Anz Group Holdings Limited · ASX:ANZ
Anz — Debt Investor Presentation (February 2024)
33 slides from Anz's debt investor presentation, Feb 14, 2024
Slide 1: ANZ Capital Notes 9 Offer Investor Presentation
ANZ CAPITAL NOTES 9 OFFER INVESTOR PRESENTATION 14 FEBRUARY 2024 Approved for distribution by ANZ Group’s Continuous Disclosure Committee Australia and New Zealand Banking Group Limited 9/833 Collins Street Docklands Victoria 3008 Australia ABN 11 005 357 522
Slide 2: Disclaimer
ANZ Capital Notes 9 DISCLAIMER This presentation has been prepared by Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) ("ANZBGL") in connection with the offer (“Offer”) of ANZ Capital Notes 9 (“ANZ Capital Notes 9” or “Notes"). The Offer is being made under a prospectus (“Prospec
Slide 3: Contents
Offer Summary 3 CONTENTS FY23 Results and 1Q24 Update 10 Appendix 1- Key Terms 22 Appendix 2 – Key Dates And Contacts 29
Slide 4: Offer Summary
ANZ CAPITAL NOTES 9 OFFER SUMMARY
Slide 5: ANZ Capital Notes 9: Key Terms
ANZ Capital Notes 9 ANZ CAPITAL NOTES 9: KEY TERMS • Offer of ANZ Capital Notes 9 (“Notes”) by Australia and New Zealand Banking Group Limited (“ANZBGL”) Offer • Includes a Reinvestment Offer under which Eligible CN4 Holders can apply through their Syndicate Broker to reinvest the redemption proceed
Slide 6: Notes Convertible into Ordinary Shares of ANZGHL
ANZ Capital Notes 9 NOTES CONVERTIBLE INTO ORDINARY SHARES OF ANZGHL ON CONVERSION, HOLDERS WILL RECEIVE LISTED ORDINARY SHARES OF ANZGHL AS THE NON-OPERATING HOLDING COMPANY OF THE ANZ GROUP Prudential Regulation APRA adopts a tiered approach to the measurement of an ADI’s capital adequacy by asses
Slide 7: Summary of Optional Exchange Dates and Exchange Options
ANZ Capital Notes 9 SUMMARY OF OPTIONAL EXCHANGE DATES AND EXCHANGE OPTIONS The diagram below summarises certain events that may occur while the ANZ Capital Notes 9 are on issue, and what Holders may receive if those events occur. The events depend on a number of factors including ANZGHL’s share pri
Slide 8: Comparison to Other ANZ Capital Notes
ANZ Capital Notes 9 COMPARISON TO OTHER ANZ CAPITAL NOTES REINVESTMENT OF CN4 INTO NOTES IS NOT A SIMPLE ROLLOVER INTO A SIMILAR INVESTMENT. THE NOTES AND CN4 HAVE DIFFERENT RIGHTS, BENEFITS AND RISKS WHICH MUST BE EVALUATED SEPARATELY ANZ Capital Notes 9 ANZ Capital Notes 8 ANZ Capital Notes 4 ASX
Slide 9: Options for Eligible CN4 Holders
ANZ Capital Notes 9 OPTIONS FOR ELIGIBLE CN4 HOLDERS1 ANZBGL HAS ISSUED A REDEMPTION NOTICE FOR CN42 Option Description Required Eligible CN4 Holder action Reinvestment Offer 1 • Apply through a Syndicate Broker • Apply to participate in the Reinvestment • Applications can only be made by: Reinvest
Slide 10: Offer Structure and Notes Target Market
ANZ Capital Notes 9 OFFER STRUCTURE AND NOTES TARGET MARKET All Applications for Notes must be from: • an Institutional Investor; or • a client of a Syndicate Broker who is either: Applications • a Wholesale Investor; or • a Retail Investor within the Notes Target Market who has received personal ad
Slide 11: FY23 Results and 1Q24 Update
ANZ CAPITAL NOTES 9 FY23 RESULTS AND 1Q24 UPDATE
Slide 12: Summary - 2024 First Quarter (1Q24)
ANZ Capital Notes 9 SUMMARY - 2024 FIRST QUARTER (1Q24)1 ANZ Group • 1Q24 ANZ Group revenue was in line with the First Half FY23 quarterly average (1H23QA $5.26b) with Non-Markets revenue broadly in line with the First Half performance FY23 average (1H23QA $4.69b), assisted by growth in average inte
