ANZ Banking Group Limited 2021 Annual General Meeting
16 December 2021
Start of Transcript
Paul O'Sullivan: Good morning and welcome to the 2021 Annual General Meeting of ANZshareholders which, as there is a quorum present, I declare open. My name is PaulO'Sullivan and I am joined here at our Melbourne Head Office by our Chief Executive
Officer, Shayne Elliott. All our other Directors are either in the room here in Docklands, orparticipating remotely.
Before we begin I would like to acknowledge the Wurundjeri people as the traditionalcustodians of the land from which we are presenting today, and to pay my respects totheir Elders, past, present and emerging. I extend that respect to other Aboriginal andTorres Strait Islander people joining us today.
Now we had hoped to be hosting this year's meeting in Adelaide. However given the
evolving nature of the virus and the ever-changing travel restrictions we thought it would
be wiser to again revert to a virtual event. But there is strong interest amongshareholders in the traditional format, and so we expect to be presenting live from South
Australia again next year.
To help with the smooth running of today's meeting our Group Executive Talent Culture
and Service Centres, Kathryn van der Merwe, will be assisting us. Kath will now take us
through some detail on voting and on asking questions. So over to you Kath.
Kathryn van der Merwe: Good morning ladies and gentlemen. As the Chairman said, myname is Kathryn van der Merwe and I am pleased to be the moderator for today's Annual
General Meeting. The Chairman has asked me to run through some housekeeping
matters, particularly in relation to voting and questions. I will also explain what will
happen if there is an unexpected technical problem.
We have sent a Virtual Annual General Meeting Guide and an FAQ document to allshareholders explaining how to vote and ask questions. If you need another copy it isavailable at anz.com/agm. For voting when the Chairman opens the poll a new voting tab
will appear. Selecting this tab will bring up a list of resolutions and present you withvoting options.
To cast your vote simply select for, against, or abstain for each item where the poll isopen. The selected box will change colours and your votes will automatically be recorded.
There is no submit or send button, your selection is automatically recorded. Of course you

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ANZ Banking Group Limited 2021 Annual General Meeting
16 December 2021
can change your mind or cancel your vote at any time before the poll is closed. The
Chairman will announce when that is about to happen.
Wayne Hopkins from Computershare has been appointed returning officer, and Martin
McGrath, from our external Auditor KMPG, has been appointed as scrutineer. Martin will
also be available in the event shareholders have a question of the Auditor.
In relation to asking questions, if you are submitting a question online please select themessaging tab at the top of the Lumi platform. At the top of the messaging page there isa section for you to type your question. Once you have finished typing please hit thearrow symbol to send. Questions and comments received from shareholders online will
generally be read out verbatim, with changes only made to fix grammatical errors.
You can submit questions and comments in relation to any item online as soon as the
Chairman allows questions to be submitted. If it is regarding a specific item of business it
will be stored and put to the meeting when we get to that item. Please do not wait for that
item before submitting your question. Please also note, you are limited to 1000
characters. We ask shareholders asking question via the phone to be equally concise.
If you do wish to ask a question in person over the phone, please ring the number you
have been provided and provide your name as per your holding, and PIN, when asked by
the operator. Once you have been verified you will be put through to the conference line.
To ask a question please press star-one on your telephone keypad.
The Operator will ask which item number you wish to ask a question on, and you will beplaced into the questions queue. Please note, you can still hear the meeting at this time.
At the relevant time you will be introduced to ask your question.
We have two shareholder-raised resolutions which are item 5 and item 6. Item 6 is acontingent resolution and will not be put to the meeting unless item 5 is passed. We
understand however that there are a number of shareholders who would like to put
questions to the meeting on resolution 6. We will allow this at the appropriate time, being
the discussion on item 5. At that time we will discuss both item 5 and item 6, together
with any questions and comments generally relating to climate change.
We welcome your questions about climate changes impacts and ANZ's relevant policies,
actions, business activities and disclosures. Shareholders will be aware, we cannot
comment about our banking of individual customers or their business activities. This is along-standing legal requirement. Please note that if you ask items on such matters before
item 5, including via phone, they will not be answered until the appropriate time.
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I can assure shareholders that ANZ takes its obligations relating to the proper running of
the AGM very seriously. To give all shareholders the opportunity to participate equally, we
ask shareholders submitting questions online try and limit their questions or comments to
two per item of business, and to submit each question separately. Similarly forshareholders asking questions or making comments via phone, we would ask you to also
try and limit your questions or comments to two per item of business. But to ask them atthe same time when you join the meeting for that item.
This being a meeting of shareholders it's important to note we will not comment on specificcustomer matters, or any matters subject to legal or other dispute. As such thesequestions or comments will not normally be put to the meeting. As I am sure you canunderstand, ANZ will also not put any questions or comments to the meeting that are
abusive, obscene or defamatory in nature.
The Chairman will, consistent with the Corporations Act, look to ensure that a reasonable
opportunity is provided to shareholders to ask questions and make comments on each itemof business and the meeting itself. Where we receive questions or comments that are thesame, or fundamentally similar, we may read out one or a representative selection for the
Chairman to address. In the case of multiple questions on the same topic that havealready been responded to, the Chairman may opt to advise that those questions havebeen adequately answered and move on.
The Chairman has also asked me to outline the process should there be any technicalissues that impact the meeting. If there are issues, on confirmation from the Chairman,
we will either continue with the meeting if possible until the matter is resolved. Or if thatis not possible we will temporarily suspend proceedings while we try to get back up andrunning.
If we cannot fix the problem in a reasonably short space of the time, the Chairman will
formally adjourn the meeting and look to resume at 3pm Melbourne time this afternoon,using the same log-in details as now. If this happens, and we hope it does not, we will
announce this to the ASX as soon as possible and also provide an update on anz.com.
Please note, we cannot control any internet problems experienced by individual
shareholders or their representatives. We will not suspend proceedings should individuals
be having problems of such a nature.
The Chairman will now address the meeting. Over to you Chairman.

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16 December 2021
Paul O'Sullivan: Thank you Kath. I now declare the polls open on items 2-to-5, and I
encourage shareholders to begin submitting their questions ahead of the formal businessof the meeting.
But let me begin with a review of financial year '21 and where it positions us today. In ayear that began with so much optimism it quickly became obvious that Covid disruptions
would again weigh heavily in 2021. As we sit here today, while there are reasons for
optimism about the economy, there remain many ongoing challenges.
Pleasingly vaccination rates in Australia and New Zealand are world-leading, and domestic
borders here in Australia are reopening, most in time for the Christmas holiday period.
Moreover the overall economy in Australia and New Zealand has remained in remarkably
good shape, with all the indicators pointing to a solid rebound.
However there will of course be issues to manage. Tourism and hospitality have had atough two years. In addition inflation, driven by supply chain bottlenecks and the strong
housing markets in Australia and New Zealand, is creating policy challenges forgovernments and for regulators. Unemployment has risen slightly, yet at the same time
the lack of overseas migration has contributed to staffing shortages in critical sectors.
As the economy opens up again we are proud of the way ANZ has supported those in needthrough the pandemic. In the early days we rightly prioritised supporting those who had
been most impacted by the various lockdowns, notably with loan deferrals. Thesedeferrals, which rolled off during the year, provided tens of thousands of customers withthe critical time required to manage their cash flow through the lockdowns.
Likewise we took action to ensure our people across our entire international network were
well supported. The Board is pleased with the continued positive results we are gettingfrom our employee engagement surveys.
So let me talk a little bit now about the business performance in financial year '21. From aBank perspective, the year demonstrated the benefits of a diversified portfolio as we
successfully navigated the continuing impacts of COVID-19 whilst also providing solid
returns for our shareholders. For the 2021 financial year we posted a statutory profit of$6.16 billion, which was up 72% on the prior year.
But whilst this was a pleasing outcome, it's important to recognise that the main driver
was a partial reversal of COVID-19 related credit provisions. If we look through the impactof those provisions, profit was flat year-on-year. But actually this does reflect solidmanagement of the Bank through this unprecedented crisis.
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As a result we were pleased to pay a total dividend of $1.42, this is up from $0.60 lastyear. It's meant that more than $4 billion was returned to you, your shareholders. This
was a particularly pleasing outcome given the heavy burden on investors through the
pandemic as the banking sector stepped up to support customers and the community.
Now last year I stressed to you that your Board would be focused on four key areas toimprove shareholder returns. In particular the efficient use of capital, improving customer
outcomes, reducing the cost to run the Bank, and the continual improvement of ourculture. I think it's important to report to you today on our performance. I am pleased tolet you know that we have made solid gains in all of these areas.
Let me start with capital management, which remained a highlight. We are now one of themost strongly capitalised banks in the world, which a common equity tier 1 capital ratio of
12.3% at the end of our financial year. To put this in a broader perspective, this is $6
billion above APRAs unquestionably strong measure.
Very importantly, we achieved this without the need to dilute existing shareholders by
issuing new shares in order to raise additional capital. In fact our intense focus has led to
ANZ delivering sector leading total shareholder returns over the 12 months to
30 September. We achieved all this while returning additional capital to shareholders andpaying a dividend more in line with our long-term payout ratio.
Let me turn to the second area, which is costs. We recognise the industry will continue toface downward pressure on margins. While we were early to this understanding, andindeed we have led the industry in this regard, we are maintaining relentless pressure on
our cost base.
I am pleased with the focus of the Management Team. We were the only major bank to
reduce the day-to-day cost of running the Bank. Allowing us to invest in new initiatives at
a greater rate than our competitors.
Looking at the third area, customer outcomes. We recognise that we need to better
anticipate and ultimately make faster and smarter credit decisions. This year major
increases in demand for home loans in Australia impacted our ability to processapplications in a timely way. Unfortunately this resulted in a loss of market share, which
to be frank, was a disappointing outcome.
Naturally this has been a major focus for the Board and Management. We are confident
that the systematic actions being taken by Management will address these issues. These
include increased investment in automation and process improvement. As a result we
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16 December 2021
expect our Australian home loan portfolio will return to growth in this half, and that ANZ's
growth will be in line with system growth some time in the second half of this financial
year. I think it's important to note however, that margins across the Group were wellmanaged in what was a challenging environment.
The events of the past two years also highlight the benefits of a strong culture. We
maintained very strong staff engagement, despite the majority of our people working
remotely. We attracted hundreds of engineers and data scientists - many from companies
like Apple, Amazon and Square - to help completely rebuild ANZ's digital capability.
Above all, while there is still more to be achieved we also made the strongest improvementin gender diversity in several years, with female representation in leadership roles
increasing by around 2 percentage points to 35.3%.
So if I summarise our performance in financial year '21, we strengthened our balance
sheet, we returned to long-term dividend payout levels while funding a share buyback, we
led the sector on cost management. Our staff remained highly engaged despite Covidinduced disruptions, and we continued to invest in new digital banking platforms which willradically improve customer and staff experience.
However the environment remains uncertainly and highly competitive and there are many
challenges ahead. We recognise we have more to do, particularly in the home loan
processing space. But we have made good progress in building a Bank to better compete
in a highly competitive fragmented market. Shayne will shortly discuss the work we aredoing to address these challenges through our ANZx program.
Let me turn now to resolutions, and I also want to give you the Board's perspective onsome of the resolutions being put to the meeting today. I will begin with the adoption of
the Remuneration Report. Ilana Atlas, who is the Chair of the Human Resources
Committee, will talk specifically to our approach. But given its importance to many
shareholders, I feel it is appropriate that I also make some initial comments.
On the whole management had a good year, either exceeding or meeting most of theobjectives set by the Board. Profit was up, capital management was strong, and New
Zealand and Institutional had particularly good years. But there were challenges, and thisis reflected in the final outcomes for our Disclosed Executives, with the average variable
remuneration being around 60% of their maximum opportunity. The Board believes thishas struck the right balance considering all that was achieved this year, including ourstrong margin performance.
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The other resolution I want to specifically address relates to climate change, and inparticular our lending to the natural resources sector. We recognise the most importantrole we play in enabling the transition to net-zero by 2050 is to work with our customers to
reduce their emissions.
This is not new for ANZ. We had led the Australian banking sector for several years with afocus on engaging with 100 of our largest emitting business customers, with a $50 billion
sustainable financing target, and with industry-leading climate related disclosures. We
know our stakeholders want further clarity on how we're aligning our lending portfolio with
the Paris goals. This year ANZ became the first major Australian bank to join the Global
Net-Zero Banking Alliance.
In line with this commitment we recently announced new emission intensity reduction
targets and pathways for two key sectors, power generation and large-scale commercial
buildings portfolios.
For our power generation portfolio, our target is to achieve a 50% emissions intensity
reduction by 2030. For our portfolio of large-scale commercial buildings in Australia, wehave set a target to reduce emissions intensity by 60% within the same timeframe. We’ll
progressively expand these pathways to other key carbon-intensive sectors, including oil
and gas, in 2022.
While we’re embracing our role, I accept that there will be some listening today who feel
we are not doing enough to act on climate change and, paradoxically, there will be others
listening who think we are moving too fast.
Specifically there are some who would prefer that ANZ no longer lends to fossil fuelcompanies at all. Such a ban would likely force these companies to source finance frombanks that are less committed to emissions reduction.
ANZ’s policy, however, is clear. We will only lend to energy companies with a targetdriven, publicly disclosed plan to reduce their emissions in line with the Paris goals. We
believe this will encourage and support companies genuinely committed to a lower
emissions future.
Of course, we know it’ll take some customers time to develop and implement their plans to
reduce emissions, however, my message today is, we’re prepared to work with those whoare committed to driving this change and that that is a far better result for the community
than simply washing our hands, walking away and pushing these companies into the handsof less responsible lenders.
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We believe this will also encourage and support companies genuinely committed to a lower
carbon emission future. Ultimately, the role of the Board is to ensure we are taking a
prudent, measured approach and we feel we have considered the needs of our customers,
investors and the community in our transition plans for a lower carbon future.
Now, at the conclusion of this meeting, we will be saying goodbye to one of ourlongstanding Directors in Paula Dwyer, who is stepping down after nine years of dedicatedservice.
Paula is one of Australia’s most respected Non-Executive Directors and we’ve been
incredibly fortunate to have her serve on our Board, particularly in her role as Chair of the
Audit Committee. Paula, we thank you for your service to the Bank and we wish you wellfor the future.
We are, of course, very pleased to be able to welcome Christine O’Reilly who will bestanding for election later in the meeting. Christine is an outstanding Company Director
and her extensive experience makes her the ideal Director to take over as Chair of our
Audit Committee. Christine will address the meeting directly but I know, if elected, she will
make a significant contribution on behalf of all shareholders.
Finally, it’s reassuring to know we have a dedicated workforce of more than 39,000 people
working hard every day for all our stakeholders. On behalf of you, our shareholders, I
express our thanks to them.
I’d also like to acknowledge our customers for again trusting us with their business andyou, our shareholders, for supporting us through the year. Your support is muchappreciated by the Board and with that, I will now ask our Chief Executive Officer, Shayne
Elliott, to address the meeting. Over to you, Shayne.
Shayne Elliott: Thank you, Paul and good morning, everybody. I’d also like to extend mywelcome to you today and acknowledge the Wurundjeri people as the traditional owners of
the land from which we are broadcasting this morning.
As already mentioned, the ongoing pandemic has created challenges for all of us and while
many uncertainties remain, there are good reasons to be optimistic about the economies inour key markets.
Hopefully, high community vaccination rates will contribute to a rebound in summer
trading and deliver a substantial economic bounce in the coming months. While the initialdamage of COVID has receded and life is slowly getting back to normal, the emergence ofPage 8 of 70

