Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Macquarie Equities World Champions Conference 2003
19 slides from Anz's conference presentation, Nov 19, 2003
Slide 1: Macquarie Equities World Champions Conference
Macquarie Equities World Champions Conference Peter Hawkins Group Managing Director, Group Strategic Developrnent Australia and New Zealand Banking Group Limited November 2003
Slide 2: Table of contents
Table of contents 1. 2. 3. ANZ 2003 Results Page 3 NBNZ Acquisition page 7 Group strategy Page 14 Important Notice: Nothing in this document constitutes an offer of shares. A Prospectus in respect of the entitlements offer dated 24 October 2003 was lodged with the Australian Securities & Investments
Slide 3: Another Solid Result for ANZ, up 8.3%
Another Solid Result for ANZ, up 8.3% v Sep 02 ° NPAT $2,348m tT 1.1% ° EPS 148.3 cents T 0.7% Before Significant Items e¢ NPAT $2,348m T 8.3% ° EPS 148.3 cents T 8.2% e EPS (Excluding goodwill) 152.4 cents T 9.2% e Dividend 95 cents T 11.8% e Net Specific Provisions $527m J (27.6% ) 3 2 ps oe Jar i
Slide 4: Full year result driven by asset and deposit growth
Full year result driven by asset and deposit growth Full year NPAT growth increased 8.3% with growth in net income, Non Interest tight expense control, and improving Interest Income Expenses credit quality being the highlights. Income 393 12 (75) Net interest income * strong lending growth resulted
Slide 5: A specialised portfolio - efficient allocation of resources to deliver results
A specialised portfolio - efficient allocation of resources to deliver results A specialised portfolio allows us to efficiently allocate resources to those businesses experiencing, or with the potential for growth and to reduce resources away from those businesses with lower growth prospects and/or
Slide 6: Non-accrual loans continue to fall
Non-accrual loans continue to fall Historic Geographic Gross Non-Accrual Loans $m Gross Non-Accrual $m Loans (LHS) 1800 1000 1.75% Non-Accrual Loans/ Loans & advances (RHS) 1500 1.50% 800 792 ' 2000 182001 2002 2 2003 1.25% 1200 600 1.00% 900 0.75% 400 600 0.50% 200 300 0.25% 0 0.00% 0 1998 1999 200
Slide 7: NBNZ Acquisition
NBNZ A uisition | A is ie
Slide 8: NBNZ acquisition creates the leading bank in New Zealand
NBNZ acquisition creates the leading bank in New Zealand > Purchase price equivalent to A$4.915 billion (at exchange rates on 23 October 2003) > ANZ and NBNZ, when combined, will create: « The leading bank in New Zealand * One of New Zealand's top three companies ¢ Market leadership in all major mar
Slide 9: NBNZ Group has a strong track record
NBNZ Group has a strong track record Strong growth in loans and advances NZ$b 40 35 30 25 a 20 Dec-01 Dec-02 Jun-03 % Declining cost-to-income ratio 50 4 45 4 40 5 35 4 30 T Dec-01 Dec-02 Source: NBNZ Group Financial Reports 7 Jun-03 (LTM) 9 bps 15 High asset quality — Provisioning charge as % of lo
Slide 10: NBNZ purchased at attractive multiple
NBNZ purchased at attractive multiple Price* / LTM cash earnings muitiples 20 7 16.1 16 13.3 11.9 12 4 N 84 44 0 r r r r 1 Australian Regional Past Domestic Major Australian ANZ Standalone ANZ / NBNZ Banks Acquisitions* Banks (excl ANZ) Price* / Net tangible assets multiples 3.5 4 3.0 3.0 3.04 2.9 2
Slide 11: Estimated operating cost synergies and integration costs
Estimated operating cost synergies and integration costs Operating Cost Synergies Estimated at ~A$110m pa (before tax) within 3 years ¢ Expected cost synergies represent around 20% of NBNZ’s cost base a Cost synergies to be fully phased in by end 2006 * Key areas of cost synergies: a Technology # Ba
Slide 12: Managing key integration risks
Managing key integration risks Consideration Mitigant Minimise Impact on Customers Maintain both brands and both branch networks New Zealand centric retail business model leveraging NBNZ “client-facing” systems for retail, rural and SME Manageable concentration issues in corporate and institutional
Slide 13: ING integration has been successful in terms of cost synergies and growth in market share
ING integration has been successful in terms of cost synergies and growth in market share Progressive Joint Venture Market share — Retail FUM Expense Savings! % wo Previous estimates of 12 - “expense savings? to Current expected $m ce expense savings 10 - 100 80 High Estimate 84 60 6+ Low Estimate 4
Slide 14: Group strategy
14 A is ie
Slide 15: Our specialisation strategy - Monolines win, but returns more volatile.
Our specialisation strategy - Monolines win, but returns more volatile. Diversification reduces risk Average ROE % Average Volatility Independent analysis* has found that % 1998-2002 (standard deviation in TSR) monoline specialists create greater 30 1998-2002 returns than generalists. 25 20.8 25 23.
Slide 16: Internationally, we will reduce our US & European exposures, and seek longer term growth options in East Asia and the Pacific
Internationally, we will reduce our US & European exposures, and seek longer term growth options in East Asia and the Pacific ANZ’s international focus is twofold and remains clear 1. US and Europe - REDUCE Involving: « Focusing on core products and relationships "Modest capital « Reallocating capit
Slide 17: Summary
Summary A solid result in 2003 - Cash EPS up 9.2% — Portfolio well positioned - Credit quality improving NBNZ is a very different acquisition — We have purchased a quality asset with quality management - Focus on customers and growth — No change intended in total number of branches - Is transforming
Slide 18: General background information and contact
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
Slide 19: Copy of presentation available on www.anz.com
Copy of presentation available on www.anz.com 2 ee ek os cae
Australia and New Zealand Banking Group — Macquarie Equities World Champions Conference 2003 on 6ix