Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (August 2017)
25 slides from Anz's debt investor presentation, Aug 16, 2017
Slide 1: ANZ Capital Notes 5 Offer
For personal use only ANZ CAPITAL NOTES 5 OFFER AUSTRALIA AND NEW ZEALAND AUSTRALIA AND NEW BANKING GROUP ZEALAND LIMITED BANKING GROUP (ABN 11 005 LIMITED 357 522) (ABN 11 005 357 16 August 2017 522) 16 August 2017 Not for distribution into the United States
Slide 2: Contents
CONTENTS For personal use only OFFER SUMMARY 3 ANZ Q3 17 TRADING UPDATE, 1H 17 EARNINGS AND CAPITAL UPDATE 8 APPENDIX 1- KEY TERMS 14 APPENDIX 2 – KEY DATES 21 KEY CONTACTS AND DISCLAIMER 24 2 Not for distribution into the United States
Slide 3: ANZ Capital Notes 5: Key Terms
A N Z C A P I TA L N O T E S 5 : K E Y T E R M S ● Offer by Australia and New Zealand Banking Group Limited (“ANZ”) of ANZ Capital Notes 5 (“Notes”) – Mandatorily Convertible into Ordinary Shares Offer ● Includes an offer to Eligible CPS3 Holders to sell their CPS3 through a Buy-Back Facility and to
Slide 4: Comparison to Other ANZ Capital Notes
C O M PA R I S O N T O O T H E R A N Z C A P I TA L N O T E S Reinvestment of CPS3 into Notes is not a simple rollover into a similar investment. The Notes and CPS3 have different rights, benefits and risks which must be evaluated separately For personal use only ANZ Capital Notes 5 ANZ Capital Note
Slide 5: Options for Eligible CPS3 Holders
OPTIONS FOR ELIGIBLE CPS3 HOLDERS For personal use only Option Description Required Eligible CPS3 Holder action 1 • Apply to participate in the Buy-Back • Apply to reinvest the Buy-Back Price in Reinvest into Buy-Back Facility Facility and reinvest the Buy-Back Notes under either: ANZ Capital Price
Slide 6: Offer Structure
OFFER STRUCTURE1 Process Purpose Participants 16 August For personal use only Determine margin and allocation to Eligible CPS3 Holders Broker Firm Eligible CPS3 who are clients of Reinvestment Holders in the Broker Syndicate Brokers or Offer Firm Reinvestment Institutional Investors Bookbuild2 Offer
Slide 7: Buy-Back Facility for CPS3 Holders
B U Y- B A C K FA C I L I T Y F O R C P S 3 H O L D E R S ● The Buy-Back Facility is a facility under which Eligible CPS3 Holders may apply to sell some or all of For personal use only What is the Buy-Back their CPS3 and reinvest the Buy-Back Price in Notes or receive the Buy-Back Price in cash. Fac
Slide 8: Q3 Trading Update
3 Q 1 7 T R A D I N G U P D AT E Comparisons are Cash Profit1 based and for the third quarter Financial Year 2017 to 30 June to the average of the first two quarters of For personal use only Financial Year 2017 unless otherwise noted. • Cash Profit was $1.79 billion (up 5.3%). Profit Before Provisio
Slide 9: Financial Performance
FINANCIAL PERFORMANCE STATUTORY PROFIT CASH PROFIT ADJUSTED PRO-FORMA PROFIT For personal use only $m $m $m 2,738 2,911 3,411 3,637 2,782 3,224 +6% +23% +13% +$173m +629m +413m 1H16 1H17 1H16 1H17 1H16 1H17 Statutory Profit movement Cash Profit movement Adjusted pro-forma movement $629m cash profit
Slide 10: Regulatory Capital
R E G U L AT O RY C A P I TA L CAPITAL POSITION (AS AT JUNE 2017) CAPITAL OUTLOOK For personal use only • ANZ’s Common Equity Tier-1 (CET1) ratios at Level 1 and • Announced but not yet completed asset sales (Asia Retail and Wealth Level 2 were 9.6% and 9.8% respectively. business, SRCB and UDC Fina
Slide 11: AT1 Distributions and Conversion Trigger Protection
AT 1 D I S T R I B U T I O N S A N D C O N V E R S I O N 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 Maximum
Slide 12: AT1 Distribution Protections
AT 1 D I S T R I B U T I O N P R O T E C T I O N S ANZ’s CET1 capital position and strong earnings provide buffers for AT1 investors • AT1 distributions may be progressively restricted if ANZ LEVEL 1 SURPLUS CET1 OVER 8%: $6.1 BILLION For personal use only allows the CET1 ratio to drop below APRA’s
