Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (September 2003)
173 slides from Anz's debt investor presentation, Sep 11, 2003
Slide 1: ANZ Stapled Exchangeable Preferred Securities (ANZ StEPS)
Slide 2: Today’s presentation
Today’s presentation 2. ANZ - Update on operations and strategy 3. ANZ - Effect of the issue 4. Offer structure 5. Bookbuild process 6. Supplementary information EPS Presentation
Slide 3: Offer summary
Offer summary * ANZ Stapled Exchangeable Preferred Securities (ANZ StEPS) ° Offer of up to $750m with ability to accept oversubscriptions of up to $250m * Floating rate securities paying a distribution set at a margin over the 90 day bank bill rate e Issue credit rating -*A~’ by Standard & Poor's -*
Slide 4: Today’s presentation
Today’s presentation 1. Offer summary 3. ANZ - Effect of the issue 4. Offer structure 5. Bookbuild process 6. Supplementary information
Slide 5: Delivering sustainable profit growth
Delivering sustainable profit growth 2003 interim results + NPAT $1,141m + EPS 72 cents + Cash EPS 74 cents + Interim dividend 44 cents Net specific provisions $259m $1,141m EPS 72 cents Cash EPS 74 cents EPS Presentation A track record of strong NPAT sia ae 1341 a = . pepe eg ees 2SFR FR ERE * Excl
Slide 6: A diversified portfolio performing well
A diversified portfolio performing well Mar03 Mar02 Change Institutional Banking 145 119 22% 41° half NPAT $m Personal Banking 137. 121 13% Mortgages 131 123 7% Transaction Services 84 76 11% SME 78 65 20% New Zealand 74 61 21% Asia Pacific 67 45 49% Asset Finance 60 48 25% Corporate Banking SSMS Cn
Slide 7: On track in the second half
On track in the second half * Consumer Finance - back on track *° Corporate & SME - performing well, lending growth of 13% YTD ° New Zealand - relatively flat * Mortgages - strong lending growth continues, up 17% YTD ° Asset Finance — positive momentum continues * Personal Banking - good deposit gro
Slide 8: Outlook for 2004
Outlook for 2004 Planning for 2004 not finalised, however most business units continue to perform well * Some external challenges in 2004 - Credit card interchange - Unfavourable interest rate environment - Strong $A - Softening housing outlook * Despite these challenges, we expect EPS growth to rem
Slide 9: Distinctive strategy and track record
Distinctive strategy and track record Four themes going forward ANZ relative TSR TSR Leverage real capabilities to build sustainable strategic position (base $100) $1,200 Grow value by creating a rich portfolio of specialised businesses $0 Become one of the most efficient and best-managed banks in t
Slide 10: Today’s presentation
Today’s presentation 1. Offer summary 2. ANZ - Update on operations and strategy 4. Offer structure 5. Bookbuild process 6. Supplementary information
Slide 11: ‘AA’ category rating supported by strong capital position
cE ‘AA’ category rating supported by strong capital position 5.71 Sep-02 Drivers of ACE ratio Peer Comparison Earnings Dividend % ACE/RWA 0.77 (0.47) Bet) RWA 5.75 Other growth 0.04 SES) or) 5.50 5.68 5.25 Target range 5.00 4.75 4.50 4.25 4.00 Mar-03 ANZ CBA NAB WBC. (Mar- (Dec- (Mar- (Mar- 03) 02)
Slide 12: Pro forma regulatory capital position
Pro forma regulatory capital position * Issue forms part of ANZ’s ongoing capital management program and = Will strengthen ANZ’s balance sheet = Will increase financial flexibility — May be used to buy-back or redeem Series 1 and Series 2 TrUEPrS, or ~ May be used for other purposes e APRA has class
Slide 13: Today’s presentation
Today’s presentation 1. Offer summary 2. ANZ - Update on operations and strategy 3. ANZ - Effect of the issue 5. Bookbuild process 6. Supplementary information
