Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Investor Presentation (June 2010)
52 slides from Anz's investor presentation, Jun 8, 2010
Slide 1: Asia Tour 2010 APEA investor update
For personal use only Asia Tour 2010 Asia Pacific, Europe & America (APEA) investor update Alex Thursby CEO Asia Pacific Europe & America 8 June 2010
Slide 2: Introduction
Introduction For personal use only Global economics have reinforced the strength of ANZ‟s super regional strategy Strong focus, execution and risk management We have delivered against commitments 1
Slide 3: Regional and intra-regional trade and investment flows are substantive
Regional and intra-regional trade and investment flows are substantive For personal use only Denotes two way trade flow (2008) FDI inward flow (USDb, 2008) Asia1-Europe Asia1-USA Trade: US$1.1trn Trade: US$1.0trn CN TW 108 5 IND HK 42 63 Pacific-Asia1 VN 8 Trade: US$7b INDON Intra-Asia1 8 Trade: US$
Slide 4: Strong savings coupled with economic growth is building large liquidity pools
Strong savings coupled with economic growth is building large liquidity pools For personal use only Growth of wealth and liquidity in Asia Growth of wealth and liquidity in Asia Liquidity in Asia2 No. of wealthy individuals1 (m) CAGR Current Account System Surplus Loan/Deposit 49.9 11.5% 41.4 Ratio
Slide 5: Deep onshore presence and strong network model delivers connectivity to clients
Deep onshore presence and strong network model delivers connectivity to clients For personal use only Franchise Franchise Markets Network Core markets for Institutional, Commercial, Retail & Wealth Hubs • Greater China • Greater Mekong1 • India • Indonesia • Malaysia • Pacific Regional Business Hubs
Slide 6: Since 2008, we have prioritised our build out
Since 2008, we have prioritised our build out, enabling us to become a credible competitor For personal use only 1H 2008 Today • Institutional network • Pan-regional Institutional/commercial business • Formed partnership with • Top 4 foreign bank in Indonesia South and AmBank • Largest foreign bank
Slide 7: We have de-risked to align with the new strategy
We have “de-risked” to align with the new strategy and implemented a strong governance framework For personal use only Key Actions De-risked book • Exited a number of non core clients across the business • Substantial upgrading of country CEOs, CROs and Implemented business heads strong country • Un
Slide 8: We are delivering on our strategic and financial commitments
We are delivering on our strategic and financial commitments For personal use only Strong funding growth APEA contribution to Group profit Net Loans & advances1, Deposits (USD b) % of underlying PBP & NPAT 37.4 Net Loans and Advances 20% Profit before provisions Reported Deposits 26.8 NPAT Normalise
Slide 9: Drivers of success
Drivers of success For personal use only Highly focused strategy – specific markets and customer segments Disciplined customer acquisition in targeted segments Leveraging network to deliver geographical interconnectivity to our clients Recruited experienced Asian insiders for management team
Slide 10: Business strategy allows for efficient use of APEA's liquidity surplus
Business strategy allows for efficient use of APEA's liquidity surplus For personal use only • Focus on affluent and emerging affluent client segments Business Strategy • Building a substantive DCM and Cash Management capability and investor client base This focus allows us to: • Fund our own region
Slide 11: Becoming a top four Institutional bank in Asia Pacific
Becoming a top four Institutional bank in Asia Pacific For personal use only Customer Segments Value Proposition • Be a core wholesale bank to our clients Institutional • Leveraging our strengths: MNC / Regional Corporate – Regional network and connectivity – AA rating Commercial – Deep insights – g
Slide 12: Our regional connectivity is delivering for Institutional clients
Our regional connectivity is delivering for Institutional and our clients across Asia and the Pacific For personal use only Regional Connectivity Examples • Mandated Lead Arrangers with BNP and European and US Multinational HSBC companies accessing Asia • USD411m (2.7x launch size)-maiden Asian synd
Slide 13: Our Institutional client transactions tell the story