Slide 13: Near Term AT1 Supply Is Expected to Be Limited
N E A R T E R M AT 1 S U P P LY I S E X P E C T E D T O BE LIMITED For personal use only • ANZ’s near term AT1 requirements are expected to be limited • AT1 currently on issue exceeds requirements • ANZ may take into account a number of factors when determining how it will deal with the CPS3 not bou
Slide 14: Appendix 1: Key Terms
For personal use only APPENDIX 1: KEY TERMS Not for distribution into the United States
Slide 15: Terms: Offer Summary
K E Y T E R M S : O F F E R S U M M A RY For personal use only ● Offer by Australia and New Zealand Banking Group Limited (“ANZ”) of ANZ Capital Notes 5 (“Notes”) – Mandatorily Convertible into Ordinary Shares Offer ● Includes an offer to Eligible CPS3 Holders to sell their CPS3 through a Buy-Back F
Slide 16: Key Terms: Distributions
KEY TERMS: DISTRIBUTIONS For personal use only ● Non-cumulative based on a floating rate (90 Day BBSW) ● Expected to be fully or substantially franked ● If a Distribution is not fully franked, the cash amount of the Distribution will be increased to compensate holders for the unfranked portion of th
Slide 17: Terms: Mandatory Conversion
K E Y T E R M S : M A N D AT O RY C O N V E R S I O N D AT E For personal use only Mandatory Conversion ● On 20 March 2027 (“Mandatory Conversion Date”), subject to satisfaction of the Mandatory Conversion Conditions, the Notes will mandatorily Convert into a variable number of ANZ Ordinary Shares a
Slide 18: Terms: Mandatory Conversion, Trigger Event
K E Y T E R M S : M A N D AT O RY C O N V E R S I O N 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
Slide 19: Terms: Early Redemption, Conversion and Resale Rights
K E Y T E R M S : E A R LY R E D E M P T I O N , CONVERSION AND RESALE RIGHTS For personal use only Optional Exchange ● ANZ may choose to Exchange all or some Notes on issue on 20 March 2025 Date Regulatory or Tax ● ANZ may choose to Exchange all or some Notes if a Regulatory Event or a Tax Event oc
Slide 20: Terms: What Happens Post a Trigger Event
K E Y T E R M S : W H AT H A P P E N S P O S T A TRIGGER EVENT For personal use only 1 A Common Equity Capital or Non-Viability Trigger Event occurs 2 Can Ordinary Shares be issued? No Basel III AT1 written off up to required amount of CET11 Yes 2a Notes Convert to Ordinary Shares up to required amo
Slide 21: Appendix 2: Key Dates and Contacts
For personal use only APPENDIX 2: KEY DATES AND CONTACTS Not for distribution into the United States
Slide 22: Dates: CN Offer
K E Y D AT E S : C N 5 O F F E R 1 Record Date 11 August 2017 For personal use only Lodgement of the Prospectus with ASIC 16 August 2017 Broker Firm Reinvestment Offer Bookbuild to determine the Margin 23 August 2017 Lodgement of the replacement prospectus with ASIC 24 August 2017 Opening Date for A
Slide 23: Dates: CPS Holders
K E Y D AT E S : C P S 3 H O L D E R S 1 For personal use only Record Date 11 August 2017 Opening Date for the Buy-Back Facility 24 August 2017 Closing Date for the Buy-Back Facility 5:00pm AET on 13 September 2017 Expected record date for the Pro Rata Dividend 20 September 2017 Buy-Back Date 26 Sep
Slide 24: Contacts
K E Y C O N TA C T S ANZ Group Treasury For personal use only Group Treasurer Rick Moscati +61 (3) 8654 5404 Rick.Moscati@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
Slide 25: Disclaimer
Disclaimer Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) ("ANZ") is the issuer of the ANZ Capital Notes 5 (“ANZ Capital Notes 5” or “Notes"). For personal use only A public offer of the Notes will be made by ANZ pursuant to a Prospectus under Part 6D.2 of the Corporations Act.
Australia and New Zealand Banking Group — Debt Investor Presentation (August 2017) on 6ix