Slide 14: Offer structure - key terms
Offer structure - key terms * ANZ StEPS — a stapled security comprising ~ Interest paying note issued by ANZ (NZ) ~ Preference share issued by ANZ which does not pay dividends while ‘stapled’ to the note * Offer size - Up to $750m with the ability to accept oversubscriptions of up to $250m * Preferr
Slide 15: Preferred non-cumulative distributions
Preferred non-cumulative distributions * Until the first reset date, floating rate distributions, paid quarterly Distribution rate until reset date = 90 day bank bill rate + margin - Initial distribution rate = 4.85% p.a. + initial margin p.a. ~ Initial margin is set by bookbuild on 19-20 August * U
Slide 16: Payment tests, ‘dividend stopper’ and ranking
Payment tests, ‘dividend stopper’ and ranking * Distributions will not be paid if - ANZ does not comply with APRA‘s guidelines - Total distributions are greater than distributable profits, or - APRA otherwise objects ¢ If distributions are not paid, a ‘dividend stopper’ prevents ANZ from ~ Paying di
Slide 17: Reset provisions
Reset provisions e First reset date = 15 September 2008 Subsequent reset dates expected to be every 5 years * Terms that can be changed (subject to APRA approval) on reset dates 7 Next reset date Market rate (from floating to fixed rate or vice versa) Margin Frequency and timing of distribution paym
Slide 18: Exchange by holder
18 Exchange by holder * Holders may require ANZ to exchange some or all of their ANZ StEPS on a reset date or trigger event * Key trigger events include ~ Non-payment of distributions (if payment tests satisfied) - Liquidation event - Acquisition event ~ ANZ StEPS or ordinary shares suspended from t
Slide 19: Exchange by ANZ
Exchange by ANZ ° ANZ may require exchange of ANZ StEPS on - Acquisition event ~ Tax event - Regulatory event ~ Reset date - Aggregate amount on issue is less than $100m ° If ANZ requires exchange, at ANZ’s choice, holders will receive for each ANZ StEPS - Ordinary shares calculated in accordance wi
Slide 20: Assignment events
Assignment events ° If an assignment event occurs ~ Investors will continue to hold a preference share in ANZ, and ~The note will be transferred to ANZ * Key assignment events include ~ Liquidation events - Non payment of distributions — APRA requirements - ANZ’'s discretion ¢ Preference share right
Slide 21: Today’s presentation
Today’s presentation 1. Offer summary 2. ANZ - Update on operations and strategy 3. ANZ - Effect of the issue 4. Offer structure 6. Supplementary information
Slide 22: Syndicate structure
Syndicate structure Joint Arrangers & Bookrunners Deutsche Bank Joint Lead Managers AMZ investment Bank Co-managers ABN AMRO Morgans ANZ Securities Bell Potter Securities Citigroup Global Markets Deutsche Bank UBS UBS Deutsche Securities Macquarie Equities Ord Minnett UBS Private Clients ¢ Instituti
Slide 23: Bookbuild process
Bookbuild process * An institutional and broker firm bookbuild will be conducted to determine the initial margin - Indicative bookbuild range of 100bps to 120bps over the 90 day bank bill rate * Bookbuild will close for co-managers and participating brokers - Through the Joint Arrangers only - At 10
Slide 24: Indicative timetable
Indicative timetable Announcement of offer Bookbuild Bookbuild close - co-managers Bookbuild close - institutions Initial margin announced Opening date Broker firm settlement date Closing date Institutional settlement date Allotment date 14 August 19-20 August (10am) 19 August (4pm) 20 August 21 Aug
Slide 25: Bookbuild contacts
Bookbuild contacts * ANZ Investment Bank - Joerg Koeppenkastrop - Angelos Giannakopoulos * Deutsche Bank - Paul Umbrazunas - Grant Bush ° UBS - Guy Foster = Simon Maidment EPS Presentation +61 (2) 9226 6950 +61 (3) 9273 1774 +61 (2) 9258 1306 +61 (2) 9258 2657 +61 (2) 9324 3603 +61 (2) 9324 3948
