Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Non-Deal Roadshow (July 2014)
76 slides from Anz's roadshow presentation, Jul 24, 2014
Slide 1: ANZ Asia Investor Tour 2014
ANZ ASIA INVESTOR TOUR 2014 AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 24 JULY 2014 SANJOY SEN MANAGING DIRECTOR Retail Banking Asia Pacific
Slide 2: Retail Banking is an integral part of IIB customer segments
Retail Banking is an integral part of IIB customer segments International & Institutional Banking Customer Business Execution Global Products Enablement Segments & Performance 1 4 6 8 Global Finance Banking Business Global Markets Performance and Loans 9 Management 2 Risk International Banking 5 7 1
Slide 3: Asia Pacific individual wealth growth rates remain high and markets are becoming more well regulated
Asia Pacific individual wealth growth rates remain high and markets are becoming more well regulated Growing GDP and maturing financial markets in Asia Pacific Asia Pacific North America Europe • Strengthening regulatory frameworks 5% 4% • Proliferation of products & services 3% 2% • Heightening com
Slide 4: Affluent customers in Asia typically have relationships with 4-5 banks
Affluent customers in Asia typically have relationships with 4-5 banks with a ~50% local vs foreign bank ratio Number of relationships with and products held by affluent banking clients Taiwan 14.8 products with 5 institutions China 11.5 products with 4.2 institutions Hong Kong 12.8 products with 4.
Slide 5: Retail Asia Pacific plays an important role in the ANZ super regional strategy
Retail Asia Pacific plays an important role in the ANZ super regional strategy 3 core contributions to the Our strategy is focused on the super regional strategy 4 key pillars Geography Segment Channel Operating model Liquidity Focus on Affluent and Digital Efficient priority Emerging proposition en
Slide 6: Our balance sheet continues to grow with stable customer deposits
Our balance sheet continues to grow with stable customer deposits, contributing to increased liquidity Stable Customer Deposits & AUM Growth Strong Growth in Assets Customer Deposits & AUM Net Loans & Advances $b AUM $b Customer Deposits 18% CAGR 17.8 35% CAGR 14.7 12.8 7.9 5.7 4.3 Mar-12 Mar-13 Mar
Slide 7: Our brand awareness and market recognition as a key foreign retail provider are increasing
Our brand awareness and market recognition as a key foreign retail provider are increasing in Asia Brand Awareness and Value Awards & Recognition Regional Retail Asia Pacific Most valuable brand globally1 #51 Ahead of Citi & Standard Chartered Bank Excellence in Customer Centricity Retail Banker Int
Slide 8: A focused strategy and execution are crucial to deliver our 3 core contributions
A focused strategy and execution are crucial to deliver our 3 core contributions to ANZ in Asia Pacific OPERATING GEOGRAPHY SEGMENT CHANNELS MODEL Focus on core Focus on Building a strong Continue to geographies while “affluent” and digital proposition simplify our leveraging on our “emerging infras
Slide 9: Geography: Growing in priority markets and leveraging our distinctive footprint
Geography: Growing in priority markets and leveraging our distinctive footprint to deliver connectivity and growth A distinctive A distinctive geographic footprint geographic footprint 1 Differentiated offering 21 Countries • Australia & New Zealand expertise 136 Branches • Clear connections across
Slide 10: Segment: Positioned as a niche player, targeting Affluent and Emerging Affluent
Segment: Positioned as a niche player, targeting Affluent and Emerging Affluent segments Retail Customer Lifecycle Save and Access to Purchase an Grow your Protect life Transact credit asset wealth and assets CASA Credit Card Mortgage Investments Insurance Personal Loan Emerging Affluent Affluent Co
Slide 11: Segment: Signature Priority Banking for sophisticated affluent clients
Segment: Signature Priority Banking is designed to meet the needs of sophisticated affluent clients in Asia Signature Banking Proposition Dedicated Servicing Model • “Recognize me, understand me” through the • Dedicated Relationship Manager A – Z review • Supported by a team of Specialists: • Bankin
