Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (June 2021)
31 slides from Anz's debt investor presentation, Jun 1, 2021
Slide 1: News Release: ANZ Capital Notes 6 Investor Presentation
News Release For Release: 1 June 2021 For personal use only ANZ Capital Notes 6 Investor Presentation Attached is an investor presentation released today by ANZ relating to its offer of ANZ Capital Notes 6. Investors who wish to apply for ANZ Capital Notes 6 should read the ANZ Capital Notes 6 prosp
Slide 2: ANZ Capital Notes 6
For personal use only ANZ CAPITAL NOTES 6 1 JUNE 2021 AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED (ABN 11 005 357 522)
Slide 3: Contents
CONTENTS For personal use only OFFER SUMMARY 2 ANZ 1H21 RESULTS AND CAPITAL UPDATE 6 APPENDIX 1- KEY TERMS 18 APPENDIX 2 – KEY DATES 26 KEY CONTACTS AND DISCLAIMER 28 1
Slide 4: ANZ Capital Notes 6: Key Terms
ANZ CAPITAL NOTES 6: KEY TERMS ● Offer of ANZ Capital Notes 6 (“Notes”) by Australia and New Zealand Banking Group Limited (“ANZ”) For personal use only Offer ● Includes a Reinvestment Offer under which Eligible CN1 Holders can apply to reinvest some or all of their CN1 in Notes Offer size ● $1 bill
Slide 5: Summary of Optional Exchange Dates
SUMMARY OF OPTIONAL EXCHANGE DATES For personal use only The diagram below summarises certain events that may occur while the ANZ Capital Notes 6 are on issue, and what Holders may receive if those events occur. The events depend on a number of factors including ANZ’s share price, the occurrence of
Slide 6: Comparison to Other ANZ Capital Notes
COMPARISON TO OTHER ANZ CAPITAL NOTES REINVESTMENT OF CN1 INTO NOTES IS NOT A SIMPLE ROLLOVER INTO A SIMILAR INVESTMENT. THE NOTES AND CN1 HAVE DIFFERENT RIGHTS, BENEFITS AND RISKS WHICH MUST BE EVALUATED SEPARATELY For personal use only ANZ Capital Notes 6 ANZ Capital Notes 5 ANZ Capital Notes 1 AS
Slide 7: Options for Eligible CN1 Holders
OPTIONS FOR ELIGIBLE CN1 HOLDERS Required Eligible CN1 Holder Option Description For personal use only action Reinvestment 1 • Apply to participate in the • Apply: Reinvest CN1 Reinvestment Offer and reinvest into ANZ Capital Offer some or all of the CN1 into • at www.capitalnotes6.anz.com; or Notes
Slide 8: 1H21 Results Update
For personal use only 1H21 RESULTS UPDATE
Slide 9: Financial Overview
FINANCIAL OVERVIEW For personal use only 1H21 1H21 v 2H20 Statutory Profit ($m) 2,943 +45% Cash Profit (continuing operations)1 ($m) 2,990 +28% Return on Equity (%) 9.7 +206bps Earnings Per Share (cents) 105.3 +27% Cash Profit (continuing operations) ex large / notable items ($m) 3,807 +33% Dividend
Slide 10: Financial Performance
FINANCIAL PERFORMANCE CONTINUING OPERATIONS For personal use only GROUP PROFIT DRIVERS $m 1,552 CONTINUING OPERATIONS 1H21 v 2H20 2,990 Income PBP NPAT -423 Total Group ex Large / Notable -3% -4% 33% Australia Retail & Commercial 2% 5% 72% 2,345 Institutional -18% -29% -25% 243 Institutional (ex Mar
Slide 11: Net Interest Margin
NET INTEREST MARGIN CONTINUING OPERATIONS For personal use only GROUP NET INTEREST MARGIN (NIM) bps 4 163 In line with commentary at -1 FY20 & 1Q21 Institutional +3 4 160 Australia R&C -1 157 3 2 -3 Deposit / funding mix +3 -3 Replicating portfolio +1 Asset mix -1 Higher liquid (incl. Home Loan VR t