Slide 26: Supplementary information pack
Australia and New Zealand Banking Group Limited ‘August 2003
Slide 27: Outline
Outline « Result review e Portfolio performance © Credit quality Presentation
Slide 28: Distinctive strategy and track record
Distinctive strategy and track record Four clear themes going forward Four core themes sR ANZ relative TSR CD s to build fi Leverage real capabi sustainable strategic posi $1,000 Grow value by creating a rich portfolio of specialised businesses **°° Become one of the most efficient ‘$600 ANZ MPeers*
Slide 29: Leverage real capabilities to build sustainable strategic position
Leverage real capabilities to build sustainable strategic position « Leverage specialisation as a distinctive strategy « Leverage leading product capability to increase share « Leverage superior cost position + To give customers the best deal + To give shareholders sustainable and growing returns »
Slide 30: A rich portfolio of specialised businesses
High Market Attractiveness Low Arich portfolio of specialised businesses - material improvement in last 2 years Source of profit Weak Strong Current ANZ Position * More sustainable portfolio foundation ¢ Each business has clear differentiated approach ° Systematically building capa! ‘ies to establis
Slide 31: Grow value by creating a rich and diversified portfolio of specialised businesses
Grow value by creating a rich and diversified portfolio of specialised businesses Optimise portfolio for sustainability, growth and return + Raise revenue productivity in Personal Banking + Lift performance and productivity in Wealth Management + Develop sustainable post-interchange cards strategy +
Slide 32: Aim to make ANZ one of the best managed and most efficient banks
Aim to make ANZ one of the best managed and most efficient banks in the world * Make execution a distinctive capability * Accelerate revenue and productivity momentum in businesses * Rebalance higher risk segments * Simplify operations and technology infrastructure cm (%) 2 year aE World class effic
Slide 33: Bold and different, leveraging a unique performance culture
Bold and different, leveraging a unique performance culture and business approach 2000 — 2002 Distinctive = (Top decile) nes, + Systematic — free auartie) ,____—— __ improvement = Za + Aim to be distinctive Australian * financial average* + values * Build on preferred 3 employer status = * Gain shar
Slide 34: Continuing to develop our culture
Continuing to develop our culture Over 10,000 of our % High staff satisfaction people have experienced maintained 100 Breakout program 12000 90 80 10000 70 60 8000 50 6000 40 30 4000 a 2000 10 0 0 Oo © SS Sd SMM SD eo aS a XS RS < OOS iS & eo rrr es Presentation
Slide 35: Outline
Outline e Strategy e Portfolio performance © Credit quality
Slide 36: Result driven by asset & deposit growth
Result driven by asset & deposit growth, non-interest income impacted by one offs $m 1,300 1,250 1,200 1,150 1,100 1,050 1,000 950 900 850 800 Interest Non Interest Income Income (35) expenses pee = = 1102+ NPAT 3.5% headline basis tT 3.7% cash basis Sep-02 * Sep-02 excludes significant transactions
Slide 37: Higher interest income, driven by strong asset growth
Higher interest income, driven by strong asset growth e : 9 sb Average Lending & Deposit ze Interest Margins 120 Volumes 6.00 110 5.00 100 90 a 4.00 80 3.00 70 60 453°" 262 2.00 50 1.00 40 30 = Mortgages Business* Deposits* Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 meee 63 ete Corp & Small Bus 1B business
Slide 38: Underlying non-interest income reasonable, but dominated by one-offs