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16 December 2021
the Omicron variant in the last couple of weeks is an important reminder that
unpredictable challenges remain.
There will be new variants and governments will need to take the necessary steps toadjust to living with the virus. Now, there are also COVID-induced labour shortages andsupply chain bottlenecks with which we will all need to contend with.
As we know, when confronted with rapid change, many in the community will adapt andthrive but some will continue to struggle. Fortunately at ANZ, our strong sense of purpose,
our robust balance sheet and the experienced Management Team, mean we’re well
positioned to help customers through this uncertain period.
Now, whether it’s our supportive government-backed loan schemes or working withindividual customers on what’s right for them, we’ll continue to support customers and theeconomic recovery of Australia and New Zealand and all our markets.
Now, Paul has covered our financial performance in some detail but I want to give myperspective on how we performed in the financial year of 2021, particularly at a divisional
level.
Now, in our largest business, Australia Retail and Commercial, we delivered a good margin
performance and grew pre-provision and after-tax profit. Home loan revenue grew morethan 10% and while this was a good outcome, the total number of home loans we have on
our books fell during the second half and this was due to a couple of factors.
Firstly, customers were paying down their loans faster. Secondly, the speed with which wewere able to process an increasing number of applications just wasn’t sufficient. Now, as
shareholders would expect, we took urgent action to fix these processing issues bymaterial increasing our assessment capacity as well as simplifying and automatingprocesses.
We also appointed our Chief Data Officer, Emma Gray, an expert in data and automation,
to temporarily lead the Australian Operations Team. Now, while it’s still early days andthere’s still much to do, I’m pleased to see improvements in our processing times and amodest return to balance sheet growth.
Now turning to New Zealand, we had one of our strongest performances ever. Revenue
and profit were both up strongly while the investment required to comply with the Reserve
Bank’s BS11 regulation will finish in 2022, well ahead of schedule. Our Bank in New
Zealand remains a well-run business, providing critical diversification at an important time.
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Institutional had another good year, delivering earnings well above cost of capital. As you
know, there’s been significant work undertaken in recent years to simplify and focus theInstitutional Business and we’re now well positioned to take advantage of the structural
tailwinds we see impacting the sector over the coming years.
Now, the most significant of these tailwinds is the rapid transformation of how the world
produces, distributes and consumes energy. Literally trillions of dollars will be invested by
2050, making it one of the global mega trends impacting banking and society moregenerally.
Now, the reason for this is that for the world to decarbonise, a series of things are taking
place. Firstly, the sectors that can decarbonise such as vehicle fleets and manufacturing
are doing so at a rapid rate.
This takes considerable investment and at the same time, new sources of green electricity,
improved battery storage, different distribution networks and hydrogen solutions will be
developed with increased urgency. Again, significant investment will be required in theseareas.
So this change is also impacting financial markets, particularly around how climate risk
itself is assessed, managed, reported and priced. Now, your Bank is embracing thischallenge and as a Australia’s only truly regional Bank, we’re well placed to shape andsupport the required transition.
Our strength in the natural resources sector means we’ve deep relationships with thosecompanies that will lead the transition. With our dominant position in trade finance, debt
capital markets and syndicated loans, we’re starting from a position of strength. In fact,
we estimate we already have a share of around 5% of the global flows in sustainablefinance.
Now, to put this in better perspective, this year alone we participated in 81 transactions
with a total deal size of $119 billion while our direct lending to renewables has also
increased significantly to $1.4 billion.
Now, this isn’t just a shift happening at the big end of town. We’ve already helped financearound 1000 small and mid-size business customers to reduce their emissions such as ourpartnership with the Clean Energy Finance Corporation to finance zero emission electriccity buses in New South Wales.

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Now, I also wanted to share today our progress in building a better Retail and Commercial
Bank here in Australia. We know that the longer-term forces shaping the industry areleading to structurally lower returns and lower growth while also driving an unbundling oftraditional banking.
This new reality required a different approach as well as a material transformation in theway we operate. So in response, we spent the last couple of years working on a program
which internally we refer to as ANZx, which is using the latest technology to help people
better save and manage their money.
Effectively, it’s based on the pillars of financial wellbeing such as spending less than you
earn. Protecting what you can’t afford to lose and paying your most expensive debt down
first.
The program is progressing well and we’re currently testing our first customer proposition
with staff and will be ready to launch with new customers early in 2022 under a new ANZ
Plus brand.
Pleasingly, we’ve absorbed the cost associated with this by driving productivity benefits
elsewhere in the Group and that probably the best way to describe how all this works isthrough a short video we’ve prepared for today.
[Video played]
Shayne Elliott: ANZ Plus will be the foundation of the new ANZ. It will also allow us toprovide non-Bank services and deepen engagement with our customers. Now, much of thiswill be delivered by the strategic partnerships we’re building through our ventures andincubator business, 1835i, which was named after the year in which ANZ’s forebear bankfirst traded.
Through 1835i, we only invest where we see a path to acquire more customers, deepen
relationships or co-develop new propositions that we just couldn’t develop on our own. So
for example, recently we announced we had entered into a deed to take over Cash
Rewards, which was Australia’s leader in the buy now, save now, sector.
It's a great fit with our customer proposition of financial wellbeing and it brings over one
million new customers to ANZ while also allowing us to provide additional value to our
retail and hospitality customers. Through 1835i, we’ve also invested in eight fintechs likeLendi and Airwallex and launched three start-ups, each intended to drive customer
acquisition and deepen engagement.
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Now, another example of how digital solutions can rapidly improve our operations was thelaunch this year of ANZ GoBiz. GoBiz allows customers to plug the major accounting
software packages straight into our systems, reducing the time it takes to get the money
into the hands of small businesses from 30 days, right down to two.
While it’s early days, GoBiz is making life easier for our customers while also driving solid
growth in our Commercial Business.
We’ve come through an incredibly tough two years in very good shape. We’re one of themost strongly capitalised banks in the world. We’ve protected the interests of shareholders
by focussing on improving earnings per share. Now, we know the immediate period ahead
will continue to be uncertain.
Credit conditions are the most benign they’ve been in a generation but that won’t last.
Customers are demanding more from their banks. Competition is increasing and regulation
is becoming even more pervasive.
Put simply, while there are tailwinds beginning to emerge, it will still be a toughenvironment for some time. We’re laser-focussed on what is important for shareholders.
We will continue to regain momentum in Australian home loans. We will launch ANZ Plus
early in 2022 as well as releasing a digital home loan proposition towards the end of nextyear.
We will seed further profitable high return growth in our Institution Business, particularly
through sustainability. We’ll continue to invest in our commercial franchise, particularly
through our GoBiz proposition.
We’ll complete the regulatory work in New Zealand and we’ll continue to improve returns
there. We’ll continue to prudently manage shareholder’s capital and we’ll seek to invest for
decent and sustainable returns.
We’ll continue our work on simplification to enable low cost high resilience customer
growth and finally, we’ll continue to stand by customers at a time of uncertainty andcontinue to care for our people.
Whatever eventuates next year, we’ll be prudent, methodical and guided by our purpose.
So in summary, we’re well placed but the outlook remains uncertain. This’ll be another big
year of change and transformation but I’m confident we’ve got the team to deliver.
As such, I’d like to acknowledge my 39,000 colleagues, who’ve been unwavering in theirsupport of their customers and the community in an extraordinarily challenging time forPage 12 of 70

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everybody. Our people continue to be true to our purpose and embody the best of ourculture. I really thank them for their ongoing commitment.
Finally, while we’re going through a period of significant disruption and change at the
moment, I should acknowledge it was 70 years ago that the modern ANZ was born withthe merger of the Bank of Australasia and Union Bank of Australia. At the time, this was
the largest corporate merger in Australia. It took foresight and ambition and we’ll continue
to manage ANZ for future generations with that same spirit.
Coincidentally, it was also the time we launched a new moto. Tenacious of purpose. Which
resonates with the modern ANZ as strongly today as it did in 1951. Our purpose, to shapea world where people and communities thrive continues to guide all that we do and we’ll
continue to pursue it with tenacity. So with that, I will pass back to Paul.
Paul O’Sullivan: Thank you, Shayne. We now come to the Q&A section of the meeting. This
year, we again invited shareholders to send in questions prior to the meeting and the key
themes arising from those questions have been addressed in both mine and Shayne’s
opening statements.
We now turn to questions and comments in relation to the formal items of business. Can I
please remind shareholders to continue to submit any questions they want to raise either
online via the AGM platform or on the phone?
In terms of the online platform, we will store and respond to relevant questions andcomments for when we get to the specific item of business. For those asking questions via
the phone, you can also do that now or you can wait and dial in at the correct time.
As mentioned before, we will have discussion on items 5 and 6 at the same time, together
with any questions and comments generally relating to climate change or the environment.
This includes questions about climate change impacts and ANZ’s relevant policies, actions,business activities and disclosures. Any questions on these matters asked before item 5,either online or via the phone, will not be considered until the appropriate time.
Out of respect for your fellow shareholders, if you could please try and limit questions orcomments to two per item of business and if you’re submitting online, please submit eachquestion separately.
If you’re asking questions by phone, please ask them both at the same time when you join
the meeting for any specific item.