Slide 12: Provision Charge & Balance
PROVISION CHARGE & BALANCE CONTINUING OPERATIONS For personal use only TOTAL PROVISION CHARGE COLLECTIVE PROVISION BALANCE MOVEMENT $m Loss rates (%) 1H19 2H19 1H20 2H20 1H21 IP / Avg GLA1 0.12 0.13 0.20 0.12 0.06 2 CP charge / (release) -678 Total charge/(release) / Avg GLA 0.13 0.13 0.53 0.33 -0.1
Slide 13: Balance Sheet Structure
BALANCE SHEET STRUCTURE1 For personal use only BALANCE SHEET COMPOSITION NSFR COMPOSITION Mar-21 Mar-21 $b 548 Wholesale Funding3 & Other4 454 Liquids Short Term Wholesale Debt & Non-Financial Corporates and Other Assets5 Other Funding2 Other Liquid and Other Assets 24% (+1% HoH) Loans6 34% (+1% HoH
Slide 14: Liquidity Coverage Ratio (LCR) Summary
LIQUIDITY COVERAGE RATIO (LCR) SUMMARY1 For personal use only LCR COMPOSITION (AVERAGE) MOVEMENT IN AVERAGE LCR SURPLUS3 1H21 $b $b 223 2H20 1H21 Internal RMBS Avg. LCR 139% Avg. LCR 138% Other ALA2 17 HQLA2 1 61 61 -2 -2 -2 -12 162 Wholesale funding HQLA1 Customer deposits & other3 Liquid Assets Ne
Slide 15: Regulatory Capital
REGULATORY CAPITAL For personal use only CAPITAL UPDATE APRA LEVEL 2 COMMON EQUITY TIER 1 RATIO (CET1) Level 2 CET1 ratio of 12.4%, which is well in excess of ‘Unquestionably Strong’ % benchmark1 Benefits from credit impairment charge of +14bps, following $678m of CP release, partly offset by $1
Slide 16: AT1 Distributions and Conversion Trigger Protection
AT1 DISTRIBUTIONS AND CONVERSION TRIGGER PROTECTION ANZ’S CET1 CAPITAL POSITION AND STRONG EARNINGS PROVIDE BUFFERS FOR AT1 INVESTORS For personal use only Basel 3 CET1 Capital & Actions available to strengthen capital Indicative buffers2 Capital Conservation Buffers1 A$bn Maximum % RWA Management D
Slide 17: AT1 Distribution Protections
AT1 DISTRIBUTION PROTECTIONS ANZ’S CET1 CAPITAL POSITION AND STRONG EARNINGS PROVIDE BUFFERS FOR AT1 INVESTORS For personal use only • AT1 distributions may be progressively restricted if ANZ allows the CET1 LEVEL 1 SURPLUS CET1 OVER 8%: $15.8 BILLION ratio to drop below APRA’s minimum plus prescrib
Slide 18: Consistent Approach to AT1 Issuance: Size and Maturities
CONSISTENT APPROACH TO AT1 ISSUANCE: SIZE AND MATURITIES For personal use only • ANZ’s near term AT1 requirements primarily driven by our scheduled maturity profile • AT1 currently on issue exceeds requirements • Modest RWA growth since last issue in 2017 (Q3 2017 RWA of $405bn versus 1H21 of $408bn
Slide 19: Past Performance of ANZ Securities
PAST PERFORMANCE OF ANZ SECURITIES TRADING PRICES OF SELECTED ANZ CAPITAL SECURITIES COMPARED TO AN ADJUSTED ANZ ORDINARY SHARE PRICE For personal use only Trading Price ($) 140 130 120 110 100 90 80 70 60 50 40 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 201
Slide 20: Appendix 1: Key Terms
For personal use only APPENDIX 1: KEY TERMS
Slide 21: Key Terms: Offer Summary
KEY TERMS: OFFER SUMMARY ● Offer of ANZ Capital Notes 6 (“Notes”) by Australia and New Zealand Banking Group Limited (“ANZ”) – For personal use only Mandatorily Convertible into Ordinary Shares Offer ● Includes a Reinvestment Offer under which Eligible CN1 Holders can apply to reinvest some or all o