Our Institutional client transactions tell the story For personal use only Debt Capital Markets Queensley Holdings FTP Corporation Vietnam Electricity Melco Crown Entertainment Metrobank Card Corporation Temasek SGD 549,000,000 VND 1,800,000,000,000 VND 3,500,000,000,000 USD 600,000,000 PHP 2,000,00
Slide 14: Retail & Wealth and Private Bank will deliver local and regional banking
Our Retail & Wealth and Private Bank will deliver local and regional banking to the affluent in each market For personal use only • HNW, Affluent & Emerging Affluent Customer segments • Owners, management and staff of our institutional and commercial clients Position and Value Proposition • Three cr
Slide 15: We are investing in our brand profile
We are investing in our brand profile For personal use only • Completed rebranding across APEA – October 2009 • Launching Chinese brand across the region • Positioning as an upscale international brand aligned to HNW and affluent customer focus • Building Institutional recognition around connectivit
Slide 16: Five key partnerships expand our organic agenda
Five key partnerships expand our organic agenda For personal use only Double play in high growth, high return market Partnership Model Focus on our key segments (Commercial, Affluent & Emerging Affluent) • Significant influence Scale (Number 5 by assets & deposits) in a closed market • Exposur
Slide 17: Organic growth a key driver of strategy
Organic growth a key driver of strategy For personal use only 2008 2009 2010 2011 2012+ Develop strategy and Continue organic Extend and deepen build business model growth with bolt-ons franchise • Build substantive Institutional • Organic growth anchored by • Deepen organic growth in business Insti
Slide 18: Summary: Focus and disciplined execution
Summary: Focus and disciplined execution has seen us deliver on our commitments and build momentum For personal use only Credible competitor in Simple, Institutional across powerful vision + Building blocks = Asia, Europe and America • Compelling value • Focused execution • Substantial Institutional
Slide 19: Asia Financial Overview
For personal use only Asia Investor Update Financial Overview Wayne Stevenson CFO Asia Pacific Europe & America 8 June 2010 Note: All figures in USD ($) and calculated on an “underlying” basis unless otherwise stated
Slide 20: Strong growth in profit while building a sustainable franchise
Strong growth in profit while building a sustainable franchise For personal use only Net Profit after tax • Over 5 consecutive years of record Asia Pacific, Europe & America (APEA) profit growth 2007 – 2009 CAGR 32%2 • Organic and partnership businesses USD m 511 are driving revenue growth • Investm
Slide 21: Contribution to the group has increased and provides a diverse earnings mix
Contribution to the group has increased and provides a diverse earnings mix For personal use only APEA contribution to Group profit Geographic contribution % of underlying PBP & NPAT (AUD) APEA NPAT FX impacts 20% Europe & America benefiting 27% 25% Reported 18% 2009, a drag 23% Pacific Normalised f
Slide 22: Revenue performance has supported continued investment
Revenue performance has supported continued investment in the business For personal use only Investment across organic and Underlying Revenue & Expenses inorganic business USD m USD m 900 3,000 Excludes RBS 2007 – 2009 “Jaws” 2% 800 2,500 Mainly driven by 700 retained earnings 600 2,000 500 1,500 40
Slide 23: Revenue profile weighted to non interest income
Revenue profile weighted to non interest income For personal use only Currency volatility disguises APEA revenue split underlying momentum AUD reported 1,071 896 886 1.1 AUD/USD FX 356 172 83 0.9 USD m 0.7 AUD/USD 803 Avg 6 months 0.5 800 715 724 10/08 04/09 10/09 04/10 700 600 Markets income weight
Slide 24: Organic investment is directed to growing Asia infrastructure
Organic investment is directed to growing Asia infrastructure and customer proposition For personal use only NE Asia S & SE Asia Pacific E&A Distribution Retail Branches Frontline Staff Product Institutional Retail, Wealth & Private Bank Systems Core systems – ACE Program Anti Money Laundering (AML)
Slide 25: Structural savings surpluses in Asia generate deep liquidity pools
Structural savings surpluses in Asia generate deep liquidity pools For personal use only Asia savings surplus Lending & deposit growth Deposit to Loan ratio1 1H10 vs 2H09 (based on USD) 200% 160% Deposits exceed 6% 120% loans APEA 80% 39% 40% 0% 19% Greater South China East Asia Asia 42% Leading to
