Anz Group Holdings Limited · ASX:ANZ
Anz — UBS Global Financial Services Conference 2006
24 slides from Anz's conference presentation, May 16, 2006
Slide 1: i Se Se | > Se Se Bo a ea a ew ae ae
i Se Se | > Se Se Bo a ea a 2 ew ae ae 1 a ie a —. —— CS
Slide 2: ANZ is one of Australia's "BIG FOUR" banks and New Zealand's largest banking group
ANZ is one of Australia’s “BIG FOUR” banks and New Zealand’s largest banking group Snapshot e Established 1835 e Represented in 27 countries e Market capitalization ~ US$40b « Amongst the top 50 banks in the World by market capitalization; top 10 in Asia « #4 listed company in Australia e Largest co
Slide 3: A good first half for ANZ
A good first half for ANZ 1HO6 v 1HO5 Statutory profit 4} 16% Cash’* profit 4 10% Cash’ profit before provisions 4p 10% Cash* EPS 4» 10% Dividend 4s 10% 2006 guidance Revenue Growth* 8% 7%-9% Expense Growth* 6% | 5%-7% *adjusts headline numbers for AIFRS 2005 adjustments, significant items and incre
Slide 4: ANZ's specialist business model delivering results
ANZ’s specialist business model delivering results Strong Divisional Revenue Product business growth driving 1H06* performance* performance 16% | Mortgages _ Consumer | Finance “1&1 i Banking | Products © Regional & _ Rural . ses . *growth Mar06 v Maro5, 4 Note: Esanda, Pacific and Small Business ef
Slide 5: Success in Personal due to an effective business system
Success in Personal due to an effective business system “More @ Convenient Banking”
Slide 6: Strategy starts with clear segmentation
Strategy starts with clear segmentation Price Driven Service Driven pa ee % etna SUSAN ¢ ANZ brand for non-price-driven segments BankWest e Use other brands for other segments e Defend share via price where necessary Emerging Prime _ Sub Prime _ Un-banked
Slide 7: Customer insights led to "More Convenient Banking"
Customer insights led to “More Convenient Banking” Key Decision Factors for Customers (importance out of 10) Low fees Why should Branches convenient os customers People bank with Straightforward fees increasingly . “time poor” — ANZ Staff engaged | looking for (and not convenient, somebody simple e
Slide 8: Success in Personal due to an effective business system
Success in Personal due to an effective business system Straceqy Pn ae Performance ae wg “More ( Convenient Financ Banking” Customers
Slide 9: We have invested in our employees and our culture...
We have invested in our employees and our culture... Significant investment in Delivering on our commitment employees, largely frontline to cultural change (% Personal employees completed “Breakout” program) 1,124 new employees 13% (up 13%) 9,799 53% 8,675 33% 1HO4 1HO6 1HO04 1HO6
Slide 10: .. resulting in a highly engaged workforce
.. resulting in a highly engaged workforce Dramatic shift in staff satisfaction High levels of engagement (“am I satisfied working at the ANZ?”) across the Personal Division 66% 100% 7 omomn Positive Responses —Negative Responses 80% 7 88% 60% + Personal ANZ Group Banking Division Benchmark 57% 40%
Slide 11: Success in Personal due to an effective business system
Success in Personal due to an effective business system Financial Performance wg “More N, gp. ~=Convenient customers Banking”
Slide 12: Specialization has delivered product and service excellence
Specialization has delivered product and service excellence Personal Investor Awards « Home Lender of the Year « Low Doc Money Saver of the Year « Premium Banking Package of the Year « “People’s Choice” award Money Magazine Awards « Money Minder of the year (Savings & Transactions Accounts) « Home L
Slide 13: Expanding distribution to improve convenience
Expanding distribution to improve convenience New Branches and ATMs 800 5 r 1,800 780 4 r 1,650 r 1,500 760 4 r 1,350 740 5 r 1,200 720 L 1,050 700 = - 900 Sep-04 Mar-05 Sep-05 Mar-06 we Branches (LHS) ="ATMs (RHS) Target: 80 new branches by 2007 Dc AF Wie Ea a
Slide 14: Success in Personal due to an effective business system
Success in Personal due to an effective business system Financial Performance “ac SOO “More Ernployees ( Convenient Banking” Customers %. \ 7 Products & Distribution 14
Slide 15: "Proof points" starting to differentiate ANZ brand
“Proof points” starting to differentiate ANZ brand Call Centres open 24/7 More ATM locations in key areas Ns Me First major bank to launch Visa Debit card ANZ ever) day We Wo Tie INABE
Slide 16: ..Which drives future acquisition and retention
..Which drives future acquisition and retention Improved “Trial Intention” Lowest propensity to defect* (Day to Day Transaction Accounts* ) % 25 7 50% 7 20 4 40% 4 30% 7 10 4 20% 7 5 T T T T T T 10% T r . . 1 Sep- Dec- Mar- Jun-05 Sep- Dec- Mar- Sep-02 Sep-03 Sep-04 Mar-05 Sep-05 04 0405 05 05% mm A
Slide 17: Success in Personal due to an effective business system
Success in Personal due to an effective business system o> — / “More Employees Convenient Banking” f eye’ \ OS
Slide 18: Highest customer satisfaction of any major bank...
Highest customer satisfaction of any major bank... Overall customer satisfaction (Main Financial Institution*) om wn o » & 3G 90-4eW g0-des go-1eW $0-des r0-JeW €0-des €0-4eW z0-des Z0-4eW To-des TO-eW 00-des 00-JeW 66-des 66-12W 86-des 86-JeW 26-deS 26-JeW 96-das —— Peer Banks ANZ
Slide 19: .. leading to higher share of wallet and market share
.. leading to higher share of wallet and market share Share of wallet (traditional banking products*) " 8.1% 1 2.4% (Fe'06) —— ——) 49.450-6% 51.9% 49.2% 44.0% ANZ Peer Ave. f Mar-04 la Feb-06 , Tight peer | Market Share Gap 14.3% 14.2% 13.2% Mar-O3 Mar-04 Mar-05 Feb-06 et ANZ & # 2 peer rs Mz *Sourc
Slide 20: Success in Personal due to an effective business system
Success in Personal due to an effective business system \ ac “More Employees N, ys ~=Convenient customers Banking” wie)
Slide 21: Non price led strategy delivering attractive growth...
Non price led strategy delivering attractive growth... Retail Deposits - FUM Growth v Margin 7% 7 6% 7 E 5% _ 6 SB 4% 4 — i = ° Peer 3 £ : 1o) =s 3%7 ee ~) Peer 2 ou 2% 7 1% 7+ 0% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Margin on net FUM Note - size indicates Net Interest Income contribution of ne
Slide 22: ... resulting in sustainable revenue and profit growth
._. resulting in sustainable revenue and profit growth * Revenue/Cost ‘Jaws’ widening Strong profit momentum (pcp) 15.9% 12.7% 1HO5 2HO5 1HO6 i Income Growth @ Expense Growth Ee Ze, Te §— pcp growth 1H06 AIFRS, 1HO5 & 2HOS AGAAP 22 GO ae
Slide 23: Summary
Summary e No “silver bullet” explains ANZ’s Retail Banking success e Our business system is delivering strong, sustainable growth ¢ We will continue to invest in “More Convenient Banking” e Lots more upside in customer #s, wallet share, and efficiency
Slide 24: The material in this presentation is general background information about the Bank’s
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