Underlying non-interest income reasonable, but dominated by one-offs gy 2Ho2 cards 1,400 impact under- 1387 (10) accrual C195 under- | oe UszS | eo) Underlying x growth Higher ron Mment 25 1352 1,350 loyalty Ee costs’ Card (16) Pee Dm 1,325 Personal , a _] fee Ll er She on witedown (6) Includes 1,27
Slide 39: Expenses well controlled, cost income ratio flat
Expenses well controlled, cost income ratio flat $m 4,620 Uncetyng * Growth spend held re back due to lower 22 1602 - — ~ income growth impact ° Underlying half on half _ JV impact 11 cost growth of 1.4% (6) om Dl + Includes $10m increase in software 1,560 amortisation * Restructuring costs of $32m
Slide 40: Provisioning charge reflects conservative management
Provisioning charge reflects conservative management ELP Charge $m bp's * ELP rate down 3bps 350 HEmIELP adjustment 80 ~ reflecting strong MEEELP $ mortgage growth & 300 = ELP BP's 70 improved risk om OY ae a profile el) pala + ELP Portfolio B00 50 adjustment 40 continued 150 » accruing higher 30 le
Slide 41: Dividend payout ratio likely to trend upwards
Dividend payout ratio likely to trend upwards ° A progressive lift in the payout ratio likely over next three years towards high 60's « Expect to maintain 100% franking $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 Interim Dividend has doubled in six years 0.44 1997 1998 1999 200
Slide 42: Outline
Outline « Strategy ¢ Result review © Credit quality
Slide 43: A diversified portfolio performing well
A diversified portfolio performing well Mar03 Mar02 Change Institutional Banking 145 119 22% 1° half NPAT $m Personal Banking 137 121 13% Mortgages pis ET Transaction Services 84 76 11% SME 78 65 20% New Zealand 74 61 21% Asia Pacific 67 45 49% Asset Finance 60 48 25% Corporate Banking S55 55 0% Wea
Slide 44: Consumer Finance - challenges, but good underlying performance
Consumer Finance - challenges, but good underlying performance $m Improved underlying 120 performance (NPBT)* 100 80 60 40 1HO0 2HOO 1HO1 2HO1 1HO2 2H02 1HO3 Diversifying revenue* 6% 4% Aust Issuing 2% Aust Acq Personal Loans 11% 51% gnz Issuing HINZ Acquiring 19% | mother 13 ANZ StEPS Presentation
Slide 45: Mortgages - well placed to benefit from shift to mortgage brokers
Mortgages - well placed to benefit from shift to mortgage brokers Growing presence And we are well placed to % Broker penetration of Participate ket 7 ial Low cost income ratio - efficient @ processing platform 40 30 + 2 Leading broker distribution model, 0 with high quality MIS Australia UK us + ©
Slide 46: Institutional & Investment Banking - a leading franchise
Institutional & Investment Banking — a leading franchise $m 450 400 Consistently strong NPAT growth % 382 100 364 More focused single customer limits oy Se oo, Maximum ~ ot 60% of equivalent domestic “ limits 60 Maximum, secured 50 lending (80% of 40 60%) 30 Maximum 20 unsecured jess lending 10 (25%
Slide 47: Corporate and SME - well positioned for upswing in business lending
Corporate and SME - well positioned for upswing in business lending Avery strong Corporate franchise Investment in SME has yielded os Customer strong balance sheet growth Eo] duasinaibeR hh WEE ial without loss of credit standards had os $b FUM (loans & deposits) 20 13 6 . 6% * Risk grade ve wile pr
Slide 48: Personal banking - impacted by margin squeeze
Personal banking - impacted by margin squeeze on deposits and fee changes sm ae * Overall 16 bp decline epee in margins due to oe wolumes «Lower interest rates 18. over the half 20g Sales «Increased flows to Commissions ise higher rate deposit 190 Deposit | 188 products such as TDs 185 se S| | tl *
Slide 49: ...but strong account and deposit growth