Slide 12: Channel: Building out our digital proposition
Channel: Building out our digital proposition to provide a multi-channel experience for our customers Current Retail Asia Pacific Channel Capability 136 Branches 14 Contact Centres 514 ANZ-branded ATMs 18 Countries with Digital capability 1. Contact Centre locations include Manila and Suva hub 12
Slide 13: Channel: Branchless mobile banking in the Pacific
Channel: Branchless mobile banking is significantly improving our distribution capability in the Pacific • Launched in 4 countries: Papua New Guinea Samoa Solomon Islands Vanuatu • More than 500 merchants • Acquired over 50,000 new to bank clients • Processed over 1 million transactions sinc
Slide 14: Operating model: Streamlining our business to become simpler, cheaper and faster
Operating model: Streamlining our business to become “simpler, cheaper and faster” Transforming our Operating Model Improving Revenue per FTE1 $‟000 • Simplify our business 12% 216 • Optimise our resources 192 • Build a strong execution culture • Strengthen our foundation 1H13 1H14 Accelerating grow
Slide 15: Retail Asia Pacific is delivering diversified income and sustainable growth
Driven by its 7 priorities, Retail Asia Pacific is delivering diversified income and sustainable growth Diversified Revenue Improved Financial Indicators Key Financial Indicators, Banking & reduction/increase from 1H12 to 1H14 Wealth, 23% 42% 29% Credit Cards Unsecured Lending 9% Cost to Income 1H
Slide 16: Retail Banking strategy aligned to IIB's strategic priorities
Retail Banking strategy and execution are aligned to market opportunities and IIB’s strategic priorities IIB STRATEGIC KEY AREAS OF FOCUS FOR RETAIL BANKING PRIORITIES • Build end-to-end focus on customer delivery – from point of Connecting more acquisition and throughout the lifecycle Customers by
Slide 17: www.anz.com
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
Slide 18: ANZ Asia Investor Tour 2014
ANZ ASIA INVESTOR TOUR 2014 AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 24 JULY 2014 SAMEER SAWHNEY MANAGING DIRECTOR Global Banking
Slide 19: Global Banking forms a key element of IIB's coverage of our target segments
Global Banking forms a key element of IIB’s coverage of our target segments International & Institutional Banking Customer Business Execution Global Products Enablement Segments & Performance 1 4 6 8 Finance Global Banking Business Global Markets Performance and Loans 9 Management 2 Risk Internation
Slide 20: Asia enjoys the highest growth in banking revenue pools
The macro fundamentals show that Asia enjoys the highest growth in banking revenue pools Asia Pac is expected to deliver almost 50% Asia Pac markets will represent ~US$800 of growth in banking revenue pools billion in revenues by 2017 Forecast absolute growth in Global Banking revenues Forecast reve
Slide 21: Global Banking focuses on large, cross border companies
Through industry expertise, Global Banking focuses on large, cross border companies operating in ANZ’s region ANZ Customer Segments IIB Relationship Global Banking Sub Segments Businesses Industries • Oil & Gas Resources, Energy & • Global Commodities Companies Infrastructure (REI) • Mining and Meta
Slide 22: Global Banking constitutes a significant proportion of IIB's customer business
Global Banking constitutes a significant proportion of IIB’s overall customer business Global Banking is focused on a select …generating almost half the revenue number of IIB total customer base… IIB Clients (excl. Retail)1 FY13 Institutional Revenue (Sep-13) Remainder of 41% Institutional ~$4.5b Gl
Slide 23: A diverse, growing client base focusing on high growth areas
A diverse, growing client base focusing on high growth areas Our client portfolio is diversified across …and regionally as we build a broader industry… Asian client franchise Global Banking Revenue1 Mix by Segment Global Banking Revenue1 Mix by Geography $2.4b $2.6b $1.4b $2.4b $2.6b $1.4b Americas
Slide 24: Global Banking targets deeper and broader client relationships