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So let’s start with questions and comments on item 1, the annual reports together withgeneral comments and questions about the management of ANZ, excluding any of therelevant matters that I’ve just said we will discuss at item 5. So can I take the firstquestion, please, Kath?
Kathryn van der Merwe: Thank you, Chairman. The first question is from Shareholder,[Robert Paul Kosovich]. With a much improved position as far as credit impairment
charges are concerned in 2021, does internal modelling suggest this to reverse in any
material way as official interest rates rise?
Paul O’Sullivan: Thank you, Robert, for the question and I think if there’s anything we’ve
learnt through COVID, it’s that it’s very difficult to predict what he outcomes and impacts
will be. Indeed, there still remains considerable uncertainty.
I think it is also important to note that thanks to strong capital management over the last
many years, ANZ entered into the current pandemic in a fairly strong position.
Your question specifically relates to interest rates and I do note that the RBA has beenquite clear that it does not see itself raising interest rates in the short-term. I think thatreflects the general uncertainty and the fact that there are other factors that we need totake into account in looking forward.
The RBA obviously is conscious of the fact that the impact of the pandemic is not yet clear.
What is true, that household balances are at 25-year highs. That there is significant
optimism and confidence about the rebound, it’s also clear that there’s a lot of uncertainty
and therefore we’re being very prudent about what comes next.
I should also note that in terms of the banking sector, it’s also become a very competitivemarket place. So in looking forward, I think it’s not simply a question of looking at interest
rates, it’s a question of looking overall and we’re watching very closely to see what
happens in the economy over the next period.
Hope I've answered your question and, Kath, onto the next question please.
Kathryn van der Merwe: We now have a question on the phone from John Whittington
from the ASA. Operator, please put him through. Welcome, John. Please proceed.
John Whittington: Good morning, my name is John Whittington and I am the volunteer for
the Australian Shareholders' Association. Today we hold proxies from 1053 ASA members
and non-members for approximately for 4.5 million ANZ shareholders, which if
consolidated, would make us fifteenth on your top 20 shareholder list.
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Our thanks go to you, the Board, and all ANZ employees for producing such a strong result
during this difficult year. Mr Chairman, my first question is about shareholder voting at
this AGM.
This year, like last year, ANZ did not include proxy voting form amongst the six sheets of
A4 paper plus a reply paid envelope sent to those shareholders who have opted tocommunications by post.
This can lead to disengagement of retail shareholders who are likely to feel their vote is
not wanted. Can you inform the meeting today of the number of shareholders, not the
number of shares, who voted this year compared with 2019 when you last mailed out
proxy forms? Thank you.
Paul O'Sullivan: Thank you, John, and can I begin by also thanking you and all thevolunteers in the ASA for the terrific work you do in making sure that retail shareholders
have a voice. Thank you also for the question.
As a shareholder in ANZ, you would obviously want your Board and management to always
be trying to get the right balance in terms of costs and efficiency as opposed to
expenditure.
So this is really a challenge whereby we're seeing the world increasingly moving to digitaland online. Yet we recognise there are people who don’t always have access to thosedigital platforms.
But the results are a question of cost in terms of printing and distribution and of course
sustainability in terms of impact on the environment. So we do try to get the perfectbalance.
I will note that the last time we printed a proxy form, only 2% of shareholders actuallyused that to respond. However, I'm conscious of the representation that you and yourassociation have made and as a result of those, I have asked the team to look at thepossibility for us to print a proxy form on the reverse side of the Chairman's letter when
we issue it next year.
Hopefully that shows we are listening and responsive to the comments of you and yourmembers. Thank you for your question and Kath, I'll move onto the next question please.
Kathryn van der Merwe: You have a question from Mr [Steven David Mayne]. CBA
recently completed a $6 billion off market buy at a 14% discount to the market price withthe fully franked dividend component being 74.6% of the buyback price.
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It was flooded with almost $30 billion worth of stock tendered into the offer. Westpac isalso attempting a similar $3.5 billion off market buyback but it has bombed so far because
the dividend component was set to be less than half.
Has ANZ investigated an off market buyback? And given our franking credits balance,
what proportion of such a buyback could be a fully franked dividend as opposed to acapital return? As this seems to be the key metric driving whether those off market
buybacks are worthwhile and popular with shareholders.
Paul O'Sullivan: Yes, thank you, Steven for your question and this really goes to thequestion of capital management by the Board and by management. And without getting
into the specifics of what you've asked, we're always very conscious of trying to make thebest use of capital.
You'll note that we have actually got an outstanding CET1 as we come out of the year and
we're also trying to manage that against the return on equity. In terms of returns toshareholders, we always look for the most efficient way in which to return anything toshareholders. And we're conscious that franking credits are worth a lot more to ourshareholders than they ever are to us.
We're also conscious of the fact that when we look at what we should return, we need totake into account market conditions and look at issues such as the stress test on ourcapital balance and how we see the environment unfolding moving forward.
So this is an area of constant review and exercise by your Board. And I can assure you
our desire would be to make sure we're returning capital as efficiently as possible toshareholders where appropriate. Next question please, Kath.
Kathryn van der Merwe: We have a question on the phone from Talitha Roberts. Operator,
please put her through. Welcome Talitha. Please proceed with your question.
Talitha Roberts: …sustainable solutions between 2020 and 2025. I understand thesesolutions including funding for a variety of activities, including waste management, housing
construction, and water procurement. How much will be directed to this funding
renewable energy?
Paul O'Sullivan: Okay and I think we said at the beginning that we would take questions interms of climate change and environment when we get to item 5. If I think about thatquestion, I think it very much falls into that category.

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So thank you for your question. What we'll do is we'll bring it back and we'll record it andbring it back and make sure that we answer it when we get to item 5 on the agenda. So
thank you for that. Let's go to the next question please, Kath.
Kathryn van der Merwe: A question from shareholder, Mr Wolfgang Frank. Since thefindings of the Hayne Royal Commission, what has been the total cost of all agreed fines,
legal defence, remediation work, and refunds to customers?
How many senior executives have been held accountable for these adverse findings andfailure of operational processes? Can executive management provide a guarantee that
there are no further skeletons in the cupboard?
Paul O'Sullivan: Thank you, Mr Frank, for your question. If you look at our disclosures in
our full year results, you'll see that we've disclosed that we've spent about $1.8 billion so
far which is a combination of what we spent on remediating customers and on our own
administration of that cost and process.
To give you a sense of the run rate, we still carry - we were still carrying in March of thisyear, about $1 billion in provisions for future remediation. That includes expenses. And as
we got to the end of the financial year, that number was about $800 million.
So that gives you a sense of the run rate. We would hope that we're closer to the end andcertainly as we look at the work we've done to date, we've come a long way in terms of a
remediation activity. I would hope that sometime in the future, we're able to close it
down.
Can I also say that we don’t see this exercise as purely being one about remediating
customers and responding to the Royal Commission. We've actually used this as aplatform for learning from the experiences and asking ourselves, how do we redesign our
process on our products so that we run a better bank?
And interestingly, the name of the group we have working on this inside the bank is calleda responsible banking tribe. In terms of accountability, there's full disclosure in our
remuneration report of accountabilities and remuneration over the years.
And you will note, I think it was two years ago, we took a significant reduction in variable
remuneration for our executives in reflection of the findings of the Royal Commission.
Thanks for your question. It's an important topic. I would say we're not rushing this, wewant to get it right, and it is an area of strong focus for your Board and management.
Next question please, Kath.
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Kathryn van der Merwe: We have a question on the phone from [Daniela Osiander].
Operator, please put her through. Welcome, Daniela. Please proceed with your question.
Daniela Osiander: Yes, good morning, team. I have a question, it does include the word
environment but is very much about business risk so I would please want you to answer
this now.
In October last year, the United Nations Environment Programme Finance Initiative, UNEP
FI, signed an open letter requesting that assumptions made by companies in preparing
financial statements under IFRS be compatible with the Paris Agreement.
As a member of the UNEP FI, what consequences do our clients, particularly those in highemitting sectors such as energy, face if such assumptions are not disclosed?
Paul O'Sullivan: Daniela, thank you for your question and thank you also for your interest
and activity in what's a really important topic. But can I also say that I've got an
accountability this morning and that is in running the AGM. I need to make sure that it's ameeting whereby we allow an opportunity for as many shareholders as possible to ask
their questions and to be heard.
And that requires a certain amount of discipline in how we run the agenda. So we have
put questions relating to environment and sustainability and the risk associated with thatto items 5 and 6.
We'll make sure that we have adequate time there to answer questions. But in this sectionof the meeting, I want to give shareholders a chance to ask questions on other topics sothat we don’t crowd out the agenda.
So thank you and I suggest that question be taken when we get to item 5 and 6. Next
question, Kath, please.
Kathryn van der Merwe: I have a question from Steven David Mayne. There have been a
lot of horror stories about how the big four banks have been treating small landlords
during the avalanche of branch closures since COVID first struck in February last year.
How many Australian branches have we closed since the start of 2020? How many do westill have? And what is our policy in terms of fair dealings when we break a lease or
attempt to negotiate a new branch lease with a substantial reduction in rent?
Paul O'Sullivan: Steven, thanks for your question and this is another one of ours where
we've got to find that golden balance between competing pressures. It's a very interesting
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statistic that when we look at branch customers, only 6% of customers in the average
branch frequently or regularly visit their branch physically.
And as you've seen in the pandemic, there's been a strong move to using online. In fact,
close on 50% of our sales last year in Australia were done on digital platforms. I'm goingto pass to Shayne to provide some context on the branch network but let me also add that
we're very conscious that our landlords are also customers and part of the community andtherefore we're keen to be very responsible in the way that we manage any exits.
But Shayne, to provide some context on our branch network, our rationalisation, and how
we handle landlords, can I pass to you?
Shayne Elliott: Sure. Thanks, Chairman. And thanks for the question, Steven. I think
Paul has covered - it's important to give the context of why we close branches. And really,
we're closing branches in response to changing customer behaviour as customers choose
increasingly to use digital channels and have no real need for the branches.
To answer your specific questions, as of today, we have 421 branches across Australia andover the last two years, we've closed about 150 which is a significant number. The vastbulk of those closures though were in urban and city areas where we've been able toconsolidate practices into some of our larger branch networks.
So those are the numbers. In terms of the treatment of the landlords, I'm a little bit
surprised by the way you've articulated the question. That's certainly not the feedback
we've had from our landlords.
We're very respectful of the way we treat the landlords where we have branches. And
ideally, what we try to do is we time closures around the ending of a lease anyway. And
we give those landlords quite a significant amount of notice in terms of our intentions.
But if there are landlords at the moment who have some concerns about the way that wedeal with them, I'm more than happy to deal with those offline.
Paul O'Sullivan: Thanks Shayne. So Kath, we'll move to the next question please.
Kathryn van der Merwe: We have a question on the phone from [Luigi Bocello]. Operator,
please put him through. Welcome Luigi. Please proceed with your question.
Luigi Bocello: (Shareholder) Yes, my question is so you've recently added capital notes
issue number 6 which was all online. I was one of the persons that don’t have internet
and all that sort of crap.
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I was able to get a hard copy of the prospectus and I was also informed by Computersharethat if I lodged my funds by a certain date and time at the Pakenham branch of the ANZBank, they would then take my details over the phone to issue with the notes.
I lodged my money on time and when the notes issue closed, I got a phone call back from
Computershare, they never received my email for the details so they would not proceedwith my application and my funds would be returned to me within 10 working days.
You had my money for three weeks. I got no interest on it. No satisfaction. My questionis, the next issue of capital notes, is ANZ going to provide hard copies or leave it digital?
Paul O'Sullivan: Thank you, Mr Bocello and I'm sorry to hear about your experience. It
clearly wasn’t a good one. I think this, again, is an example of us trying to navigate
getting the right balance between the changes that there are in the world and how wemanage our cost base.
I think it's important to say that our decision to move to online for these applications is
actually consistent with market practice and if you look at market practice by other major
players in recent times, they've taken the same approach. Obviously, there's a significant
cost for the Bank associated with continuing to provide physical channels for these sorts ofactivities.
So, I respect your opinion, I apologise for the experience you had, but nonetheless in allhonesty, to do the right thing by shareholders and in managing costs moving forward we
will be sticking with what is established market practice and continuing to use the online
platform. What I would like to do is if there are challenges in actually getting through that
platform, please feel free to contact me and I will find someone at the Bank who can help
support you in terms of registering and navigating your way through that process. Thankyou for your interest in ANZ and for your willingness to invest with us.
Next question please.
Kathryn van der Merwe: The question from shareholder Wolfgang Frank: how can a majorbank such as ANZ have processing issues in a longstanding and basic product such as
housing loans resulting in a material drop of market share? A manual approval of a
housing loan should take no more than 30 minutes if all loan criteria is met and supporting
data is submitted. It appears there is far too much reliance on third party originators whoare solely interested in obtaining an approval to generate their commission, thus resulting
in a level of dodgy applications.
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Paul O'Sullivan: Thank you Mr Frank and obviously that has been a big question for your
Board and management through this year. I would like to provide some context on theperformance and our loss of market share and I might ask Shayne in a moment to justprovide some perspective on third party broker channels and the value that they do bringto the Bank.
Let me first of all put in context the home loans issue. It's important to stress that we
actually increased our processing capacity year-on-year. In fact, we handled a muchhigher volume of home loan applications this year than last year and you can also see thatin terms of our revenues in the Australian Retail and Commercial division, we actually grew
revenues through the year.
However, we significantly underestimated the growth in market demand and that's
reflective of the fact that with interest rates at historic lows a lot of customers were looking
to lock in and fix their interest rates. Let me give you a statistic which gives you a sense of
the volume of activity in the market this year. 30% of the ANZ Australian customer base in
the mortgage book had a pricing event this year. That is a significant lift on previous
volumes.
Let me be frank, we got it wrong. Although we expanded capacity, we didn't expand
capacity enough and as a result we lost market share to those who could process it. We
have spent a lot of time, our Board and Management, understanding this issue. There has
been significant work done to bring in new processes, new ways of handling things and tolook externally at best practice and to see what we can learn from that and improve ANZ.
I think it was clear from my comments and from Shayne's that we do see ourselves
returning to growth in the home loan book this half and that our growth in the home loan
book should be in line with system growth in the second half. So yes, it's been adisappointing performance, but there has been a lot of work done to get us back on track.
Let me pass to Shayne now to just talk about the importance of the broker channels andthe value they bring to ANZ.
Shayne Elliott: Thanks Chairman. I might just make some further comments about thehome loan processing and thank you Mr Frank for the question. I can understand why it
might seem that it should only take 30 minutes but I think it's important to remindshareholders of the regulatory environment, which is a good thing and around the
responsible lending obligations we have.