..but strong account and deposit growth Deposits ($b) 27.7 29.0 30.4 25.8 23.4 24.0 24.5 00's Access Accounts 00's 180 60 160 50 140 120 40 100 40 80 60 20 40 10 20 0 0 1H '02 2H '02 1H '03 mem Opened (LHS) mam Closed (LHS) —Net (RHS) New accounts up 14% Closed accounts down 15% Net new accounts up
Slide 50: JV performance - good insurance and expense performance
JV performance - good insurance and expense performance, offset by FM we ING Australia NPAT* * Life Insurance business performing well due to improved service, efficiency, and claims management * Subdued equity market conditions continue to impact Funds Management business + Improved capital investm
Slide 51: Valuation supports carrying value of investment in INGA JV
st 2400 2200 2000 1800 1600 1400 1200 1000 Valuation supports carrying value of Carrying Value 1 May 02 1591 Unrecognised profit on sale ‘Of ANZ FM 248 Synergies and cast savings ia INGA 360 (approx) ‘pening proforma value 1,839 investment in INGA JV Expected value 2199 18% | rea EY ABC Valuation 16
Slide 52: Outline
Outline « Strategy ¢ Result review ¢ Portfolio performance tation
Slide 53: Arrears profile close to historical lows
Arrears profile close to historical lows 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% % Arrears > 60 days —small to Medium Enterprises —ortgages —cards —Total Personal & SME Businesses* StEPS Presentation * Consumer sector in good shape, with continuing low levels of unemployment and low interest ra
Slide 54: Mortgages portfolio healthy
Mortgages portfolio healthy* High quality arrears profile Increasing flexibility to service 0.45% 7 Australia & NZ ~ 60 Days Past Due 35% mortgage 0.40% 30% | Uncommitted Monthly Income at Application 0.35% in 0.30% 2000 (12003 0.25% 20% 0.20% — Cteee | —RILS Australia & nz 10% : —0/0 Australia & NZ
Slide 55: Mortgages - low representation in inner city Sydney and Melbourne
Mortgages — low representation in inner city Sydney and Melbourne Market Share by location 35% * Tightened assessment criteria Range of for inner city investment 20% Uist properties 25% is * Delinquency profile of inner city borrowers in line with average 20% 15% | | 11% a = ee, ANZ share 5% 6% 0% +
Slide 56: Domestic corporates well placed
Domestic corporates well placed Domestic corporates Reflected in healthy risk e remain lowly geared grade profile a 41.0bn 41.4bn 43.2bn 160 AAA to 140 Gearing ratio BBB (Debt to Equity)? 120} series break EE 100 BB+ to BB 80 BB Ge <BB- ell Mar ‘02 Sep ‘02 Mar ‘03 gon ZHOR@ROnN B+tOCCC 3.2% 2.5% 2.9
Slide 57: US energy portfolio - some issues, remains containable
US energy portfolio — some issues, remains containable _____ Total Limits Total Limits Total Limits excl 0G Excl O&G Committed $2.1bn $2.0bn 2.0bn Limits $1.9bn $913m in projects AAR to BEB Total a Outstandings BBB- $1.2bn $332m in Corporate lending BB+ to BB BB- >BB- (up) Sep-02 g z No of cust ep M
Slide 58: Deterioration in global electricity sector has stabilised
Deterioration in global electricity sector has stabilised pr» KMV Median Expected Default Frequency 1.00 * Deterioration in US and European utility sectors largely occurred prior to our 2002 Annual Results announcement * In 2002, S&P ratings actions in US power industry resulted in 182 downgrades, a
Slide 59: Global telco portfolio - no material issues expected
Global telco portfolio — no material issues expected Total Limits $5.5bn Total Limits | $4.7bn Committed 7 Limits $3.9bn rs Outst BBB+ 67% $3.16 os $2.3bn ae to 55% $1.39 BBB- BB+ to BB BB- : s Oe >BB- ee 0g 18% $0.46 (up) No of cust Sep-02 Mar-03 Mar-03 total 41 BHtoccc 1.9% 6.8% 11.1% 5 Non Accrua
Slide 60: Institutional & Corporate Risk Grade Profiles
