Anz Group Holdings Limited · ASX:ANZ
Anz — Investor Presentation (July 2006)
23 slides from Anz's investor presentation, Jul 28, 2006
Slide 1: Division Discussion Pack
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Slide 2: Personal Division Overview
Personal Division Overview Strong Divisional Revenue Product business growth driving 1H06* performance* performance 16% Mortgages Consumer Finance 7% -I&1 18% Banking 0, Products 12% ' y y ' | Regional & 0 NPAT _ Rural 12% *growth Mar06 v Mer05, 3 Note; Esanda, Pacific and Smail Business effective M
Slide 3: Success in Personal due to an effective business system
Success in Personal due to an effective business system “More . Convenient Banking” A ist
Slide 4: Strategy starts with clear segmentation
Strategy starts with clear segmentation Price Driven Service Driven , Premium e ANZ brand for non-price driven segments e Use other brands Prime for other segments e Defend share via price where necessary Emerging Prime Sub Prime Un-banked A 3 a 4
Slide 5: 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 customers ; People bank with Straightforward fees increasingly . “time poor” ~ ANZ Staff engaged looking for (and not convenient, somebody simple e
Slide 6: Success in Personal due to an effective business system
Success in Personal due to an effective business system Pinancial-~ Performance, uss a a Ss “More Convenient Strategy - Customers a \
Slide 7: 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 (up 13%) 53% 33% 1HO6 1HO4 1HO6
Slide 8: .. 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 ANZ?”) across the Personal Division 66% 100% 7 mom POSiti ve Responses Negative Responses 80% 4 88% 60% 4 Personal ANZ Group Banking Division Benchmark 57% 40% 4 Bran
Slide 9: Success in Personal due to an effective business system
Success in Personal due to an effective business system . “Strategy Pinancial-~ Performance, uss a a SN “More Employeas Convenient Banking” Customers a \
Slide 10: 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
Slide 11: Expanding distribution to improve convenience
Expanding distribution to improve convenience New Branches and ATMs 8007. r 1,800 780 4 r 1,650 rF 1,500 760 4 r 1,350 740 7 f 1,200 720 | 1,050 700 - 900 Sep-04 Mar-05 Sep-05 Mar-06 vam Branches (LHS) ATMs (RHS) Ms Target: 80 new branches by 2007 ae MFG 8 i line
Slide 12: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy. Financial Performances a Ss “More -g. Convenient smers\ Banking” Distributio
Slide 13: "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 my | testes
Slide 14: ..Which drives future acquisition and retention
..Which drives future acquisition and retention Improved “Trial Intention” (Day to Day Transaction Accounts*) Lowest propensity to defect* % 259 50% J 204 40% 4 30% 7 10 | 20% 4 5 T T T T T T 10% T T T T 1 Sep- Dec- Mar- jJun-O05 Sep- Dec- Mar- Sep-02 Sep-03 Sep-04 Mar-05 Sep-05 04 04 05 05 05 06 ee
Slide 15: Success in Personal due to an effective business system
Success in Personal due to an effective business system Convenient Banking”
Slide 16: Highest customer satisfaction of any major bank, and closed gap on Regionals...
Highest customer satisfaction of any major bank, and closed gap on Regionals... Overall customer satisfaction (Main Financial Institution* ) 50 T T T T T T ¥ T r T T r T ¥ r T T T T oO N NS J ive) D fon) oO o bad col N a oy isa t t wn ita) oO & O FF FFF 6 8 6 FF 96 F 8 oO GE 9 BS Qa & a §& a &§ oO £
Slide 17: ..leading to higher share of wallet and market share
..leading to higher share of wallet and market share Share of wallet Market Share Gap (traditional banking products*) Tight peer range 8.1% 14.3% 14.2% ANZ Peer Ave. Mar-03 Mar-04 Mar-05 Mar-06 fl Mar-04 ti Mar-06 ANZ @# 2 peer oS muggy *Source: Roy Morgan Research ~ Traditional Banking ave. 12 mont
Slide 18: Success in Personal due to an effective business system
Success in Personal due to an effective business system “Strategy “More sex Convenient Customers Banking — \ ein oS
Slide 19: Non price led strategy delivering attractive growth...
Non price led strategy delivering attractive growth... Retail Deposits - FUM Growth v Margin 7% 4 6% 4 < 5% 4 x = 4% 4 3 £ 1c) = 3%7 = ic 2% | Si a 0% T T T T ‘ 1 0.00% 0.20% 0.40% 0.60% Note ~ size indicates Net Interest Income contribution of net growth (i.e. growth (A$b) x margin) 0.80% 1.00% 1.2
Slide 20: .. resulting in sustainable revenue and profit growth
.. resulting in sustainable revenue and profit growth Actively managing the Revenue/ Cost “jaws”... 11.5% 3% ..is delivering strong profit momentum (pep) 15.9% 12.4% 12.7% 1HO5 2HO5 1HO6 2H05 1H06 “Income Growth & Expense Growth “pep growth 1HOG AIFRS, 1HOS & 2HO5 AGAAP 20
Slide 21: Growth varies significantly by State, and product
Growth varies significantly by State, and product 25% 20% 15% 10% 5% 0% Mortgage Fum Growth Sep-05 to June-06 annualised 24% 17% NSW QLD VIC / TAS SA WA Small Business Banking* - total FUM 60% 50% 40% 30% 20% 10% 0% 12 months to June 06 53.0% QLD VIC / TAS SA WA Retail Deposit Growth Sep-05 to June-
Slide 22: Summary
Summary ¢ No “silver bullet” explains ANZ’s Retail Banking success ¢ 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 AS Ny Jet omar 35 A
Slide 23: The material in this presentation is general background information
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
ANZ Group Holdings — Investor Presentation (July 2006) on 6ix