Global Banking has a specific set of clients with whom we are targeting a deeper and broader relationship Who we serve and how will we succeed Characteristics of a Global Global Banking Banking client How we will win? Leading/Significant players in • Senior Industry bankers - their industries Experi
Slide 25: Strong regional execution capability has given ANZ a strong position
Strong regional execution capability and product has given ANZ a strong position in Australasia and Asia No.1 Lead Bank for more large corporate A top 4 Corporate Bank in Asia2 customers in Australia1 by Market Penetration Share of lead bank, 2014 Greenwich Associates Large Corporate Study Asian Lar
Slide 26: Global Banking offers a good mix of flow and value added solutions
Global Banking business offers a good mix of flow and value added solutions with increasing regional connectivity across existing clients Currently a substantial portion of our With extra upside from regional business is flow and value add connectivity Global Banking revenue mix Regional connectivit
Slide 27: With coverage in 17 countries, Global Banking assists clients grow through the region
With coverage in 17 countries, Global Banking is able to assist our clients grow through the region From a lending relationship in one country to one company, now banking 33 companies across nine countries in the group and becoming Trusted Advisor Customer Case Study: 2008-09 • Relationship Initiati
Slide 28: End-to-end approach with customers
Global Banking will achieve its strategic priorities by providing an end-to-end approach with customers Global Banking “Supply Chain” PROCUREMENT TRANSPORT PROCESSING • Global banking aligned to supply chain of multi nationals • Able to provide services though the vertical value chain of our custome
Slide 29: Delivering on IIB strategic priorities
Delivering on these IIB Strategic Priorities will be critical for us to maintain our home market lead position and accelerate even further in Asia IIB STRATEGIC KEY AREAS OF FOCUS FOR GLOBAL BANKING PRIORITIES • Deepen existing client relationships Connecting more • Increase connectivity of our clie
Slide 30: Appendix
APPENDIX
Slide 31: Recognised expertise through recent awards
Recognised expertise through recent awards ASIA PACIFIC SYNDICATED ASIA PACIFIC SYNDICATED ASIA PACIFIC SYNDICATED PETER LEE PETER LEE LOAN AWARDS LOAN AWARDS LOAN AWARDS NO.1 LEAD BANK FOR MORE LARGE NO. 1 FOR OVERALL MARKET ASIA PACIFIC SYNDICATED SYNDICATED LOAN HOUSE OF THE SYNDICATED LOAN HOUSE
Slide 32: Successful execution capabilities
Successful execution capabilities AUD 400,000,000 EUR 2,300,000,000 USD 400,000,000 USD 360,000,000 USD 1,500,000,000 USD 700,000,000 AngloGold Australia Volvo China Hongqiao Tong Teik CNOOC Limited Formosa Steel IB Pty Ltd REVOLVING CREDIT FACILITIES 3YEAR SENIOR UNSECURED NOTES SYNDICATED BORROWIN
Slide 33: www.anz.com
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
Slide 34: ANZ Asia Investor Tour 2014
ANZ ASIA INVESTOR TOUR 2014 AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 24 JULY 2014 SIMON IRELAND GLOBAL HEAD OF BANKS & DIVERSIFIED FINANCIALS Financial Institutions Group
Slide 35: FIG is a customer segment within Global Banking
FIG is a customer segment within Global Banking International & Institutional Banking Customer Business Execution Global Products Enablement Segments & Performance 1 4 6 8 Global Banking Finance Business FIG Global Markets Performance and Loans 9 Management 2 Risk International Banking 5 7 10 HR 3 G
Slide 36: ANZ FIG serves a targeted, select set of Financial Institutions
ANZ FIG serves a targeted, select set of Financial Institutions active across our network Segment Description • Global, regional and local Banks banks with transaction needs Emphasis on Low Balance Sheet Intensity Products… • Regulated Brokers, Exchanges, Diversified • Markets: FX, Rates, Credit and
Slide 37: FIG continues to grow and has a liquid balance sheet
FIG continues to grow and has a liquid balance sheet FIG Financial Relative to Performance IIB Total YOY Growth 16.6% 17.5% 13.0% Revenue1 1H14 FY12 FY13 1H14 PCP 22.2% Deposits 7.1% Mar-14 -2.4% Sep-12 Sep-13 Mar-14 PCP 14.7% 12.4% Lending Mar-14 -6.7% Sep-12 Sep-13 Mar-14 PCP Rest of IIB FIG 1. FI