Slide 26: Focus on relationships is delivering a stable and growing deposit base
Focus on Affluent, Institutional & Corporate relationships is delivering a stable and growing deposit base For personal use only APEA Current and Saving accounts Targeting further diversification in (CASA) customer deposits (APEA Asia deposits) 4.5 USD b 1H10 Target mix Thousands 4.0 1H10 RBS contri
Slide 27: The portfolio is actively managed through regional treasury centres
The portfolio is actively managed through our regional treasury centres For personal use only APEA deposit book 1H10 40 USD b Deposit pools managed through our Local currency treasury centres, majority of APEA deposits Statutory deposits in interchangeable currencies deposits, 30 liquidity & other d
Slide 28: Diversified Institutional business is growing strongly
Diversified Institutional business is growing strongly from an established base. Significant investment in Retail and Wealth to generate longer term returns For personal use only Institutional Profit & Loss Retail Profit & Loss USD b USD b 500 500 Expense composition1 Pacific 400 400 SE Asia NE Asia
Slide 29: Continued strong contribution from Asia Partnerships
Continued strong contribution from Asia Partnerships For personal use only Partnership profit contribution to AmBank Reported Profit ANZ USDm 4,000 RM m Rev 2 Yr CAGR 9% 250 3,000 225 2,000 NPAT 2 Yr CAGR 23% 200 1,000 0 175 2007 2008 2009 2010 -1,000 150 Revenue NPAT 125 PaninBank Reported Profit 1
Slide 30: RBS contributing to balance sheet, yet to contribute to Profit and Loss
RBS contributing to balance sheet, yet to contribute to Profit and Loss For personal use only Greatest RBS FUM impact in RBS balance sheet contribution % of total 2H10, profit from 2011 Timing and size of RBS completions USD b Loans 100% 10 Other Deposits Indonesia > 80% 8 Singapore > Indonesia 60%
Slide 31: In summary
In summary For personal use only Strategic • Strategic target of 20% of Group profits by 2012 remains aspirations • Primarily driven by organic growth, RBS provides a step up • Revenue growth will continue to outpace the Group Business • Integrating RBS 2010, full impact of RBS yet to flow momentum
Slide 32: Asia Retail and Wealth Management
For personal use only Asia Investor Update Retail and Wealth Management Asia Pacific Wendy Lim Managing Director Retail & Wealth Management Asia Pacific 8 June 2010
Slide 33: Agenda
Agenda For personal use only Achievements • What we have achieved since 2007 • Provide a holistic banking experience • Building regional interconnectivity Priorities • Signature Priority Banking • Build alternative channels • Focus on the Affluent and Emerging Affluent segments Fulfilling full ban
Slide 34: We have grown Retail and Wealth in Asia Pacific since 2007
We have grown Retail and Wealth in Asia Pacific since 2007 For personal use only Significant customer build-out Growing funding base Customer Numbers („000s) Balance Sheet (USD b) 1,175 Net Loans & Advances ~17% CAGR 6.5 1,085 Customer funding 5.6 932 4.9 795 4.0 2.6 2.5 2.7 2.0 FY07 FY08 FY09 1H10
Slide 35: Our Retail and Wealth franchise spans Asian and Pacific markets
Our Retail and Wealth franchise spans 10 Asian markets and 11 Pacific markets For personal use only Countries in bold are Priority countries Asia Marked * are recent RBS acquisitions • Cambodia • China • Hong Kong* • Indonesia (ANZ plus RBS) • Japan • Laos • Philippines • Singapore* • Taiwan* Greate
Slide 36: Strategic priorities for Retail Banking & Wealth Management
Strategic priorities for Retail Banking & Wealth Management For personal use only Be a preferred bank to the Affluent segment in Asia and number 1 Retail bank in the Pacific Provide a holistic • Deliver an uncomplicated relationship-based banking banking experience experience • Provide a full suite
Slide 37: Our focus is on the Affluent and Emerging Affluent segments
Our focus is on the Affluent and Emerging Affluent segments as the key to our success For personal use only • Not a branch dependent strategy - focus is on relationship management and limited number of well located branches • Affluent segment in Asia is sufficiently large and holds dominant concentr
Slide 38: Fulfilling full banking needs
