Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (February 2023)
33 slides from Anz's debt investor presentation, Feb 15, 2023
Slide 1: ANZ Capital Notes 8 Offer Investor Presentation
For personal use only ANZ CAPITAL NOTES 8 OFFER INVESTOR PRESENTATION 15 FEBRUARY 2023 Approved for distribution by ANZ’s Continuous Disclosure Committee Australia and New Zealand Banking Group Limited 9/833 Collins Street Docklands Victoria 3008 Australia ABN 11 005 357 522
Slide 2: Disclaimer
ANZ Capital Notes 8 DISCLAIMER This presentation has been prepared by Australia and New Zealand Banking Group Limited (ABN 11 005 357 522)("ANZ") in connection with the offer ("Offer") of ANZ Capital Notes 8 ("ANZ Capital Notes 8” or "Notes"). The Offer is being made under a prospectus ("Prospectus"
Slide 3: Contents
= e ©) @ 7) 3 © = e) D) — o) roe = ©) LL CONTENTS Offer Summary FY22 Results and Q1 23 Update Appendix 1- Key Terms Appendix 2 - Key Dates And Contacts 22 29
Slide 4: Offer Summary
For personal use only ANZ CAPITAL NOTES 8 OFFER SUMMARY
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Slide 6: Notes convertible into ordinary shares of the ANZ NOHC
ANZ Capital Notes 8 NOTES CONVERTIBLE INTO ORDINARY SHARES OF THE ANZ NOHC FOLLOWING A RESTRUCTURE OF ANZ, ON CONVERSION, HOLDERS WILL RECEIVE LISTED ORDINARY SHARES OF ANZ HOLDINGS AS THE NON-OPERATING HOLDING COMPANY OF THE ANZ GROUP (ANZ NOHC) ANZ NOHC Shareholders Prudential Regulation APRA adop
Slide 7: Summary of optional exchange dates and exchange options
For personal use only ANZ Capital Notes 8 SUMMARY OF OPTIONAL EXCHANGE DATES AND EXCHANGE OPTIONS The diagram below summarises certain events that may occur while the ANZ Capital Notes 8 are on issue, and what Holders may receive if those events occur. The events depend ona number of factors includi
Slide 8: Comparison to other ANZ Capital Notes
For personal use only ANZ Capital Notes 8 COMPARISON TO OTHER ANZ CAPITAL NOTES REINVESTMENT OF CN3 INTO NOTES IS NOT A SIMPLE ROLLOVER INTO A SIMILAR INVESTMENT. THE NOTES AND CN3 HAVE DIFFERENT RIGHTS, BENEFITS AND RISKS WHICH MUST BE EVALUATED SEPARATELY ANZ Capital Notes 8 ANZ Capital Notes 7 AN
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Slide 11: FY22 Results and Q1 Update
For personal use only ANZ CAPITAL NOTES 8 FY22 RESULTS AND Q1 23 UPDATE
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Slide 13: FY22 Group Financial Results
ANZ Capital Notes 8 FY22 GROUP FINANCIAL RESULTS FY22 vs FY21 Statutory profit, $ million 7,119 +16% Cash profit (continuing operations)', $ million 6,515 +5% Return on equity’, % 10.4 +47bps Earnings per share - basic’, cents 228.8 +6% Dividend per share — fully franked, cents 146 +4 cents APRA Lev
Slide 14: Balance Sheet Structure
ANZ Capital Notes 8 BALANCE SHEET STRUCTURE! NSFR movement, % Pro forma NSFR is ~116% Balance sheet composition, Sep 22 once RSF benefit associated with TFF and CLF? is removed 24 oe | { 04 1.0 05 119.1 67 — aa a2 Liquid and Other Assets Sep21 Retail/ Loans CLF?_—Capital& ~LTDebt FI/Bank Other? Sep
Slide 15: Regulatory Capital
ANZ Capital Notes 8 REGULATORY CAPITAL Capital Ratios Level 2 CET1 capital ratio 12.3 11.5 12.3 Level 2 CET1 HoH mvmt -10 bps -81 bps +76 bps Additional Tier 1 capital ratio 2.0 17 17 Tier 1 capital ratio 14.3 13.2 14.0 Tier 2 capital ratio 41 3.4 42 Total regulatory capital ratio 18.4 16.6 18.2 Lev
Slide 16: Capital
For personal use only ANZ Capital Notes 8 CAPITAL! APRA Level 2 CET1 ratio - 1Q23 capital movement & 0.2 123 a ro 02 De 0.4 ANZ adopted Operational Risk SMA methodology from Dec 22 (part of the APRA capital reform program). The remaining impacts of capital reform will take effect post Dec 22 12.2 ~1
Slide 17: Regulatory Capital