Slide 38: The expanding financial services sector in Asia provides the foundation for FIG growth
The expanding financial services sector in Asia provides the foundation for FIG growth Growing Banking Assets Growing Assets Under Management Banking Assets 2014-2017 Personal Wealth1 2014-2017 US$ tn CAGR US$ tn CAGR 142 4.3% 87 6.2% 10.3% 7.0% 125 3.3% 73 108 Rest of World 5.7% North America 55 Re
Slide 39: We have built our FIG capabilities in Asia on our Australia/NZ foundation
We have built our FIG capabilities in Asia on our Australia/NZ foundation and the IIB product build-out 2009 – 2010 2011 - 2013 Today Building the Getting off the Ground Competitive Offering Platform • Identified FIG as a global • Enhance product offering – • Strong presence in home growth opportuni
Slide 40: FIG is expanding in Asia and improving product mix
FIG is expanding in Asia and improving product mix as we deepen our capabilities and broaden our reach Geographic Mix Product Mix FIG Revenue Mix by Geography1 FIG Revenue Mix by Product Pacific 3.2% 2.6% 2.6% Retail, 21.3% 19.9% 24.0% 24.3% Private Bank Asia 26.8% 30.5% & Other 10.0% 8.6% Lending 1
Slide 41: FIG competes with global and regional players using a focused model
FIG competes with global and regional players using a focused model balancing revenue potential with cost FIG Competitive Positioning Full Service Universal Banks Increasing Broad FICC & cost Commercial Banking Specialist Banks (Clearing, Investment Banks) Domestic Regional Global Increasing cost 8
Slide 42: ANZ FIG's value proposition
ANZ FIG’s value proposition is built on a unique mix of rating, footprint and product capabilities ANZ Global FIG Value Proposition Value Proposition ANZ’s Competitive Advantage • Provide international Financial • AA rating, reputation and steeping into Institutions with capital raising, gaps vacate
Slide 43: Leading products strengthen ties to customers and enhance cross-sell
Leading products strengthen ties to customers and enhance cross-sell of flow products Debt Markets Physical Gold • Strong track record of issuance for • Top 3 position in gold imports into China – the largest Chinese, Korean, Singaporean and market globally, with 1,540 tonnes imported during 2013 Mi
Slide 44: Sophisticated transactions for our clients
As demonstrated by sophisticated transactions for our clients USD 400m USD 300m USD 800m USD 700m USD 135/EUR 95m USD Hana Bank AmBank (M) Berhad China CITIC Bank Int. United Overseas Bank Bank of Communications USD400mn 5-Year 3.125% USD300m 7.250% USD800mn 3.750% Hong Kong Branch Term Loan Facilit
Slide 45: FIG is critical to our originate-to-distribute model
FIG is critical to linking home market and Asian clients to global investors in our originate-to-distribute model Originate from Clients FIG is Critical to Originate- Distribute to Clients to-Distribute Balance Sheet Progress to Date Resources, Energy Commercial / & Infra. Private Banks • Distributi
Slide 46: FIG's objective to be a core FICC and TB partner for FIs across Asia Pacific
FIG’s objective to be a core FICC and TB partner for FI’s across Asia Pacific aligns to IIB priorities IIB STRATEGIC KEY AREAS OF FOCUS FOR FIG PRIORITIES • Enhance investor client value proposition through increased specialization of the relationship team Connecting more • Dedicated Markets and Tra
Slide 47: Appendix
APPENDIX
Slide 48: Loan Syndication League Table
Loan Syndication League Table 2013 Mandated Arranger League Table for Financial Institutions (Asia Pacific ex Japan) Rank Lender Amount Deal Count (USD mn) 1 Mizuho Financial Group 466 6 2 ANZ 435 11 3 HSBC 433 8 4 Mitsubishi UFJ Financial Group 360 5 5 Sumitomo Mitsui Financial Group 316 6 6 Commer
Slide 49: www.anz.com
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
Slide 50: ANZ Asia Investor Tour 2014
ANZ ASIA INVESTOR TOUR 2014 AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 24 JULY 2014 WILL RATHVON GLOBAL HEAD OF RESOURCES, ENERGY & INFRASTRUCTURE Resources, Energy & Infrastructure