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We have an obligation not just to process the loan but to ensure and take reasonable steps
to ensure that, quite rightly, that the applicant has the means to repay the loan without
undue hardship. What we need to do is be able to look through their spending patterns,
check their bank statements to understand the level of household expenditure they have,confirm their level of income is stable, et cetera, so it's not quite as simple as it mayotherwise seem.
The other point I think it's worth just reminding shareholders, that quite rightly in yourquestion you point out exactly the issue, you say if all loan criteria is met and supporting
data is submitted. In reality, most applications do require some wee work where they don't
always come with sufficient data and so that's generally why it takes a little bit longer.
Then the other point I think is interesting and ANZ is a little bit different to many of ourpeers, we have a very strong small business customer franchise and one of the things thatthe Bank specialises in is being able to give home loans to small business operators. Of
course, small business operators don't have a payslip and so in order to be able to assessthem for a home loan it's a little bit more complicated and it takes a little bit more time.
About a third of all our home loan applications actually come through by self-employedpeople or small business operators which is something we're good at but it does take alittle bit more time. It's a bit more complex.
In terms of the question about third parties, the broker channel, what we're doing here is
we're responding to customer need and customer desire. Customers across the country arevoting with their feet and they're deciding that they like the service they get from thebroker channel. So, they go to brokers for various reasons, to get better pricetransparency, to understand the market, there's well over 100 providers of home loans in
the market place and so brokers provide a valuable service and customers choose to go
through them and so it's only appropriate that we respond and have the ability to accept
applications through the broker channel.
At ANZ it's a little bit more than half of all the applications we get come through the broker
channel. What's good for shareholders is that's a great channel for what we call new tobank customers, so people that may not already bank with ANZ. It's a great way for us tobe able to put our proposition in front of people and earn the right to service thosecustomers over time. We think there's a strong and there will always be a place for thatbroker channel in the future and it's appropriate that we have a really good position andprocessing relationship with the major brokers across the country.
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Paul O'Sullivan: Thanks Shayne and I will just finish remarks and that actually by addingthat brokers are seen by customers as valuable for getting a sense that they're getting agood deal and for checking the market, but we find that a large number of ANZ customers
who go into that channel end up coming back to us. It has that important role of giving
people confidence about the deal they're getting. Thanks for the question and now we'll goto the next question please.
Kathryn van der Merwe: We have a question on the phone from John Whittington from the
ASA. Operator, please put him through. Welcome John, please proceed with your question.
John Whittington: (ASA, Shareholder) Mr Chairman, I've got two final questions for thissection. Firstly, we applaud your reporting of net promoter score in the annual report. It is
excellent disclosure appreciated by shareholders. Unfortunately, you seem to have thelowest net promotor score in all markets but Institutional and, if anything, they seem to begetting worse. This would seem to have significant implications for the future success of
the Bank. There is no value in having great products and services if no-one wants to dobusiness with you. How is the Board addressing this problem?
My second question is, thanks for the improved disclosure of the auditor tenure in the
Annual Report and on your website which shows that you have had the same auditor since1969. When was the last competitive audit tender held and when does the Company plan
to hold the next one? Thank you.
Paul O'Sullivan: Thanks John for your question and for the benefit of everyone listening, so
the net promotor score is a survey we do of customers and it looks at people who arewilling to promote their experience as positive with the Bank offset with those who detract
or say they've had a negative experience. Actually, there are many different net promotorscores. The one we're reporting externally is only one of many, but I acknowledge it has
not been a strong performance and we are not satisfied with it.
I will say that we do also look at other net promotor scores, we call them touch point for
example, which is a specific metric let's say if you've dealt with a branch or you've dealt on
the phone at a specific point in time. The second comment I would make is that we'reusing that information to redesign a lot of our processes and products within the Bank andShayne has referenced a bit of that in his talk. Work in ANZx is not merely about building a
digital platform, it's actually about redesigning the end to end experience a customer hasfrom the moment that they make a touch with the Bank to when we actually fulfil theirneeds with a product or service.
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There's an ongoing focus on this John and we do believe that we will show significant
improvement on this over the next few years. I should add a similar focus and effort isbeing made in the Institutional Bank where again we do score very highly. We are rated
number one in a number of surveys on the Institutional Bank by customers in terms of
their satisfaction. Nonetheless, we are not resting on our laurels in that area.
Let me turn to your second question which relates to audit tenure and audit competition.
The challenge is that banks are big entities and there's only a finite number of companies
that have the scale and resources to be able to undertake audits of the major banks. Of
course, there's also the issue of competition tension whereby auditors may be working fora rival bank. It is true that we have had the same auditor for a long period of time. We did
run a form of competitive process in 2015, but it was with the incumbents, so I would
acknowledge it wasn't a full open tender.
The Board and the Audit Committee in particular are very focused on how do we makesure that we are getting a fresh set of eyes, that we're getting renewal and indeed we'regetting challenge from people coming in to work on the audit who don't feel they arehistorically bound by what has been decided in the past. In that sense there's a strong
program of rotation that we undertake with our auditor. There have been four rotations of
the lead audit partner and of the engagement teams who undertake the ANZ audit overthe last 10 years. That's specifically designed to make sure we are bringing fresh eyes,
fresh questioning and fresh perspectives onto our audit.
It is going to be an ongoing challenge moving forward. There is a finite pool that we canfish in our competitors are using the other audit firms. We will continue to think about
ways in which we can make sure we are getting the best quality audit for the Bank. Thanks
for your questions and onto the next question please Kath.
Kathryn van der Merwe: We have two different questions from Mr [David Payne]. The firstis: a banking competitor to ANZ recently had bad publicity regarding middle management
staff working excessive unpaid overtime hours. If there are subsequent court findings
adverse to that bank regarding this, is there any reasonable likelihood that this action may
also flow onto ANZ and thus need to be reflected appropriately in provisions? Do staff
consider ANZ as an employer of choice?
The second question: is the Bank now overcapitalised, i.e. $6 billion above required levels
at the expense of shareholder returns? Will the level of issued hybrids be decreased in themedium term as a result of this current capitalisation level?
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Paul O'Sullivan: Thanks for the questions, Mr Payne. Let me take the first one of thosewhich relates to are we an employer or choice, do we aspire to be an employer of choice
and also what do we learn from the findings, not only in the banking industry but indeed ingeneral in terms of payments and conditions for staff? We do watch this very closely. We
mentioned our staff engagement scores recently. The Board and Management look closely
at this and it has been pleasing for us that our engagement score, despite all the
disruption of people having to work from home through the pandemic, has come in ataround 80% which is actually quite a high score for engagement by Australian standards.
We do feel we have got a good relationship with our employees. However, it is also
important we are continuing to stay vigilant on this. In the area of payments, for example,
which you mentioned, we actually have a strong process for not only regularly reviewingthat we are paying in line with our EPA and the award system, we have also recently set
up a centralised group to act as a control, to basically do the audit and checking to makesure that our processes are correct in terms of how we are paying and rewarding staff. We
do look at what happens externally and we would of course make sure that any learnings
from an outside court case were taken on board.
In terms of your second question, I partially mentioned this earlier and that is that the one
thing we learned from COVID is just how uncertain things are and how quickly they canchange. If you have a look at the Bank's capitalisation as we came out of the financial
year, I noted in my speech that at a CET1 of 12.3% we are actually well above the Central
Bank's requirements in terms of being unquestionably strong.
You mentioned the $6 billion number. The Board looks forward at this and thinks about
capital management. We are always conscious of the need to strike the right balance
between the external environment, the capital requirements of the Bank and what is
appropriate in terms of expectations and returns to shareholders.
To give you an example and to go to your point, we’re conscious for example, that if wewere to reduce the amount that we’re holding in terms of capital at the moment, let’s say
we sat at about a 10.7% CET1, that would improve our return in equity, which is going to
be about 9.9% by about 40 basis points. So we’re very conscious of the capital that’s
required and held on the balance sheet.
It’s also fair to say that we think the environment is still significantly uncertain. So
although there’s a lot of positive coverage in the media about the end of the pandemic,
just being confident about how the economy responds, about what it means once we get
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passed the initial opening up, what the new variant may mean and indeed the strong
competition we’re seeing in the banking sector, all of those still provide a degree of
uncertainty.
So we’ll be looking to have a very balanced approach to how we treat our capital andindeed what we may do in terms of future funding or in future returns to shareholders. I
hope that’s answered your question and, Kath, onto the next question, please.
Kathryn van der Merwe: We have a question on the phone from Julien Vincent from Market
Forces. Operator, please put them through. Welcome, Julien, please proceed with yourquestion.
Julien Vincent: (Shareholder) Thanks very much and thanks for [unclear] to take myquestion now because you made a comment, Chairman, in your earlier address about
working with customers to reduce emissions and what’s happening is that where it reallymatters most, you’re failing to help customers reduce emissions.
You’ve got clients on your books such as Santos, Woodside and New Hope Group, which
are trying to develop new fossil fuel projects that would add billions of tonnes of CO2 tothe atmosphere that we can’t afford and that’s a fact that’s been enshrined by even the
IEA in their Net Zero by 2050 report this year.
So it’s now been six years since the Paris Agreement’s been signed and why is ANZ giving
companies like this another four years before there’s even an expectation of transition
plans to be provided when within those four years, companies that you are currently
exposed to are attempting to lock in billions of tonnes more CO2? That sounds like yourengagement efforts to work with customers to reduce emissions are absolute lip service.
Paul O’Sullivan: Julien, thanks for your question and as I said at the beginning, I want tomake sure we have time on the agenda for shareholders to ask their questions and I don’t
want to crowd out the agenda with questions on one topic. That’s why we’ve said we’ll holdquestions on the environment and sustainability to items 5 and 6.
So please, submit your question there but can I also say, I think when we get to 5 and 6, I
strongly believe we’re on the same side and we’re trying to get to the same place. Next
question, please.
Kathryn van der Merwe: I have two questions from [Mr Steven Shuster]. Question 1,
would the new Chairman dismiss members of the Executive Leadership Team, including
the CEO, if it was proven that they blatantly breached the rules of the code of conduct?
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The second question, how can the Bank claim to have a speak up culture when in reality,
whistleblowers who report issues that question the integrity of executives are treated withdisdain and people are actually scared to speak up, knowing what the ramifications wouldbe.
Paul O’Sullivan: Okay, thank you, Mr Shuster for your question. We take the code of
conduct very seriously but I’m also very much a believer in a fair go and in natural justice.
So in answer to your question, I think it really depends on the context and the situation
which we would find ourselves.
We do, in the annual report - I think it’s on page 97, go through in some detail specificprocesses we have inside the Bank for holding people accountable and for any breaches ofour code of conduct or of our values.
In fact, we disclose the number of cases we considered last year and the outcomes. So it isa very serious issue and we do take a lot of focus and attention on it. Clearly, no one issacrosanct and all of us, including myself, ultimately have to be accountable for our actions
and to take the consequences but I’m a strong believer that everyone should also be given
a fair go and that natural justice should prevail.
In terms of the second point, in terms of speak up culture, it is a very important issue,
particularly in a bank and in any organisation that people are willing to speak up. We
actually do provide facilities for this.
We have a third party operated whistleblower line that employees can call and anonymity
will be protected. We obviously are conscious of the whistleblower legislation and we haveformal training internally on the - what the law requires in terms of preserving theanonymity and confidentiality of anyone whistleblowing if they require it and I think that’s
a very important point to stress.
We also measure this. So in our staff surveys, we actually ask people, do they feel
comfortable they can speak up without there being negative consequences? In our mostrecent survey, we got a score of around 80% on that, which again by Australianbenchmarks, is actually a high score.
So look, we never relax on that but it is an area of strong focus for us and I do believe weare creating the right processes and systems to enable it. Thanks for your question andKath, onto the next question, please.

