ position 14 4 impact 12.
Slide 10: We have already started to deliver good performance
We have already started to deliver good performance Consumer NPAT growth Deposit volume growth on superior to peers (1H04 v 1H03) par with peers (1H04 v 1H03) 11% 10% 6% WBC SGB ANZ WBC SGB Customer satisfaction at top of ANZ mortgage FUM growth major peer group superior to peers (1H04 v 1H03) 68.0%
Slide 11: NBNZ integration is focused on creating the leading bank in New Zealand
NBNZ integration is focused on creating the leading bank in New Zealand Three key reasons for mergers not succeeding Failu: find the rig rtner This is our key focus mie Source: A.T. Kearney Global PMI Survey (1998) it We have found the right partner at an attractive price Post merger management is o
Slide 12: NZ market share — long term goal to grow share, but may be some adverse impact in short term
NZ market share — long term goal to grow share, but may be some adverse impact in short term e Although customer attrition built into business case, customer numbers have actually grown since date of acquisition ¢ NZ GDS reports for March provide mixed evidence regarding market share of lending Cred
Slide 13: Corporate & SME — continuing to invest and grow
Corporate & SME — continuing to invest and grow Corporate & SME Lending Growth up 20% up 16% up 24% Mar-03 ma SME Mar-04 & Corporate nw Average security cover ~99%, with ~81% of customers fully secured 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 13 Investing heavily in the business including footprint expans
Slide 14: IFS risk profile transformed, at a cost to profit growth
IFS risk profile transformed, at a cost to profit growth NPAT composition shifted towards less volatile and more sustainable earnings Sep-01 Mar-04 Bi Corp & Struc Fin §1Cap Mkts (FX Hi Trade & Transactions la Institutional 14 IFS Offshore assets as % of Group im, assets substantially reduced Oe 0%
Slide 15: After six years of risk reduction we are now approaching optimal levels
After six years of risk reduction we are now approaching optimal levels Trading Value at Risk* oo oe co ~~ oe oo ) 7 & Co cc oo. . | ee LL . - - . . e Lo i CS _ __ _ - _ — - a : _ . . Ll L / L ss. _ *excludes significant and abnormal items # Average daily Value at Risk at 97.5% confidence interval 1
Slide 16: Focus on critical success drivers has delivered a solid result and good prospects
Focus on critical success drivers has delivered a prospects solid result and good e A solid first half, building on a strong track record e Consistent focus on risk reduction and sustainability has created: # more domestically focussed portfolio # a more sustainable business mix, with higher proport
Slide 17: The material in this presentation is general background information about the Bank's activities
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 form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and
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