Institutional & Corporate Risk Grade Profiles Institutional Banking (Outstandings) Corporate Banking Aust, (Outstandings) re to BBB BBB- BB+ to BB BB- >BB- 3 7 Sep-01 Mar02_—‘Sep-02—Mar.03, Sep-01— Mar-02 Mar-03 B+toccc 27% 2.3% 26% 3.1% 7.4% 64% 20% Non Accrual 16% 2.0% 18% 1.7% 17% 1.7% 14%
Slide 61: Offshore SCCLs now in place
Offshore SCCLs now in place Comparative SCCL Customer Limits Lending type SCCL % for offshore Corporates (excl. GSF) Indicative based on 888- grading —— 100% Capped at AUD 230m 80% 75% Capped at AUD 115m 40% > 80% Security <B0% Security 100% ‘Australia/New Zealand OffShore Corporates —— Direct Expos
Slide 62: Top exposures further reduced
Top 10 exposures further reduced S&P Top 10 committed Top 10 Speeuiee i as % of ACE Rating exposures 140% is At 130% BBB+ 120% AA+ 110% A 100% BBB+ \ 90% AAA 80% Position of At top 10 70% exposures BBB as at Sep 02 60% A 50% AA- 40% Sep 01 Sep02 Mar 03 Aubm 0 250 500 750 1000 1250 m Funded = Unfunde
Slide 63: Specific provisions down 29% - no large single provisions
Specific provisions down 29% — no large single provisions Provisions 1st half Specific $m Significant impact from Provisions by size single customers 400 100% Grindlays a credit 350 90% indemnity 80% 300 70% eae 60% 200 50% 150 40% 30% 100 20% 50 10% 0 ye 10m Mar- Sep- Mar- Sep- Mar- Sep-Mar-Sep- Ma
Slide 64: New non-accruals down 50% on March 2002
New non-accruals down 50% on March 2002 Geographic New non-accrual i New Non-Accrual Loans $m loans by source 900 800 700 600 500 400 300 200 100 2 a R igelle oeo e e 1H02 2H02 1H03 Rep Pe ese 8 Energy Domestic Corporate Asset Finance ™ Consumer Finance MAust/NZ HIUK/US MAsia_ "Other Inter Other Off
Slide 65: Non-accrual loans continue to fall
Non-accrual loans continue to fall, reflecting overall health of portfolio Historic Geographic $m Gross Non-Accrual gm Gross Non-Accrual Loans oct Loans (LHS) 1000 oe Non-Accrual Loans/ Loans| “7°78 oe 2000 & advances (RHS) 1500 1.50% go | 792 Aas En) 1.25% 600 1.00% 900 0.75% 400 600 0.50% 200 S00
Slide 66: Existing and future problem loans well provided for
Existing and future problem loans well provided for 60% 50% 40% 30% 20% 10% 0% SP/NALs ANZ Mar CBA Dec NAB Sep WBC 03 ‘August 2003 AN; 02 02 Sep 02 StEPS Presentation % GP/RWA 1.00 0.80 0.60 0.40 0.20 0.00 ‘ANZ Mar CBA Dec NAB Sep WBC 03 02 02 Sep 02
Slide 67: Important information
Important information This presentation relates to the offer of ANZ StEPS (Offer). The Offer will be made in, or accompanied by, a copy of the prospectus which was lodged with ASIC on 14 August 2003 (Prospectus). Any investor wishing to acquire ANZ StEPS must read the Prospectus and complete the app
Slide 68: Searchable text
Searchable text section of graphics shown above ANZ Stapled Exchangeable Preferred Securities (ANZ StEPS) August 2003 [LOGO] Today’s presentation 1. Offer summary 2. ANZ - Update on operations and strategy 3. ANZ - Effect of the issue 4. Offer structure 5. Bookbuild process 6. Supplementary informat
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Slide 70: Today’s presentation
Today’s presentation 2. ANZ - Update on operations and strategy 3. ANZ - Effect of the issue 4. Offer structure 5. Bookbuild process 6. Supplementary information EPS Presental
Slide 71: Offer summary
Offer summary * ANZ Stapled Exchangeable Preferred Securities (ANZ StEPS) ° Offer of up to $750m with ability to accept oversubscriptions of up to $250m * Floating rate securities paying a distribution set at a margin over the 90 day bank bill rate Issue credit rating -*A~’ by Standard & Poor's -*A2
Slide 72: Today’s presentation
Today’s presentation 1. Offer summary 3. ANZ - Effect of the issue 4. Offer structure 5. Bookbuild process 6. Supplementary information
