Slide 1: Maintaining the Momentum
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Slide 2: A quick recap on the first half
A quick recap on the first half Business Unit Mar 07 v Mar 06 NPAT* ($m) Mortgages 191 Banking Products 182 Consumer Finance Regi |, Rural egional, Rura Contribution to Personal Division NPAT 5% 3% 61 y . 27% Small Business Banking Esanda Pacific 20% 25% “| Mortgages ank Products l™@ Con. Fin @ Rura
Slide 3: An effective business system
An effective business system “More Convenient Banking” Sustainable organic growth ud
Slide 4: Customer research led to "Convenience and Simplicity"
Customer research led to “Convenience and Simplicity” Clear segmentation Why should customers bank with ANZ (and not somebody else) ?? Price Driven Service Driven he f He Premium Low Fees Branches Prime* convenient Straightforward fees Staff engaged Emerging Prime Access to ATMs Sub Prime Un-banked
Slide 5: Combined with an engaged and committed workforce...
Combined with an engaged and committed workforce... Dramatic shift in staff Personal division staff remain satisfaction highly engaged (“am I satisfied working at the ANZ?”) 100% 7 ~ume Positive Responses =—— Negative Responses O/, 4 80% 88% 60% 60% 60% 7 57% 40% 7 20% 20% 7 7, j oo a : Personal ANZ
Slide 6: Has made ANZ the leader in Customer Satisfaction...
Has made ANZ the leader in Customer Satisfaction... Highest Customer Satisfaction of the majors incl. St George (Main Financial Institution”) % 50 T \ T T T T T T T T T T T ° band d N N al isa) t vt ny in 0 ive) N eo ¢ §@ © $ ¢ 8 & & ¢ $ F 8 8 2 is 2 5 2 6 2 oS 2 5 2 i 2 & 8 = #8 = H8 = H = HF EF H
Slide 7: ..and delivered rewards for shareholders
..and delivered rewards for shareholders Personal division profit growth NPAT benefiting from 3% reduction in provisioning 22% 16% 7% FY04 FYO5 FY06 et PBP m NPAT ~
Slide 8: Our Business System generates sustainable organic growth
Our Business System generates sustainable organic growth “More Convenient Banking” Pint a 2 ie i 8 ine
Slide 9: Customer acquisition is the basis for future growth
Customer acquisition is the basis for future growth Strong brand - “More Convenient Banking” Simple, market leading products Expanded distribution (branches, ATMs, Internet) Strong local marketing and sales disciplines Customer Satisfaction Length of Relationship Sales Training and Incentives Sales
Slide 10: Acquisition: A strong track record, but "traditional account" growth may slow as competitors improve
Acquisition: A strong track record, but “traditional account” growth may slow as competitors improve Strong Brands A Mp fn Axe More Convenient Banking 2° direct. EY TRADE AUSTRALIA hore loans Expanded distribution Total Accounts opened 350,000 2H06 benefited from. Visa Debit Card introduction 300,00
Slide 11: High growth in customer numbers creates opportunity...
High growth in customer numbers creates opportunity... Number 2 in customer numbers... (Traditional Banking customer share*) .. but not yet #2 in overall share (Traditional Banking Market share*) 22% 9 Peer 1:°38.9% (Apr 07) 21% 19% + 19% 4 17% 15% 16% 7" a 13% 11% 13% 7 9% [oat 7% 10% T T T 5% T T
Slide 12: Cross-sell: Well placed to grow our share of wallet
Cross-sell: Well placed to grow our share of wallet Age of accounts drives cross sell... ..as does customer satisfaction (FUM change for new customers over time Month 1 index = 100) Likelihood of buying new products Index 100% 7 350 4 300 4 80% 7 69% 250 4 60% 7 200 + 150 4 40% 7 100 4 20% + 50 4 04
Slide 13: Attrition: Minimise through satisfied customers and effective complaint resolution
Attrition: Minimise through satisfied customers and effective complaint resolution High customer satisfaction... ..and effective complaint resolution 99% of ANZ complaints responded to in 48 hours, 90% resolved in 48 hours _ Likelihood of retaining customers - Didn’t experience an issue 100% 4 96% E
Slide 14: Cost to serve: We have front-ended growth investments; efficiencies will help sustain future investment
Cost to serve: We have front-ended growth investments; efficiencies will help sustain future investment Investing in growth ahead of the pack Expense Growth ~ Personal Division Mar 06 v 2006 v Mar 07 v Mar 05 2005 Mar 06 %o a On A AwDO > 49 new branches > 860 new ATMs since 2004 > ~1,200 additional
Slide 15: Transformation an increasing priority
Transformation an increasing priority Lean/Six Sigma methodology adopted to develop more efficient work flows, minimising double handling and inefficient processes 240 people trained in Lean/Six Sigma methodology in the Personal Division in the last 12 months (700 in ANZ overall) 69 projects underwa
Slide 16: Summary
Summary Retail banking remains an attractive business e Clear strategy and integrated business system will help drive sustainable organic growth e Strong brand, highly satisfied customers, and highly engaged staff are hard to replicate e Continued investment, increasingly self funded, should deliver
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