Slide 51: Resources, Energy and Infrastructure is a customer segment within IIB
Resources, Energy and Infrastructure (REI) is a customer segment within IIB International & Institutional Banking Customer Business Execution Enablement & Global Products Segments & Performance Control 1 4 6 8 Global Banking Finance Business REI Global Markets Performance and Loans 9 Management 2 Ri
Slide 52: Emerging industry themes in Resources, Energy and Infrastructure
Emerging industry themes in the Resources, Energy and Infrastructure space provide ongoing opportunities Key industry themes Opportunities • Global LNG demand is forecast to • Rationalisation and „high-grading‟ of more than double by 2030 LNG portfolios including M&A and • China and Japan is emergin
Slide 53: The ANZ REI business focuses on 4 key segments
The ANZ REI business focuses on 4 key segments Segment Description • Oil & Gas development and Oil & Gas production, LNG, refining, and petrochemicals Emphasis on selected products and geographies • Globally diversified miners, industry leaders, and specialist resource • Transaction Banking: Trade M
Slide 54: REI is a growing priority segment
REI is a growing priority segment, leveraging strong Australian expertise for our offshore offering REI Financial Relative to Performance IIB Total REI Business Mix – 1H14 Revenue by geography Revenue by sub-sector 10% 31% 30% Revenue 43% 48% 11% 1H14 27% Europe & America Mining & Metals Australia &
Slide 55: Leveraging our long history with the Australian Resources & Infrastructure sector
We are leveraging our long history with the Australian Resources & Infrastructure sector to grow REI globally ANZ’s rich history with natural resources and infrastructure Supported resources and infrastructure clients since 1886, remaining committed throughout all commodity cycles and changes in t
Slide 56: ANZ is differentiating itself with a whole of client approach
ANZ is differentiating itself with a whole of client approach through insights and home market expertise Nature of our ANZ’s proposition How we will win clients Leading with our deep • Leveraging our resources expertise Geographic to differentiate from global and experience and expertise in breadth
Slide 57: Building a core client and global flow proposition
We are building a core client and global flow proposition focusing on key market corridors REI is focused on a small number of complex multi national clients, the right balance of Industry specialisation, and regional & local teams Global Clients Regional Clients Local Clients Specialist relationshi
Slide 58: Deepening relationships with less capital intensive products
We will continue to deepen our established relationships with less capital intensive products Our value added solutions will focus on flow …with deeper focus on key business and value added solutions… offerings REI Revenue Mix Flow business (Markets) • Foreign Exchange 2% 3% • Commodities 24% 19% 20
Slide 59: Good progress to date with our strategic evolution
Good progress to date with our strategic evolution by leveraging our home market strengths to build offshore Stage I (2008-11): Stage II (2012-13): Stage III (2014+): Initiating our “Super- Executing to “Super- Success stories Regional” approach Regional” approach Becoming one of the Our clients are
Slide 60: Clear opportunities to support the IIB priorities in the medium term
Clear opportunities to support the IIB priorities in the medium term IIB STRATEGIC KEY AREAS OF FOCUS PRIORITIES • Drive deeper multi-geographic sector coverage expertise in the Connecting more four priority sub-segments to multi-national clients, leveraging Customers by our expertise as the leading
Slide 61: Appendix
APPENDIX
Slide 62: Client feedback with our strategy
Client feedback with our strategy Client Testimonials “Over the past 24 months, we have noticed a positive change in working more closely with ANZ‟s global Natural Resources team, and have appreciated the team‟s Oil & Gas co-ordination, commitment, and responsiveness to our banking and finance needs
Slide 63: www.anz.com