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Kathryn van der Merwe: We have a question on the phone from [Christine] from[Accretion] Proprietary Limited. Operator, please put her through. Welcome, Christine,
please proceed with your question.
Christine: (Shareholder) Thank you and thank you for the opportunity to engage at theAGM. So my questions are in relation to how we report on our exposure to various
products so there are a couple of questions here.
So in the climate-related disclosures document, which shows that our exposure to oil andgas has declined year-on-year for the past two years, however, that still stands at asignificant $14.6 billion. So part of the question is, what’s driven that decline and do we
intend for it to continue?
Further to that, in that document, it notes that that exposure includes exploration,
extraction, transport, refining and retail of oil and gas. However, our major competitors,
CBA and Westpac, disclose a breakdown of the exposure to each of these subsectors andI’m wondering when ANZ will do the same?
Similarly, with the electricity that we have, we have $12.3 billion of exposure to electricutilities and again, defined in a conglomerate. The electricity generators that own or
operate a mix of thermal and renewable generation assets as well as transmission anddistribution infrastructure, which doesn’t tell us very much.
While CommBank, NAB, Westpac, they do disclose the breakdown of electricity generation
exposure by fuel type, for example. Exposure to gas-fired power, hydroelectricity, etcetera. So when will ANZ provide such a breakdown of our electricity exposure?
Paul O’Sullivan: Christine, thanks for your questions and for your interest in what is a topic
that a lot of people, including ourselves are very motivated by but look, I am focussed on
making sure we preserve section 1 for questions other than environment and sustainability
so that everyone gets a fair go. So please, resubmit that question when we get to items 5
and 6.
So Kath, next question, please.
Kathryn van der Merwe: I have a question from Steven David Mayne. Did any of the main
proxy advisors, ACSI, Ownership Matters, Glass Lewis and ISS recommend a vote against
any of today’s resolutions?
Which of the proxy advisors are covering us and has there been a material proxy protest
vote against any of today’s resolutions? Will you disclose the proxy votes before thePage 28 of 70

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debate on today’s resolutions so shareholders can ask questions about the reasons if there
have been any protest votes?
Paul O’Sullivan: Steven, thanks for your question and for putting me in a wonderfuldilemma. You know the proxy advisors are very important to us and I certainly don’t wantto get them off side unnecessarily.
They operate a subscription service and people pay for their advice so I don’t think it’d beappropriate for me to start disclosing that advice here. So I think it’s important to preservethat. I think you’ll be able to deduce how they’ve recommended based on the voting thatyou see when the results come out.
In terms of the suggestion on changing the way we might run the AGM, look, we get quite
a number of suggestions for different bespoke versions of an annual general meeting anddifferent ways in which we might change it.
To be honest, unless there’s an absolutely compelling rationale for change, the formula wehave today is one that shareholders are accustomed to. It works well. We’re confident it
preserves legal obligations as well as providing a good platform for shareholders to engage
with the Board and so we would be reluctant to change it unless there was a decision by
the regulator or some other legislative instrument requiring us to make the change but
thanks for the question.
Next question, please.
Kathryn van der Merwe: Question on the phone from [Peter Sainsbury]. Operator, please
put them through. Welcome, Peter, please proceed with your question.
Peter Sainsbury: (Shareholder) Thank you very much, Operator and Chairman. My
question relates to again the annual report where in page 7 - sorry, the Financial Related
Financial - Climate-related Financial Disclosures, page 7 of the 2021 report.
We state that the Bank’s stress-tested our agricultural portfolio for physical climate risk
under two warming scenarios and that this was summarised in a UN - United Nations
report published three-and-a-half years ago.
The findings show declines of revenue of up to 12% by 2025 and 22% by 2045 in a
scenario of unmitigated global warming of four degrees Celsius. By contrast in 2019, theCommonwealth Bank [disclosed] that under the same scenario, the Australian grains,
livestock and dairy industries faced declines in productivity and profitability of 40% to 50%
by 2060.
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So given our $30 billion exposure to agriculture, when will we be disclosing the anticipatedchange in default [rate] of the agribusiness book that we hold in a scenario of unmitigatedglobal warming?
Paul O’Sullivan: Peter, thank you for your questions and for your interest. Again, this is a
climate and environment-related question. I’ll just note the fact that we do have such asignificant disclosure which is industry leading, shows we’re not reluctant to discuss thesematters. In fact, we’re an industry leader in terms of disclosure.
But as I said, to maintain fairness for all shareholders, we’ll pick this up on item 5 and 6 soplease resubmit your question then and if there are others on the telephone queue who
would like to submit a question on climate, please note it is going to be item 5 and 6
where we take that.
So over, Kath, to the next question, please.
Kathryn van der Merwe: The question is from [Rita] from Denmark Dream Proprietary
Limited. Chairman, ANZ has just agreed to a $25 million fine with ASIC for their serious
contraventions in failing to provide their customers the entitled benefits they should
receive via ANZ’s Breakfree package, which they signed up and paid for. Also affected carloans where customers did not receive their associated ancillary benefits.
This highlights significant system failures which have unfairly impacted thousands ofcustomers, causing them financial harm. The media reports ANZ collected around $1.9
billion in annual package fees alone from 2003 to 2021. ANZ has stated it will pay the lastof the compensation to its customers in the 2023 financial year.
I am aware of several ANZ Breakfree package customers who have not yet been contacted
by ANZ. Could you and the Board advise where ANZ has not contacted its affectedcustomers in the remediation process, what those unfairly treated customers should do?
Paul O’Sullivan: Rita, thank you for your question and this relates to recent publicity
around the Breakfree case and also by ASIC in terms of some action that they are taking.
Yes, we acknowledge that there were some problems with our systems and processes
around the administration of this product that relates to work between - or products wesell between 2008 and 2020.
We’ve done a significant amount of work on remediation, not only for the customers interms of payments but also to make sure we’re fixing the systems and the processes that
underpin it.
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We have worked with ASIC to agree a statement of facts but other than that, given that
this is about to go before the courts, I am really not in a position to say much more otherthan that we absolutely acknowledge the issue and we’re working hard to rectify it. So
thank you, Rita, for your question.
Next question, please.
Kathryn van der Merwe: We’ve a question on the phone from [Abigail Shepherd].
Operator, please put Abigail through. Welcome, Abigail, please proceed.
Abigail Shepherd: (Shareholder) Thank you. Good morning, yes, this is a question in two
parts and it’s specifically about possible legal risk issues. So the first question - and you
don’t have to answer it immediately, it will make more sense when I continue to the rest ofit, is whether ANZ is aware of the advice of Noel Hutley SC published by the Centre for
Policy Development, about corporate legal obligations in connection with climate issues.
Depending on what your answer to that question is, my - well my question is, is that we’ve
had the benefit of more recent advice from Mr Hutley in which he identifies how important
it is for companies to have a reasonable basis for their statements about climate goals andtargets and about the risk of legal consequences of greenwashing. That is, making
inaccurate comment - commitments or without a reasonable basis.
Now, ANZ has declared that it supports the Paris Agreements goals of transitioning to net
zero emissions by 2050. Given that the international energy agency to which Australia
belongs has reported this year that in a plan to achieve net zero by 2050, there is no needfor investment in new fossil fuels and given that ANZ has continued to finance the fossil
fuel industries, are you concerned about ANZ having engaged in greenwashing of the typeidentified by Mr Hutley in his advice?
Paul O’Sullivan: Abigail, thank you for your question and in a general sense, the Board isalways ensuring that we keep ourselves updated on significant developments in terms ofcorporate governance. The Hutley opinion is one of those.
But look, the rest of your question really goes to climate and environment and again, topreserve space in the meeting for all shareholders to get a fair crack of the whip, I’m goingto hold off those questions till we get to items 5 and 6. So please, resubmit your question
then. Thank you.
On, Kath, to the next question, please.

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Kathryn van der Merwe: Yes, a question from Erebor Proprietary Limited. ANZ had $151
billion of cash and cash equivalents at September 2021, earning 0.1%. Lower than thecost of at least 94% of its interest-bearing liabilities.
Historically, cash to meet liquidity has been circa $80 billion. Half the current level. Why is
the level of cash still so high given the economic recovery? When will it come back tohistoric levels rather than continue to lose money given the negative NIM on this asset?
Paul O’Sullivan: Thanks. Thanks, for the question and I think we might take it in a general
sense rather than get into the specifics as to what our actions might be in the future but I
was going to - really, it’s an operational question and I was going to pass to Shayne toprovide some thinking and background on it.
Shayne Elliott: Great and thanks for the question. You’re quite right, the banking systemat the moment is flush with liquidity, largely as a result of the Government and regulatory
response to the pandemic.
As we’ve seen, there’s been lots of support across the economy for which many customers
are enormously grateful and that’s really helped cushion the impact of COVID on small andlarge businesses and frankly, also on households.
What’s happened as a result of that support is a lot of that saving and liquidity has ended
up in savings accounts with banks. I think all of the major banks have reported similarlevels of high liquidity at the moment.
Not unsurprisingly, small business operators, mums and dads, large businesses are still alittle bit cautious about the future and they want to sit on high levels of deposits. That’s
the results and exactly the sort of numbers you talk about there.
Now, that puts a burden on the Bank as you quite rightly say because we’re unable toalways utilise those deposits in terms of lending. So we’re right at this sort of interesting
pivot point where we’ve got lots of liquidity.
The economy is generally improving as you say and there’s some really strong signs but
it’s yet - other than in the housing space, it’s yet really to materialise into demand forborrowing from small and large businesses.
We expect that that’s probably going to be that way for a little bit longer so we manage
our margins and we manage those liquidity as best we can by trying to do the right thingby customers. Paying competitive rates but also making sure that we are able to generatea decent return in terms of margins for shareholders.
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I think what the Chairman referred to earlier in his opening remarks is, ANZ actually has
done a really good job, we think, in managed margins overall. In fact, as you saw in thelast reporting period, we were the only major bank to actually improve our margins yearon-year.
So it’s a constant area of focus but we imagine that the high levels of liquidity will be with
us for some period of time.
Paul O’Sullivan: Thanks, Shayne. Kath, onto the next question, please.
Kathryn van der Merwe: We’ve a question on the phone from [Jane McNicol]. Operator,
please put her though. Welcome Jane, go ahead.
Jane McNicol: (Shareholder) Yes, thanks. Yes, my question is - I have two questions, infact. The first one is, the International Energy Agency stated earlier this year that no new
fossil fuel projects could be approved in order to achieve net zero by 2050. In light of this,when will ANZ commit to provide no further finance to companies such as Woodside and
BHP who are planning to develop the controversial Scarborough gas field of the WA coast?
My second question is, there is now irrefutable scientific evidence that the 40,000 year old
Murujuga rock art on the Burrup Peninsula in Western Australia is being destroyed by acidrain produced by local industry. What is happening to this UNESCO-listed - short-listed
rock art that has been referred to as the Juukan Gorge in slow motion. Woodside’s
proposed expansion of its Pluto facility would only exacerbate this process.
When will ANZ take a stand against the destruction of Aboriginal heritage by committing toprovide no further financing to the companies developing the destructive Pluto expansion
project? Thank you, Mr Chair.
Paul O’Sullivan: Okay, thank you, Jane, for your questions and these are important topics
but I just want to reiterate to ensure everyone has a fair go in the meeting, we’re taking
questions on environment and climate as part of items 5 and 6. So please resubmit thequestion then. Next question please?
Kathryn van der Merwe: Question from [Mr Stephen Payne]. Do you expect that thesignificant drop-off in migration into Australia over the current two years will flow on to afurther impact on the level of housing loans in the short-term and medium-term? Thus
limiting growth opportunities in this market.
Paul O'Sullivan: Look, thank you for your question Mr Payne. I'm going to ask Shayne to
add a comment in a moment. But it's just important to note that migration is just one
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16 December 2021
factor that drives growth in the housing market. Obviously there's natural growth in the
population, and of course it's people moving and wanting to change or upgrade or
downsize their homes.
But Shayne, did you want to add any perspectives as to what you see in terms of the
housing market?
Shayne Elliott: Yes, only a little bit really, Chairman you’ve covered it. I think it's an
excellent question, and as you point our Chairman, there are a lot of factors at play here.
Migration is a very important one. Migration has been a source of a large amount ofAustralia and New Zealand's population growth over many years. So it's we're at a point
where we don’t really know what the level of migration is going to be.
I think we are an interesting time where the borders are just opening up. We are certainly
getting students back and others. So time will tell. But it's one of the factors. But if I
assort of stand back and just think about the housing market in general, it's our view, andI think shared by many others, that the market will continue to grow, but at more modest
levels. Perhaps we might see sort of 5% or 6% growth in the system, that sort of demandfor home loans over the coming years.
But it's a very uncertain period of time. There are a lot of factors at play, of which Mr
Payne has quite rightly pointed out one of the more material ones.
Paul O'Sullivan: Thanks Shayne, and thank you Mr Payne. So Kath, onto the nextquestion please.
Kathryn van der Merwe: We have a question on the phone from [Talitha Roberts].
Operator, please put her through. Welcome Talitha, please proceed with your question.
Talitha Roberts: (Shareholder) Yes, all right, our Annual Report talks a lot aboutsustainability and the need to address climate change. But our Climate-Related Financial
Report shows we have $15 billion-plus of exposure to fossil fuels, which is more than 10times [our measly] $1.4 billion to renewable energy.
I note that we mentioned earlier that there was investment with the Clean Energy FinanceCorporation for some buses in New South Wales, electrical buses. But do we really expect
to be taken seriously on climate change when our loan book is so heavily weighted toward
fossil fuels?
Paul O'Sullivan: Talitha, thanks for your question, a very important topic. But as I have
said, the meeting will make sure we give enough time for questions on the general
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16 December 2021
business in item 1. I'd ask you to please resubmit that question when we get to item 5
and item 6.
Thank you. Next question please.
Kathryn van der Merwe: This is a question from Rita from Denmark Dream Proprietary
Limited. ANZ established a customer resolution portfolio in early-2020 and says it informs
us when we are not meeting customer or community expectations. We have commenced
a program to review and improve our IDR policies, systems and practices. ANZ has
recently removed its own customers' right of appeal to its Customer Advocate, which
provided another internal avenue from its own complaints handling decisions.
ANZ emailed its home loan customers saying, the consumer lending terms and conditions
are being updated to remove the Customer Advocate as a review option if you make acomplaint or have a dispute with ANZ and are not satisfied with our resolution of yourcomplaint.
Chair, please provide a status of ANZ's program to review and improve its IDR policies,
systems and practices? How is it fair to the Bank - for the Bank to remove theircustomers' ability to engage the Customer Advocate to appeal ANZ's adverse decisions
when ANZ itself actively directly customers to their Customer Advocate?
Paul O'Sullivan: Rita, thanks for your question. Actually the Board spends a lot of timelooking at our customers satisfaction and how we handle any complaints or disputes. In
fact during the last 12/24 months we have made a significant investment in upgrading thetechnology that allows us to record any customer concerns, track how they are managed,
and ensure that there is a resolution. Or indeed if there is an ongoing dispute, that it isescalated.
We have also met during the year with the Australian Financial Complaints Authority, that’s
the board and the leadership of the authority. We have reviewed internally our progress indoing a better job of resolving disputes in a timely and effective manner. Indeed we notedthat we were one of the most improved banks in terms of our perspective on that throughthe year.
It is our intention to have an escalation path internally to an equivalent of a Customer
Advocate. You will hear more about that in the coming months. But can I just say, this is
an area of strong focus for the Board, particularly with the learnings we have taken out of
the Royal Commission. We see customer complaints, and indeed disputes, as anPage 35 of 70