For personal use only ANZ Capital Notes 8 REGULATORY CAPITAL INCLUDING THE ANZ LEVEL 2 GROUP’S SEPTEMBER 2022 AND DECEMBER 2022 CAPITAL RATIOS WITH PRO FORMA ADJUSTMENTS FOR THE CN3 REDEMPTION AND ISSUE OF $1BN OF NOTES ised consolidated capital adequacy ratios as at 31 December 2022 ANZ ANZ Proform
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Slide 19: AT1 Distributions and Conversion Trigger Protection
ANZ Capital Notes 8 AT1 DISTRIBUTIONS AND CONVERSION TRIGGER PROTECTION ANZ’S CET1 CAPITAL POSITION AND STRONG EARNINGS PROVIDE BUFFERS FOR AT1 INVESTORS CET1 Capital & Combined Capital Buffer (post Capital Reform)! Maximum Management Distributable Buffer ‘Amount (MDA) 10.25% Combined Capital Buffer
Slide 20: AT1 Distribution Protections
ANZ Capital Notes 8 AT1 DISTRIBUTION PROTECTIONS ANZ’S CET1 CAPITAL POSITION AND STRONG EARNINGS PROVIDE BUFFERS FOR AT1 INVESTORS + AT1 distributions may be progressively restricted if ANZ’s CET1 capital ratio drops to or below APRA’s minimum capital requirement plus prescribed regulatory capital b
Slide 21: Consistent Approach to AT1 Issuance: Size and Maturities
ANZ Capital Notes 8 CONSISTENT APPROACH TO AT1 ISSUANCE: SIZE AND MATURITIES SS ANZ's near term AT1 requirements primarily driven by its scheduled maturity profile: ANZ's disciplined approach to AT1 issuance has resulted in: Cc * ATI currently on issue exceeds requirements + A first call date struct
Slide 22: Past Performance of ANZ Securities
ANZ Capital Notes 8 PAST PERFORMANCE OF ANZ SECURITIES AVERAGE TRADING PRICES OF SELECTED ANZ CAPITAL SECURITIES COMPARED TO AN ADJUSTED ANZ ORDINARY SHARE PRICE! Trading Price, $ 140 40 2007 2008 «= 2009S 2010S 2011S 2012S «2013S 2014S 2015. 2016 = 2017S 2018_~=S 2019S 2020S 2021.» 2022-2023 ——ANZ
Slide 23: Appendix 1: Key Terms
For personal use only ANZ CAPITAL NOTES 8 APPENDIX 1: KEY TERMS
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Slide 26: Key Terms: Mandatory Conversion Date
For personal use only ANZ Capital Notes 8 KEY TERMS: MANDATORY CONVERSION DATE Mandatory Mandatory Conditions Intention of Mandatory Conversion Conditions Deferral of Conversion ‘On 20 September 2032 (Mandatory Conversion Date), subject to satisfaction of the Mandatory Conversion Conditions, the Not
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Slide 29: Key Terms: What Happens Post a Trigger Event
ANZ Capital Notes 8 KEY TERMS: WHAT HAPPENS POST A TRIGGER EVENT A Common Equity Capital Trigger Event or Non-Viability Trigger Event occurs ANZ Holdings Ordinary Shares can be issued? —i— Written off up to required amount of CET1! Notes Convert to ANZ Holdings Ordinary Shares up to required amount
Slide 30: Appendix 2: Key Dates and Contacts
For personal use only ANZ CAPITAL NOTES 8 APPENDIX 2: KEY DATES AND CONTACTS
Slide 31: Key Dates
ANZ Capital Notes 8 Record Date for determining Eligible CN3 Holders for the Reinvestment Offer (relevant CN3 must also be held on the Closing Date for the Reinvestment Offer) 7:00pm on 10 February 2023 1. The key dates for the Offer are indicative only and may change without notice. Dates may be su
Slide 32: Key Dates: CN3 Holders
For personal use only ANZ.Capital Notes 8 KEY DATES: CN3 HOLDERS' 1 2. Redemption notice given in respect of CN3 15 February 2023 Record date for the Final CN3 Distribution 7.00pm on 10 March 2023 Payment date for CN3 Redemption Price 24 March 2023 The key dates for the Offer are indicative only and
Slide 33: Key Contacts
ANZ Capital Notes 8 KEY CONTACTS ANZ Group Treasury Group Treasurer Head of Capital & Structured Funding Head of Group Funding Senior Manager, Capital Management Joint Lead Managers ANZ Securities CBA E&P Corporate Advisory Morgan Stanley Morgans Ord Minnett Shaw and Partners UBS Westpac Adrian Went
Australia and New Zealand Banking Group — Debt Investor Presentation (February 2023) on 6ix