Fulfilling full banking needs For personal use only Target customer HNW Affluent Emerging affluent segment Private Banking Business segment Signature Priority Banking Deposits / Structured deposits Securities, DCI, SN Mutual funds Product Insurance portfolio Mortgages Cards Overdraft, Lombard1 Term
Slide 39: Capturing personal offshore banking flows
Capturing personal offshore banking flows, especially into the Singapore & Hong Kong hubs For personal use only Money flows Singapore Hub Greater China and Japan Vietnam Japan Laos Philippines Korea Thailand Cambodia China Taiwan Malaysia Hong Kong Singapore Indonesia Australia New Zealand 38
Slide 40: Personalised full banking experience for the Affluent segment
For the Affluent segment, we are providing a personalised full banking experience based on relationship and banking the family For personal use only Value Understands me, Recognises me Sales and Service Model Proposition Investment Insurance consultant Specialist • RMs trained as client advocates Gr
Slide 41: Signature Banking Proposition
Signature Banking Proposition… For personal use only “Each of us has a unique signature – a personal trademark that represents our personality and individuality. And that‟s the heart of ANZ Signature Priority Banking – understanding each customer as an individual with unique dreams and aspirations.
Slide 42: A fresh look to the old-fashioned banker approach
…with a fresh look to the „old-fashioned‟ banker approach For personal use only 41
Slide 43: Targeting the Emerging Affluent through alternate lower cost channels
We will target the Emerging Affluent through alternate lower cost channels, with lead and bundled offers For personal use only We will leverage alternative channels to … and acquire the customers through We will leverage alternative channels to service… „lead and bundled‟ products service… • Interne
Slide 44: Focus & disciplined execution has brought successes
Focus & disciplined execution has brought successes For personal use only Development of ANZ Retail & Wealth’s capabilities in Asia Pacific 2008 2009 2010 2011+ • Affluent • Affluent • Affluent • Affluent Clients • Emerging Affluent • Emerging Affluent • Emerging Affluent • Emerging Affluent • Austr
Slide 45: In summary
In summary: For personal use only Integrate RBS and build • Unify staff around ANZ values from the strong base • Increase customers share of wallet • Increase marketing activities targeted at the affluent Continue brand building segment momentum • Deliver a consistent high quality banking experience
Slide 46: Asia Private Bank
For personal use only Asia Investor Update Private Bank Nina Aguas Managing Director Private Bank Asia Pacific 8 June 2010
Slide 47: We have built a new Private Bank focusing on High Net Worth Individuals
We have built a new Private Bank focusing on a specific segment of High Net Worth Individuals For personal use only • Key segment: USD 1 – 10m AuM, represents best opportunity for maximum share of wallet Client segment • Become core to client and primary secondary bank • Competing in middle bracket,
Slide 48: Business model designed to capture cross-border needs of clients
Our business model is designed to capture the cross-border needs of our clients For personal use only Private Banking Hubs • Hong Kong • Singapore China Onshore presence • India Hong • Indonesia India Kong Taiwan • Taiwan Thailand • China (Wave 2) Vietnam Malaysia Offshore model Philippines • Indone
Slide 49: Customer value proposition: ANZ is my Trusted Advisor
Clearly defined customer value proposition based on insight, service and connectivity: “ANZ is my Trusted Advisor” For personal use only Customer experience themes Customer proof points • Holistic view of clients‟ interests, needs and risk Deep understanding profiles of my Insights personal, profess
Slide 50: Re-invigorated and strong Private Banking Brand
Re-invigorated and strong Private Banking Brand For personal use only Weekly newsletter Banners Product Fact sheet Brochure 49
Slide 51: In summary
In summary For personal use only • Increase experienced Asian insider Private Bankers to 150+ Strengthen • Recruit skilled enablement support functions people capability • Deploy investment team support model to clients • Successful integration of RBS acquired platforms Strengthen • Build market lea
Slide 52: For personal use only
For personal use only 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 p
Australia and New Zealand Banking Group — Investor Presentation (June 2010) on 6ix