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opportunity for us to learn and to redesign and re-engineer our processes so that we canprovide a better experience for customers, and ultimately be a more successful bank.
Thanks for your question. Next question please.
Kathryn van der Merwe: The question comes from [Mr and Mrs Ambler]. How is ANZ
ensuring its Small Business Banking Managers are qualified to evaluate the financing needsof small business who are introducing new concepts?
Paul O'Sullivan: Thank you Mr and Mrs Ambler. I'm going to pass to Shayne to talk about
that. In fact there has been quite a bit of discussion between the Board and Managementon the opportunities that we see in this important segment. Over to you Shayne.
Shayne Elliott: Thanks Chairman. Look, it's a great question. As I mentioned in my
opening remarks, small business, or the SME space, is a really exciting area which we are
well-positioned for and we think will be a major driver of economic recovery and growthover the coming years.
I think if I understand the question is really about, how do we ensure that our people arereally well-equipped to understand the new economy, the new concepts when people, I
mean innovators and entrepreneurs, come with perhaps less traditional businesses. Are
we able to sort of assess the banking needs of those customers. Undoubtedly we won't
always get that right. But I can tell you that we've got a great small business franchise.
We have very experienced people in there.
Yes, they, we have specialist teams - so without going into too much detail - we havespecialist teams in the health space, or in the agricultural space, in property areas. We
actually have an area of emerging companies as well. So we try our best to make surethat our frontline are experienced around core banking, which really is terribly important interms of a foundation, but are also open to new ideas.
ANZ is one of the only major banks in fact that will consider unsecured lending to start-up
businesses. So businesses that don’t have a track record. That’s really because we areconfident that we do have the right kind of people in the frontline, but also in the risk
teams, to assess the risk of the new concepts and new business models that you refer to.
Paul O'Sullivan: Thanks Shayne, and thanks for the question. So Kath, onto the nextquestion please.
Kathryn van der Merwe: Question from [Erabor] Proprietary Limited. Although youreported a profit of $6.163 billion, the true measure of Management's contribution to
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shareholder return is economic profit added. ANZ has reported that economic profit
increased by a mere $85 million in 2021, with cumulative economic losses of $2.4 billion in
the last four years.
Why isn't economic profit growth a key performance measurement for Management? Does
the Board expect economic profit growth in FY22?
Paul O'Sullivan: Thank you for the question. Actually it is a key indicator that the Boardand the Management spend some time looking at, because it ultimately gives us a good
sense as to whether we are getting a better return over and above our cost of capital andwhat value we are creating in the Bank. So we do review it regularly.
It is something we take into account when we look at performance. We shortly will be
discussing the Remuneration Report. But the Board is absolutely conscious of this as a
metric when its forming its views on how it assesses overall performance for the year.
Clearly we are not in a position to give a forecast or guidance for the year ahead. Thatwouldn’t be appropriate. But nonetheless, I just want to assure you it's an area of strong
focus for us.
Onto the next question please.
Kathryn van der Merwe: Question from Mr [Stephen Mayne]. As of today, the Big 5
Australian banks are capitalised as follows. Number 1, CBA, $167.5 billion. Number 2,
NAB, $93.6 billion. Number 3, Macquarie Group, $78.3 billion. Number 4, ANZ, $77.4
billion. Number 5, Westpac, $77 billion.
Are we embarrassed to have been surpassed by Macquarie Group which, according to Joe
Aston, the AFR's Rear Window column, has been stealing a lot of mortgage market sharefrom us in recent times. Because they can process applications in less than 10 days, when
it takes us 51 days, the longest in the market. What is wrong with our systems, and what
are you doing to fix it?
Paul O'Sullivan: Thanks Stephen. There's really a couple of questions there. One is, what
about market cap, and the other one is, what are we doing about home loans. Let me
start with market cap. Look, it is a metric. I'm not sure it's the right metric to look at interms of how we're performing. Be conscious of course that we have done a number ofcapital reductions over the last few years.
Actually what really matters I think is total shareholder return. If you look at TSR weactually led the industry this year in terms of our total shareholder return performance.
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But obviously we could have a long debate about what other metrics to look at. That what
we are focused on at the Bank is making sure we're running something which drives goodlong-term returns for shareholders.
In terms of the second topic that you raise, home loans. I think we've touched a little biton the reasons why we got to where we did. In terms of our systems and what we're
doing to fix it, we have got a two-pronged approach. The first one is, within our existing
systems and processes we have added extra resources. We have brought in outside thirdparty expert advice. We are redesigning our systems and processes so that we can handle
more capacity and delivery faster turnaround times and decision-making.
We realise the importance of that in the short-term, particularly in terms of being able toservice third-party channels. I think I would also distinguish between the fact that some ofthese digital online platforms today are very good at processing what we call, simple
mortgage applications. Those would be, let's say, a PAYG customer for something which isa basic vanilla mortgage.
For a customer who might, for example, have a small business and who might be looking
to take on a home loan mortgage as well, that’s a more complex loan. I think you'll findthat those digital platforms are not very efficient or effective in processing those. Indeed
at ANZ we tend to get a lot more of the more complex loan decisions. However that’s not
an excuse for our performance. As I have said earlier, we are very focused and are
confident that Management has a plan to get that under control.
The second aspect to fixing this is the investment in new technology and new platforms.
Shayne has talked about that in terms of his comments on ANZx. That’s a significant
investment for the Bank. Effectively we are putting a new frontend capability into the
Bank to allow us to deal with customers digitally, and to be able to do flow-throughprocessing with the minimal amount of human intervention.
That’s a major project for the Bank. You will see evidence of that coming to market in the
coming 12 months in terms of our savings products. We would have our home loan
products coming to market some time after that.
I hope that’s answered your questions Stephen, and thanks for raising those matters.
Next question please.
Kathryn van der Merwe: This question comes from Rita from Denmark Dream Proprietary
Limited. In September KPMG were fined $613,000 by the US Accounting Watchdog after a
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16 December 2021
review found widespread cheating by staff on training tests over a four-year period. The
US Public Company Accounting Oversight Board found that approximately 12%, or morethan 1000, Australian staff had cheated on important professional compliance tests that
ensure staff members are aware of various laws and accounting standards.
Is ANZ aware if their Auditor company, KPMG, has reported and informed ANZ of these or
any other serious issues? Does the Board have any concerns regarding ANZ's financial
audit reporting prepared by KPMG as its Auditor?
Paul O'Sullivan: Rita, thanks for the questions. I'm sure those who regularly read thefinancial press will have seen some pretty extensive coverage on this. So yes, absolutely,
we do engage with our Auditor when we see issues like this arise. I want to assure all
shareholders that we have engaged and been given adequate assurances by KPMG. We
are satisfied with the way they have handled this matter as they have represented it to us,
and that it has no consequences in terms of the quality or the assurance is required for the
ANZ audit.
So thanks for the question, but let me assure shareholders that we have investigated thismatter. Next question please.
Kathryn van der Merwe: This question comes from Mr Wolfgang Frank. Historically ANZ
was regarded as the business bank amongst the big four, but over the past 10 years
there’s been a material shift to focus on retail banking. Based on most recently half yearly
results, ANZ Australia’s profit from its business bank was 16% of total profits compared to
42% at NAB, 31% at CBA and 19% at Westpac, according to Evans and Partners’ research.
Are there not far greater growth and NIM opportunities in business lending, supported by afavourable economic outlook, rather than housing loans which is becoming a commoditised
product?
Paul O’Sullivan: Thank you for the question, Mr Frank and delighted to see that you
scrutinise the Annual Report so thoroughly, so thank you for that. I’m going to talk justbriefly about our mix and then I’m going to pass to Shayne who has already partiallyanswered some of the question. But whilst you call out that we’re a smaller bank in termsof business banking, let’s not confuse that with the fact that we actually have the largest
institutional bank in Australia and indeed we’re the largest international-facing institutionalbank of the Australian four major banks. So we do have a significantly different businessmix overall than our big four competitors.