Slide 22: Key Terms: Distributions
KEY TERMS: DISTRIBUTIONS For personal use only ● Non-cumulative based on a floating rate (3-Month BBSW) ● Expected to be franked to the same level as Ordinary Shares1 ● If a Distribution is not fully franked, the cash amount of the Distribution will be increased to compensate holders for the unfrank
Slide 23: Key Terms: Mandatory Conversion Date
KEY TERMS: MANDATORY CONVERSION DATE For personal use only Mandatory ● On 20 September 2030 (“Mandatory Conversion Date”), subject to satisfaction of the Mandatory Conversion Conversion Conditions, the Notes will mandatorily Convert into a variable number of ANZ Ordinary Shares at a 1% discount to t
Slide 24: Key Terms: Mandatory Conversion Trigger Event
KEY TERMS: MANDATORY CONVERSION TRIGGER EVENT For personal use only Trigger Event ● Means a Common Equity Capital Trigger Event or Non-Viability Trigger Event Common Equity ● ANZ determines, or APRA has notified ANZ in writing that it believes, that ANZ’s Common Equity Capital Capital Trigger Event
Slide 25: Key Terms: Early Redemption, Conversion and Resale Rights
KEY TERMS: EARLY REDEMPTION, CONVERSION AND RESALE RIGHTS For personal use only ANZ Early Redemption ● ANZ may choose to Exchange all or some Notes on issue on 20 March 2028, 20 June 2028 or Option 20 September 2028 Regulatory or Tax ● ANZ may choose to Exchange all or some Notes if a Regulatory Eve
Slide 26: Key Terms: What Happens Post a Trigger Event
KEY TERMS: WHAT HAPPENS POST A TRIGGER EVENT For personal use only 1 A Common Equity Capital or Non-Viability Trigger Event occurs 2 Ordinary Shares can be issued? No Written off up to required amount of CET11 Yes 2a Notes Convert to Ordinary Shares up to required amount of CET11: Outstanding princi
Slide 27: Appendix 2: Key Dates and Contacts
For personal use only APPENDIX 2: KEY DATES AND CONTACTS
Slide 28: Key Dates: CN6 Offer
KEY DATES: CN6 OFFER1 For personal use only Record Date for determining Eligible ANZ Securityholders 7:00pm AEST on 27 May 2021 Lodgement of the Prospectus with ASIC 1 June 2021 Bookbuild to determine the Margin 8 June 2021 Lodgement of the replacement prospectus with ASIC 9 June 2021 Opening Date 9
Slide 29: Key Dates: CN1 Holders
KEY DATES: CN1 HOLDERS1 For personal use only Record date for determining Eligible CN1 Holders for the Reinvestment Offer (relevant CN1 must also be held on the Closing Date for the Reinvestment 7.00pm AEST on 27 May 2021 Offer) Opening Date for the Reinvestment Offer 9 June 2021 Closing Date for th
Slide 30: Key Contacts
KEY CONTACTS ANZ Group Treasury For personal use only Group Treasurer Adrian Went +61 (3) 8654 5532 Adrian.Went@anz.com Head of Capital & Structured Funding John Needham +61 (2) 8037 0670 John.Needham@anz.com Head of Debt Investor Relations Scott Gifford +61 (3) 8655 5683 Scott.Gifford@anz.com Senio
Slide 31: Disclaimer
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 the For personal use only ANZ Capital Notes 6 (“ANZ Capital Notes 6” or “Notes"). The Offer is being made under a prospectus (“Pros
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