Slide 13: 1Q24 Capital, Liquidity, Funding
ANZ Capital Notes 9 1Q24 CAPITAL, LIQUIDITY, FUNDING1 ANZBGL’s APRA Level 2 CET1 ratio – 1Q24 capital movement % 13.34 0.42 13.06 -0.06 -0.64 0.04 11.86 -1.24 Sep 23 Underlying Capital Generation FY23 Final Dec 23 Suncorp NOHC surplus Dec 23 RWA growth2 & Other Dividend Acquisition Pro forma (Net of
Slide 14: FY23 ANZ Group Financial Results
ANZ Capital Notes 9 FY23 ANZ GROUP FINANCIAL RESULTS FY23 vs FY22 Statutory profit, $ million 7,098 Flat Cash Profit Continuing operations, $ million Revenue 20,893 +13% Cash Profit 7,405 +14% Return on equity, % 10.9% +54 bps Earnings per share - basic, cents 247.1 +8% Dividend per share1, cents 17
Slide 15: ANZGHL Balance Sheet Structure
ANZ Capital Notes 9 ANZGHL BALANCE SHEET STRUCTURE1 NSFR movement, % Pro forma NSFR is ~115.4% once RSF benefit Balance sheet composition, Sep 23 associated with TFF is removed 118.6 0.8 0.2 0.4 116.3 Offshore Short Term W’sale Debt 3% -2.1 -0.1 Domestic Short Term -1.5 Wholesale Debt and Liquid and
Slide 16: ANZ Group Capital
ANZ Capital Notes 9 ANZ GROUP CAPITAL ANZ Group Capital Composition, $b ANZ Bank Group Key Capital Ratios (%) Sep 22 Mar 231 Sep 23 1 Level 2 CET1 capital ratio 12.3 13.2 13.3 90.6 91.9 CET1 Composition 82.8 Level 2 CET1 HoH mvmt +76 bps +89 bps +16 bps 0.7 72.8 0.2 Level 2 CET1 capital ratio (pro f
Slide 17: Regulatory Capital – Risk Weighted Assets
ANZ Capital Notes 9 REGULATORY CAPITAL – RISK WEIGHTED ASSETS Risk weighted assets – Level 2, $b Total Credit RWA increase $3.7b 435.5 0.7 436.2 0.4 3.7 0.0 433.3 -1.1 -1.6 -4.3 Mar 23 CRWA FX impacts Mar 23 Divisional Lending Risk Impacts Other CRWA impacts Operational Market Risk & IRRBB IRB Floor
Slide 18: Regulatory Capital
ANZ Capital Notes 9 REGULATORY CAPITAL THE ANZBGL LEVEL 2 GROUP’S SEPTEMBER 2023 AND DECEMBER 2023 CAPITAL RATIOS WITH PRO FORMA ADJUSTMENTS FOR THE CN4 REDEMPTION, ISSUE OF $1BN OF NOTES AND COMPLETION OF THE SUNCORP TRANSACTION ANZBGL’s summarised consolidated capital adequacy ratios as at 31 Dece
Slide 19: AT1 Distributions and Conversion Trigger Protection
ANZ Capital Notes 9 AT1 DISTRIBUTIONS AND CONVERSION TRIGGER PROTECTION ANZBGL’S CET1 CAPITAL POSITION AND STRONG EARNINGS PROVIDE BUFFERS FOR AT1 INVESTORS CET1 Capital & Combined Capital Buffer Actions available to strengthen capital Indicative buffers as at 31 December 20231 (post Capital Reform)
Slide 20: AT1 Distribution Protections
ANZ Capital Notes 9 AT1 DISTRIBUTION PROTECTIONS ANZBGL’S CET1 CAPITAL POSITION AND STRONG EARNINGS PROVIDE BUFFERS FOR AT1 INVESTORS Level 1 CET11, % CET1 Ratio 14 • AT1 distributions may be progressively restricted if ANZBGL’s CET1 capital ratio drops to or 12 below APRA’s minimum capital requirem
Slide 21: Consistent Approach to AT1 Issuance: Size and Maturities
ANZ Capital Notes 9 CONSISTENT APPROACH TO AT1 ISSUANCE: SIZE AND MATURITIES AT1 First Call date profile2, Notional amount A$b ANZBGL’s near term AT1 requirements primarily driven by its scheduled maturity profile: • AT1 currently on issue exceeds requirements • RWA reductions since last issue in 20
Slide 22: Past Performance of ANZ Securities