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But Shayne, you’ve talked briefly about the focus we have on business banking and maybe
you might like to add to that in response to this question.
Shayne Elliott: Sure, I’d be pleased to and thank you for the question. I think one of the
difficulties when we’re making comparisons is, as the Chairman mentioned, businessbanking is a broad array of size and scale of businesses. When we think about it in its full,
ANZ is the largest business bank, quite rightly, as you’ve mentioned and that remains thecase because of our significant presence in what we call institutional banking, which is thevery large companies and that stretches not only here in Australia, but actually rightaround the world. That is the reason we have our international footprint, so we are thelargest business banking overall.
If it’s referring to some of the smaller end of businesses, again it’s not always easy to do
like-for-like comparisons. But the real heart of your question is where we see opportunity
and the good news is that because we’ve got such a strong balance sheet, because wehave lots of capital, because we’ve got lots of liquidity, we see actually opportunity rightacross the spectrum, whether that’s in retail banking, whether that’s in small business orin parts of our institutional franchise.
So what we do is we need to generate for shareholders that we get decent returns when
we allocate the capital and so we have quite rigorous process for assessing risk-adjusted
returns. So we consider the risk the reality is that business lending can actually be muchriskier than retail lending, so we adjust for that and we think about the net returns toshareholders and we allocate capital appropriately. So I can just give you assurance thatthat is very much the way we go about thinking about where we put our resources towork, to generate the best mix of risk-adjusted returns that we can get for shareholders
over the long term.
Paul O’Sullivan: Thanks Shayne. Next question please.
Kathryn van der Merwe: Question comes from Mr David Payne. What processes will ANZ
implement for future AGMs to better consolidate environment and climate items into asingle question-and-answer session, where each question topic is only asked once and not
repeated over and over? Thank you for your consideration.
Paul O’Sullivan: Thanks for the question, David. And indeed, that’s been my goal throughthis exercise this morning, which is to make sure that it’s clear to everyone how we cangive them the time to ask their questions at the relevant item of the agenda. We do have aprocess in place where we ask those calling in to advise what number their question
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pertains to, which resolution it pertains to and we have ANZ staff sitting in on this with theoperator to make sure we fully understand.
We ask people to give us an idea of what the actual question is and we do say to people
that if their question comes through on the wrong item number on the agenda, it won’t beanswered. So we’re doing our bit and I’d encourage anyone who’s calling in, make sure
you identify the correct resolution for your question because as David has pointed out, thatmakes sure we have a more efficient meeting which is a better result for everyone and it
makes sure we get time to answer your important questions.
So next question, please.
Kathryn van der Merwe: Thank you, Chairman, there are no more questions for this item.
Paul O’Sullivan: Thank you. We will now move to the formal resolutions, so let’s move toitems 2(a) and 2(b), which relate to the election and the re-election of Directors. Two ofyour Directors, Christine O’Reilly and Sir John Key, are seeking election and re-election
respectively. Their experience and profiles are included in the Notice of Meeting.
The Board, excluding the interested Director in each case, recommends that shareholders
vote in favour of each Director standing today. The resolutions in relation to each person
will be introduced separately and there will be an opportunity for shareholders to ask
questions about each candidate. So first, let’s turn to the election of Christine O’Reilly.
Christine joined the Board on 1 November this year and is retiring in accordance with theCompany’s constitution and being eligible, Christine offers herself now for election. We willplay for you right now a short presentation from Christine in support of her candidacy.
Christine O’Reilly: Hello ladies and gentlemen. I am pleased to submit myself for election
to your Board. To stand as a Director of ANZ is a great privilege. This is an opportunity I
thought about deeply out of a desire to ensure that I could make a strong contribution. I
bring a diverse range of board experience with significant Australian corporates, including
my current directorships of several companies which sit at the heart of the Australianeconomy and community, such as BHP and Stockland.
In my role as Audit Committee Chair, an early career in chartered accounting andinvestment banking, together with experience as a CEO and within a significant Australianfund manager, places me well. Importantly, all these roles have helped to enable a deep
insight into the skills and behaviours required of a Board member and an understanding of
the importance of having affinity with what the Company does and why it exists, it’s
purpose. To me, a bank is very much at the heart of our community and at the forefront ofPage 41 of 70

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technological and societal change. Being part of that is what appeals to me about joining
ANZ.
This is an exciting but challenging time for the Bank as we face into a world emerging froma huge dislocation, one which will have long-term impacts, together the impacts andchallenges arising from climate change and technological disruption. While ANZ has
already demonstrated strong leadership, we must now continue to evolve in order todeliver long-term value to our shareholders while maintaining community relevance anddemonstrating a strong commitment to creating social value for all our stakeholders.
I believe that my extensive experience as both a CEO and a non-executive director has
equipped me with the breadth of skills, experience, insights and perspectives to contributemeaningfully to the discussions and deliberations at the Board and Board committees as
we tackle these challenges. I have been a customer of the Bank and will also bring thatperspective to Board discussions. I have the desire, energy and capacity to perform myrole as a non-executive director at ANZ well.
I’m looking forward to working collaboratively with my Board colleagues and the ANZ team
to deliver value. I would greatly appreciate your support in my election. Thank you.
Paul O’Sullivan: Thank you, Christine. Now I’ll pass over to Kath to see are there any
questions?
Kathryn van der Merwe: We have a question on the phone from John Whittington from the
ASA. Operator, please put him through. Welcome John, please proceed with your question.
John Whittington: (ASA, Shareholder) Mr Chairman, I have a question for Ms O’Reilly since
we prefer to hear directors up for election speak live to the meeting, rather than in prescripted, pre-recorded methods. Ms O’Reilly, welcome to the Board. Could you tell me what
you believe the biggest contribution you personally can make to the Company in your timeon the Board over the next nine years, say?
Paul O’Sullivan: Thanks John and yes, we are joined by Christine here at Docklands, so I’mgoing to pass over to Christine to respond to your question. Over to you, Christine.
Christine O’Reilly: Thanks Paul and thanks John for the question. As I mentioned myaddress, yes, which was pre-recorded on this occasion, I do bring, I think, a breadth ofskills, but I have a core competency around financial skills and as such, I have been asked
to take over and chair the Audit Committee. So I certainly hope to bring that breadth ofexperience to the work that I do in that regard.
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I also do come from a business background, I have commercial experience, I have debt
and capital markets experience and I have people experience and so I will bring all of
those to the boardroom table and working collaboratively with my colleagues. Thank you.
Paul O’Sullivan: Thanks Christine and thanks for the question, John. Kath, have we anyother questions?
Kathryn van der Merwe: Yes, we have a question from Mr Steven David Mayne. Could
Christine please comment on why she left the Transurban Board earlier than expected
when many of us were hoping she would become the next chair? Does she believe inserving the average term of eight to 10 years at major public boards, or is there a chance
she could also quit ANZ earlier than expected?
Also, Treasury Wine Estates has voluntarily moved to annual elections for directors in linewith best practice that occurs in both the US and the UK. Dual-listed companies like
Newscorp, BHP and Rio Tinto all do this due to the laws in the us and UK and BHP has
pledged to continue doing it even after its DLC ends next year. Can Christine and the Chair
comment on whether they will support ANZ exploring whether to follow this lead and moveto annual elections of directors at the 2022 AGM?
Paul O’Sullivan: Thanks for the question, Stephen. I’m going to take them initially andthen I’ll see whether or not it makes sense for Christine to take the questions further. But
if I just start with the first part of your question, one of the things that you and othersquite correctly stress is the importance of directors thinking about their portfolios deeply
and making sure that they’re able to balance those portfolios appropriately and thatthey’re continuing to add value and participate in a meaningful way.
So I don’t know that it's necessarily the case that you can draw any deductions fromsomeone choosing to leave a board at a particular time and I’m not even sure it’s
appropriate that Christine should have to reveal publicly her motivation in deciding to dothat.
In terms of the question you make about the laws and the changes in law in different
jurisdictions, whilst there are Australian companies who may operate overseas who havechosen to reflect some of those laws in the way that they operate, we’re very much an
Australia and New Zealand based Company. And I’d note although there is annual elections
in, let’s say, the UK, it’s also the case that they don’t have rules such as the two-strikes
rule in terms of the remuneration report, which if there are two strikes, requires the board
to be willing to step down and stand for re-election.
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So I think my overall view on that would be that we will continue to follow best practice inAustralia and New Zealand. If there is to be any change in the way we operate, I’d belooking to see that as something that is done by a regulator or by law and that therefore
means we’re operating on a level playing field with other companies in this jurisdiction. I’mgoing to leave it at that because I don’t think any of our directors should have to make any
specific commentary on their personal motivation in terms of recent Board portfolios.
On to the next question please.
Kathryn van der Merwe: This question comes from Mr David Payne. I support and welcome
the appointment of Christine to the ANZ Board and wish her well. In addition to her pastexperiences and professional qualifications, I note that Christine is also a member of the
BHP Board and think that this is an important perspective that she may bring to ANZ.
Christine should give a direct link into the mining and minerals industry to provide insights
to ANZ regarding progression of this industry in dealing with future issues such asaddressing environmental and international market trends. Is the Board of ANZ of similarview to me?
Paul O’Sullivan: Yes, thank you Mr Payne for your question and actually, the Board is very
conscious when it looks at the makeup of the Board that we’re looking for complementaryskills and for a variety of perspectives but also people with deep corporate governanceexperience who can make sure that we operate ANZ at the highest level of governance interms of how we perform.
So Christine brings many perspectives. You’ve mentioned BHP. She has also been on theboard of Medibank and Stockland. She also has extensive experience working ininfrastructure and finance in Australia and with regulators. So we do believe she brings a
number of important dimensions to the Board.
Let me also add that your Board has undertaken a formal process to look at the skills weneed as the banking and financial services industry evolves over the next few years andwe’re working consciously on how we evolve the participation and skills in the Board to
make sure we’re well placed for that. Thanks for your question. As there appear to be nofurther questions, I’ll now show details of the proxies received before the meeting.
We now come to the re-election of Sir John Key. Sir John joined the Board in February
2018 and was elected by shareholders at the 2018 AGM. Sir John is retiring in accordancewith the Company’s constitution and being eligible offers himself for re-election.
Unfortunately, Sir John has been prevented from travelling because of the restrictions
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around travel from New Zealand so we’ll now play a short presentation from John insupport of his candidacy.
Sir John Key: Hello, I’m John Key. Thank you for the opportunity to say a few words. I’mseeking your support for re-election onto the ANZ Group Board. For the last four years,
I’ve been in the privileged position of being Chairman of ANZ New Zealand and for the last
three years, serving on the ANZ Group Board. As you may know, ANZ New Zealand is thelargest asset that the group owns outside of Australia and we’re very significant in that we
represent around about a quarter of the Group’s earning. I’d like to think that I bring to
the Group Board a better understanding of the insights, challenges and opportunities here
in New Zealand and so that the directors in Australia have a better understanding of thoseissues.
I also serve on the Group Board in a number of committees: on the Digital Committee, on
the Risk Committee and the Ethics Committee. As well as being on the board of ANZ New
Zealand and Chairman here at ANZ Group and here in New Zealand, I’m also on the boardof a company called Palo Alto Networks based in Silicon Valley. We’re the largest cybersecurity company in the world and so that gives me an opportunity to have a better
understanding of what’s happening in the digital space which is obviously having a very big
impact in the financial services sector and also on the issue of cyber security.
So I seek your support for re-election and I pledge to you that I will work as hard over the
next three years as I have in the last three years and in these challenging times for what isin the best interests of the shareholders of ANZ.
Paul O'Sullivan: Thank you Sir John and, Kath, I’m going to pass to you to see are there
any questions?
Kathryn van der Merwe: Yes. We have a question from Mr Steven David Mayne. I
strongly disagree with the position taken by ASA company monitor John Whittington in
proposing to vote almost $200 million worth of undirected proxy votes from more than
1000 ANZ shareholders against the election of former New Zealand Prime Minister John
Key solely on the grounds that he doesn’t own enough shares in the Bank.
As an unlicensed proxy advisor for retail investors and Australia’s only proxy aggregation
solicitor, ASA should be super cautious with its against recommendations. Could John Key
and the Chairman please respond with some commentary on the controversial ASA
recommendation and whether Mr Key intends to acquire any more shares in the periodahead.
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Paul O'Sullivan: Thanks, Steven for the question and, for the benefit of the wider audience,
this relates to a requirement we have on the Board that directors hold at least 100% of
their member fee in the form of shares or capital notes and that I as Chair in fact hold200% and there is time given to get to that minimum holding level. That’s about ensuring
we have strong alignment between the Board and the shareholders that we represent.
Sir John is well aware of his obligations. Actually, he is within the guidelines in terms of
his policy holding and is on track to meet his commitment by 2023. He is well aware ofthis obligation and he has given a commitment to ensure that he meets that timeframe
and in fact recently has made some additional acquisitions.
In terms of Sir John on the Board overall, can I just say that as ANZ shareholders, we arevery fortunate to have someone who’s not only deeply involved in the New Zealandbusiness and social community but also has an extensive global network.
He mentioned Palo Alto Networks, one of the world’s leading cyber security firms. John’salso by virtue of his history in leading New Zealand very well connected globally and bringsa unique global perspective to the Board so we are very fortunate to have him. Thankyou. I’ll take the next question please.
Kathryn van der Merwe: We have a question on the phone from John Whittington from
ASA. Operator, please put him through. Welcome John. Please proceed with yourquestion.
John Whittington: Mr Chairman, I have a question for Sir John in the same way I did for Ms
O’Reilly as we prefer to hear directors up for election speak live to the meeting andregarding Mr Main’s question, we agree on some things and we disagree on other things
but the ASA has a strong belief that directors should have skin in the game after seeing
many examples where directors without skin in the game have led companies to bad
results.
So my question is for Sir John. Sir John, after three and a half years on the Board, ourcalculations show that you are not on track to meet ANZs non-executive director
shareholding guidelines let alone the ASAs. We see this as a lack of commitment to or
confidence in the Company. When are we likely to see you hold what we would consider
adequate quote skin in the game unquote? I.e. shares equivalent to one year’s total fees.
Thank you.
Paul O'Sullivan: John, thanks for the question and it’s possible that because you’re on thephone, you may not have heard my previous answer but I have already answered that.
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Sir John is currently within policy in terms of his holdings. He is aware of the requirement
to increase his holdings by 2023 and he’s given a clear timeframe and commitment inorder to achieve that and absolutely, our whole policy is designed for exactly the reasons
you’ve said. We want to ensure that I and my fellow directors are aligned with all of ourshareholders that we represent in terms of having skin in the game. So thank you and I’ll
take the next question please.
Kathryn van der Merwe: This question comes from Stephen Mayne. ANZ has long been
the largest lender to Australia’s notorious gambling sector which is now fleecing around$25 billion a year from Australian gamblers equivalent to $1000 a year for every
Australian. This is 40% more in per capita terms than any other country. Hailing fromNew Zealand, was Mr Key aware of ANZs prominence in the gambling sector and could heand the Chair both comment on whether ANZ should treat its gambling sector exposure ina similar manner to its fossil fuels exposures.
Also why haven’t we followed the lead of Macquarie, Citibank and many other major
lenders by banning our credit cards from effectively being used to provide cash advancesfor gambling when this is the most expensive form of credit ANZ currently provides.
Paul O'Sullivan: So congratulations Stephen on finding a way to get a question for Shayne
and I into a question when it comes to election of directors but this is really a question for
us about ANZs exposure to gambling and let me start by answering the first part of it interms of the policy and then Shayne can answer the question in terms of credit cards andwe have made some steps in terms of how we handle credit cards.
But in terms of the first part of this, I’ll just note that gambling - the companies that wework with operate in a highly regulated sector including regulation by AUSTRAC and so weare very aware of the obligations they have and whether or not they are complying withthem. It is on the record that we are a significant lender and financier of Crown and wehave been watching closely with developments through the year. It’s also the case has
emerged in some of the public enquiries that we had declined to bank some of thetransaction accounts which were the source of controversy during those enquiries which isa demonstration of the controls that we have around the way in which we engage with thegambling sector.
I’m going to ask Shayne to comment on the steps we’ve taken to provide greater
protection for credit card holders who might be in a vulnerable position if they’re at agambling establishment.
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Shayne Elliott: Thank you and thank you Mr Main for the question. Look, we take this we’ve thought a lot about this issue. I think the difference for ANZ is we are a main bankprovider for many people in the community who look to use their credit cards widely for all
sorts of purchases, many of whom pay off their balance regularly and don’t occur - don’t
incur any interest at all and giving that some thought and also making it practical for
people to go about their daily lives and partake in what is legal activity, we have put inplace some of the strictest controls in terms of the usage of those credit cards.
So for example, there’s a limit within your ability to use cards at ANZ for - at a gaming we don’t allow them to be used in gaming venues per se but for example, there’s a limit on
how much you can use of your limit and it will stop you going above that sublimit for
gaming purposes or if we see extreme levels of activity that are used in gaming venues. I
will just point out that it’s not quite as simple as it sounds.
So for example, if you were to go to your local corner newspaper store or something andbuy a lottery ticket, that term - it’s very difficult for us for that card to know are you
buying a newspaper or are you buying a lottery ticket?
So those are some of the practical things that we’ve put in place but I can assure you wetake it seriously. We’ve had people come in from the sector to talk to us about making
sure that we are banking responsible operators and that we have put in place as I
mentioned some of the toughest credit card controls that we think are responsible and get
the balance right for our customers.
Paul O'Sullivan: Thank you Shayne and I’ll take the next question please.
Kathryn van der Merwe: Question from David Payne. Is Sir John involved with any
charitable organisations? Thank you.
Paul O'Sullivan: So a good question Mr Payne and I have to honestly answer I’m not in aposition to give you a specific answer to that. I’m pretty sure he is and given his extensive
involvement in the New Zealand community, I would imagine he’s involved in manydifferent organisations. What I’ll do is I’ll take the question on notice and we might justprovide something on our website to update his biography so you can see that next timethat you check in. Next question please Cath.
Kathryn van der Merwe: Thank you Chairman. There are no more questions for thisresolution.