Slide 73: Delivering sustainable profit growth
Delivering sustainable profit growth A track record of strong NPAT growth* 2003 interim results vMar 02 $m 1200 sia + NPAT $1,141m 8.7% fF + EPS 7acents 86%t FT + Cash EPS 74cents 10.4% + Interim dividend 44cents 12.8% ff + Net specific provisions $259m 29% § 800} 717, 600 * NPAT $1,141m 7.0% f 400
Slide 74: A diversified portfolio performing well
A diversified portfolio performing well Mar03 Mar02 Change Institutional Banking 145 119 22% Personal Banking 137. 121 13% Mortgages 131.123 7% Transaction Services 84 76 11% SME 78 65 20% New Zealand 74 61 21% Asia Pacific 67 45 49% Asset Finance 60 48 25% Corporate Banking aa 55 0% Wealth Manageme
Slide 75: On track in the second half
On track in the second half * Consumer Finance - back on track * Corporate & SME - performing well, lending growth of 13% YTD ° New Zealand - relatively flat * Mortgages - strong lending growth continues, up 17% YTD ° Asset Finance — positive momentum continues * Personal Banking - good deposit grow
Slide 76: Outlook for 2004
Outlook for 2004 * Planning for 2004 not finalised, however most business units continue to perform well » Some external challenges in 2004 - Credit card interchange - Unfavourable interest rate environment - Strong $A - Softening housing outlook * Despite these challenges, we expect EPS growth to r
Slide 77: Distinctive strategy and track record
Distinctive strategy and track record Four themes going forward ANZ relative TSR Leverage real capabilities to build ule sustainable strategic position (base $100) $1,200 Grow value by creating a rich portfolio of specialised businesses *¥°° Become one of the most efficient ‘$800 and best-managed ba
Slide 78: Today’s presentation
Today’s presentation 1. Offer summary 2. ANZ - Update on operations and strategy 4. Offer structure 5. Bookbuild process 6. Supplementary information
Slide 79: ‘AA’ category rating supported by strong capital position
‘AA’ category rating supported by strong capital position Drivers of ACE ratio Peer Comparison (eh Earnings Dividend % ACE/RWA 6.50 0.77 (0.47) AA RWA 5.75 6.25 ih. Other growth 0.04 6.00 se P| 29) 5.50 5.75 | 71 5.68 5.25 5.50 cet range 5.00 5.25 4.75 5.00 4.50 4.75 4.25 4.50 4.00 Sep-02 Mar-03 ANZ
Slide 80: Pro forma regulatory capital position
Pro forma regulatory capital position * Issue forms part of ANZ’s ongoing capital management program and = Will strengthen ANZ’s balance sheet = Will increase financial flexibility ~ May be used to buy-back or redeem Series 1 and Series 2 TrUEPrS, or = May be used for other purposes e APRA has class
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Today’s presentation 1. Offer summary 2. ANZ - Update on operations and strategy 3. ANZ - Effect of the issue 5. Bookbuild process 6. Supplementary information
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Searchable text section of graphics shown above ANZ Stapled Exchangeable Preferred Securities (ANZ StEPS) August 2003 [LOGO] Today’s presentation 1. Offer summary 2. ANZ - Update on operations and strategy 3. ANZ - Effect of the issue 4. Offer structure 5. Bookbuild process 6. Supplementary informat
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Slide 173: Adelaide Shareholder Meeting
Searchable text section of graphics shown above [GRAPHIC] 2003 Adelaide Shareholder Meeting [LOGO] We have operated in SA for 167 years South Australia [GRAPHIC] • 79 branches • 950 dedicated staff Our staff contribute to several local community organisations [GRAPHIC] [GRAPHIC] Staff members from M
Australia and New Zealand Banking Group — Debt Investor Presentation (September 2003) on 6ix