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
Slide 64: ANZ Asia Investor Tour 2014
ANZ ASIA INVESTOR TOUR 2014 AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 24 JULY 2014 SREERAM IYER CHIEF OPERATING OFFICER, INTERNATIONAL & INSTITUTIONAL BANKING Operational Strategy
Slide 65: International & Institutional Banking Structure
International & Institutional Banking Structure International & Institutional Banking Customer Business Execution Global Products Enablement Segments & Performance 1 4 6 8 Global Finance Relationship Business Banking Global Markets Performance and Loans 9 Management 2 Risk International Banking 5 7
Slide 66: Our function supports the delivery of the IIB strategy
Our function supports the delivery of the IIB strategy Customer interface Customer Service Operations Delivery Model Customers Frontline Enterprise business Capability Service Quality • Relationship • Global management Regional Delivery Customer initiation Network: • International • Product, market
Slide 67: Our operations delivery model focuses on customer outcomes
Our operations delivery model focuses on customer outcomes Operations Delivery Model • In addition to transactional processing responsibilities, we proactively provide customer insights and analytics to service our relationship teams and add value to our customers • We have made ~3,000 client visits
Slide 68: Regional Delivery Networks have created scale
Our Regional Delivery Networks have created scale to support efficient business growth Operations Delivery Model • We optimise our cost to serve customers through productivity measures in-country and our regional delivery centres • Our function processed ~30 million transactions in 2013 with the cap
Slide 69: Regional Delivery Centres are strategically aligned and integrated
Regional Delivery Centres are strategically aligned and integrated to the business From To Operational advantages via the Regional Delivery Network Individual Hubs to an Integrated Network with Enterprise thinking • Built-in operational resilience with load balancing of critical processes to Individ
Slide 70: Technology has a pivotal role in the transformation of our core business domains
Technology has a pivotal role in the transformation of all our core business domains A consistent customer experience Connected Customer Experience via a multi-channel platform for our business Self-serve channels Assisted channels A regional delivery network Common Enterprise Capabilities allow
Slide 71: IIB Operations have successfully increased productivity
IIB Operations have successfully increased productivity Improved capability and geographic Driving productivity dispersion of where our employees are based IIB Operations FTE profile1 IIB Operations Cost to Revenue2 6.0% Offshore Onshore 5.41% 5.5% 36% 5.0% 4.45% 4.25% 4.5% 33% 3.86% 4.0% 80% 3.5% 3
Slide 72: Creating a continuous improvement culture
Creating a continuous improvement culture to drive business performance Standardise Enrich Simplify Maintaining a focus on Driving simpler and streamlined Re-engineering standard consistent customer service processes with a focus on Actions processes and creating more experience while providing cust
Slide 73: Our priorities support the next phase of IIB strategy
Our priorities are focused on supporting the next phase of IIB strategy IIB STRATEGIC KEY AREAS OF FOCUS FOR OPERATIONS AND PRIORITIES TECHNOLOGY Connecting more • Nimble cross-border delivery by making use of our natural time- Customers by zone advantage to shorten servicing and processing turnarou
Slide 74: Appendix
APPENDIX
Slide 75: Our function is well integrated into the IIB business and enterprise delivery division
Our function is well integrated into the IIB business and enterprise delivery division Businesses Divisional IIB COO Customer Australia New Zealand International & Institutional Banking Global Wealth IIB Payments & Cash Customer Businesses Operations Divisional Australia IIB Lending Operations IIB C
Slide 76: www.anz.com
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
Australia and New Zealand Banking Group — Non-Deal Roadshow (July 2014) on 6ix