ANZ Capital Notes 9 PAST PERFORMANCE OF ANZ SECURITIES AVERAGE TRADING PRICES OF SELECTED ANZ CAPITAL SECURITIES COMPARED TO AN ADJUSTED ANZ ORDINARY SHARE PRICE 1 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
Slide 23: Appendix 1: Key Terms
ANZ CAPITAL NOTES 9 APPENDIX 1: KEY TERMS
Slide 24: Key Terms: Offer Summary
ANZ Capital Notes 9 KEY TERMS: OFFER SUMMARY • Offer of ANZ Capital Notes 9 (“Notes”) by Australia and New Zealand Banking Group Limited (“ANZ”) Offer • Includes a Reinvestment Offer under which Eligible CN4 Holders can apply through their Syndicate Broker to reinvest the redemption proceeds of some
Slide 25: Key Terms: Distributions
ANZ Capital Notes 9 KEY TERMS: DISTRIBUTIONS • Non-cumulative based on a floating rate (3-Month BBSW) • Expected to be franked at the same rate as dividends on ANZGHL Ordinary Shares1 • If a Distribution is not franked or only partially franked, the amount of the cash Distribution will be increased
Slide 26: Key Terms: Mandatory Conversion Date
ANZ Capital Notes 9 KEY TERMS: MANDATORY CONVERSION DATE • On 20 September 2033 (Mandatory Conversion Date), subject to satisfaction of the Mandatory Conversion Conditions, the Notes will mandatorily Convert into a variable number of ANZGHL Ordinary Shares at a 1% discount to the 20 business day VWA
Slide 27: Key Terms: Mandatory Conversion Trigger Event
ANZ Capital Notes 9 KEY TERMS: MANDATORY CONVERSION TRIGGER EVENT Trigger Event • Means a Common Equity Capital Trigger Event or Non-Viability Trigger Event Common Equity • ANZBGL determines, or APRA has notified ANZBGL in writing that it believes, that a Common Equity Capital Ratio of the ANZBGL Le
Slide 28: Key Terms: Early Redemption, Conversion and Resale Rights
ANZ Capital Notes 9 KEY TERMS: EARLY REDEMPTION, CONVERSION AND RESALE RIGHTS ANZBGL Early • ANZBGL may choose to Exchange all or some Notes on issue on 20 March 2031, 20 June 2031 or 19 September 2031, subject to APRA approval Redemption Option Regulatory or Tax Event • ANZBGL may choose to Exchang
Slide 29: Key Terms: What Happens Post a Trigger Event
ANZ Capital Notes 9 KEY TERMS: WHAT HAPPENS POST A TRIGGER EVENT 1 A Common Equity Capital Trigger Event or Non-Viability Trigger Event occurs 2 ANZGHL Ordinary Shares can be issued? No Written off up to required amount of CET11 Yes 2a Notes Convert to ANZGHL Ordinary Shares up to required amount of
Slide 30: Appendix 2: Key Dates and Contacts
ANZ CAPITAL NOTES 9 APPENDIX 2: KEY DATES AND CONTACTS
Slide 31: Key Dates: CN9 Offer
ANZ Capital Notes 9 KEY DATES: CN9 OFFER1 Record Date for determining Eligible CN4 Holders for the Reinvestment Offer 7:00pm on 8 February 2024 (relevant CN4 must also be held on the Closing Date for the Reinvestment Offer) Lodgement of the Prospectus with ASIC 14 February 2024 Bookbuild to determin
Slide 32: Key Dates: CN4 Holders
ANZ Capital Notes 9 KEY DATES: CN4 HOLDERS1 Record date for determining Eligible CN4 Holders for the Reinvestment Offer 7.00pm on 8 February 2024 (relevant CN4 must also be held on the Closing Date for the Reinvestment Offer) Redemption notice given in respect of CN4 14 February 2024 Last day of tra
Slide 33: Key Contacts
ANZ Capital Notes 9 KEY CONTACTS ANZ Group Treasury 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 David Goode +61 410 495 399 David.Goode@anz.com Senior Manager, C
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