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Paul O'Sullivan: Okay. Well, with no more questions, I will now show details of the proxies
received before the meeting.
We now move to matters concerning remuneration and Item 3 concerns the adoption of
the remuneration report. Full details of how we structure compensation are contained in
the remuneration report which is included in the annual report. To give you an overview ofboth the remuneration report and the proposed grant of performance rights to Shayne
which is the next item of business, I now invite Ilana Atlas, the Chairman of the Human
Resources Committee, to say a few words. Over to you Ilana.
Ilana Atlas: Thank you Chairman. Good afternoon shareholders. Despite difficult trading
conditions in financial year ’21, management delivered a solid result that positions us wellto take advantage of future opportunities. Our results highlight we are now a much
simpler and lower risk bank with a strong diversified portfolio. Management delivered
satisfactorily against our objectives exceeding or meeting most while also acknowledging
there are areas where continued focus is required to improve.
We believe the Board struck the right balance in rewarding our executives for good
performance while taking account of shortcomings. We’ve also balanced the year’s resultswith the significant work done to prepare the Bank for long-term success.
I know there’s always strong interest from shareholders in the performance andremuneration of our CEO. Shayne successfully led ANZ through a challenging year
progressing our key initiatives while also responding to the impacts of the pandemic.
Shayne personally role models ANZs values and is a respected leader amongst staff andexternally. He also continues to engage well with regulators and government andproactively manages our reputation.
While the Australian home loan issue was a key factor impacting the overall assessment of
the CEO’s 2021 performance, the Bank ended the year stronger financially and ready forthe challenges and opportunities of 2022 and beyond. This resulted in an annual variable
remuneration outcome of 53% of maximum opportunity for the CEO. For 2021, Shayne
had no increase to fixed remuneration.
For disclosed executives the average variable remuneration outcome was 60% of
maximum opportunity. There were no increases to fixed remuneration other thanadjustments to three executives in May 2021 as a result of their roles expanding following
the departure of the former deputy CEO.

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Today we are seeking your approval for the granting of Shayne’s performance rights. We
noted in the remuneration report that the performance rights rewarded in December 2017
were tested at the end of last year. 43% of the performance rights vested and theremaining 57% lapsed.
The performance rights awarded in December 2018 were recently tested on the third
anniversary of the grant and I’m pleased to advise have partially vested. This partial
vesting related to ANZ’s total shareholder return compared to its financial services
comparator group over the three year performance period.
This resulted in investing 52% of Shayne’s total long-term incentive for that award. The
remaining 48% of that award did not vest. The vested performance rights have been
converted to shares and are subject to a further one year restriction period, which
commences on the vesting date.
Now turning to the future, we’re seeking your approval today to allocate performancerights to the CEO with a current face value of $3.5 million at full vesting. This is the same
face value as last year. Whether Shayne receives any value for these performance rights
will again depend on the extent to which the performance hurdles in each Tranche are met
in four years’ time.
They will be delivered in two Tranches with forward-looking performance hurdles. These
are: Tranche 1, 75% of the rights measured on ANZ’s total shareholder return relative to afinancial services comparator group. And Tranche 2, 25% of the rights measured against
the absolute total shareholder return target set out in the notice of meeting. The hurdles
remain very challenging and the Board recommend shareholders vote in favour of items 3
and 4. Thank you to you all and I look forward to seeing you in person next year. Thankyou, Chairman.
Paul O’Sullivan: Thank you, Ilana and, Kath, are there any questions regarding the firstpart of Ilana’s presentation namely the adoption of the remuneration report?
Kathryn van der Merwe: Yes, we have a question on the phone from John Whittington fromthe ASA. Operator, please put him through. Thank you John, go ahead.
John Whittington: (Shareholder) Mr Chairman, there’s a problem. I actually wanted to go
back in the queue for a question regarding Mr John Key and wondering if we could hear
him live at the meeting. Unfortunately the system’s obviously dropped me into the next
item.
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Paul O’Sullivan: My apologies John and we had Sir John available on the line but I think
we’ve probably moved forward from that so I’m not sure he’s available now. But I would
be happy to take your question and see if I can answer it on his behalf.
John Whittington: (Shareholder) Well, as I asked in the previous question, which you
answered, I was actually asking him to answer that question about his intentions regarding
his shareholding.
Paul O’Sullivan: Okay, well look I don’t want to create a logistical nightmare by trying toreconnect whatever connections there were. So I’m just looking around the room to see
where we’re at. So look, he has given us a specific commitment that he will be in line with
policy and meet his obligations by 2023.
My apologies, John, if we misunderstood the situation but look, hopefully I’ve answered
the question for you and I will just note Sir John was available on the phone so it’s mymistake if we didn’t connect you to him. Thanks for that and we will move on to the nextquestion please.
Kathryn van der Merwe: Thank you Chairman, we have questions from David Payne. First
question, I think the remuneration structure is reasonable, clear, and not excessive. Will
the remuneration structure remain the same for the current financial year, i.e., FY22? If
not, what changes are being made?
And the second question, are the remuneration structure and targets for each financial
year put into place prior to the commencement of the financial year? I would expect this tobe the case if they are to be true performance payments based predetermined,measurable targets.
Paul O’Sullivan: Thank you for the question, Mr Payne. In the annual report in the
remuneration report section, you will see that Ilana has outlined some changes that we are
anticipating in the year that lies in front of us right now.
Those are driven by regulatory requirements with an instrument called CPS 511. That’s
partly influenced by the Royal Commission looking to govern the way in which bankexecutives are remunerated. And we are required to comply with that.
So we flagged in Ilana’s letter in the annual report the key changes that we anticipate
making this year and before we make them we will be doing further consultation withmajor investors and with regulators before we finalise them.

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But effectively they consist of, first of all, some changes for the disclosed executives interms of the annual variable remuneration and the long-term variable remuneration.
Effectively, in terms of our long-term scheme that’s operated with Shayne, it’s actually
only vested twice and partially vested twice in the last eight years.
So there are some doubts about its effectiveness in doing what you would want us to do as
shareholders, which is to motivate performance and set goals that align management withshareholders.
So the first change we’re looking to make is to reduce the annual variable remuneration
quantum but to provide more certainty around the potential vesting of the long-term
variable remuneration.
The second change we’ll make is in line with the requirements of the regulator around the
CPS 511 and that is to extend the vesting periods. They’re currently of the order of four
years. They’ll move out to five and six years, depending on the relevant Executive.
The third change we’ll be making is in line with that to extent or to introduce clawback andmalice for bonuses and finally, what we’ll also be doing in the case of our disclosed
executives, is similar to what we do with Shayne today, introducing our long-term variable
remuneration scheme, similarly structured to what he has. Today they’re on an annual
variable remuneration scheme but which has a longer vesting period.
So those are the key changes. They will be implemented this year after widespread
consultation. I think we’ve flagged very clearly what they will be about and we will provide
an opportunity for shareholders to vote on them at the next AGM where they’ll be part of
the remuneration report.
In terms of the goals and objectives that drive the measurement of executives against
performance, those are set in advance of the year and they’re approved by the Board at its
meetings before the financial year gets underway.
As you quite rightly point out, it’s important that it’s clear for Management how we’regoaling them and how we are assessing the performance. You can see details of how we
did that for the previous year in the scorecards that are included in the remuneration
report section of the annual report.
Thank you and I’ll take the next question, please.
Kathryn van der Merwe: This question comes from Steven Shuster. Would the new
Chairman be prepared to follow policy clawback guidelines on Executives if it is proven that
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they preached the Bank’s policies, including the code of conduct, reputation, OH and S,
and HR and employee relations charters?
Paul O’Sullivan: Thank you and I think it’s a question for the Board as much as it is for the
Chair but the answer to it effectively is, provided we were operating within therequirements of the regulator, that we absolutely would. I think it’s an important that weare able to demonstrate to shareholders and indeed to Management that we do exercise
the accountability.
But as I said earlier, I’m also very firm on there needing to be natural justice and we needto make sure we fully investigated and understood any of the situations which might giverise to their being a potential for clawback.
Kath, any other questions?
Kathryn van der Merwe: No, Chairman, there are no more questions for this resolution.
Paul O’Sullivan: As there are no further questions, I will now show details of the proxies
received before the meeting regarding the remuneration report. We now move to item 4,
dealing with the grant of performance rights to Shayne Elliott, which forms part of his at
risk pay, which Ilana also covered in her presentation.
The words of the proposed motion will now be displayed on the screen. Effectively, we’reseeking shareholder’s approval to grant Shayne Elliott 126,353 performance rights. The
number of performance rights was determined by dividing the face value by the volume
weighted average price of the Company’s shares traded on the ASX in the five trading days
up to and including 22 November 2021 and that’s the start of the four year performance
period. That price was $27.70 and we announced it to the market on 24 November 2021.
The number of performance rights that Shayne will ultimately be able to exercise andtherefore the number of shares he will ultimately be entitled to require will depend on theextent to which the relevant performance conditions that Ilana outlined are met.
Details of those performance conditions are set out in the notice of meeting and as I said,
Ilana has provided an overview of them in her summary. The Board, excluding Shayne
because of his interest, recommends shareholders vote in favour of item 4. So I’m going topause now and see if there are any questions.
Kathryn van der Merwe: There is a question from Stephen Mayne. Please advise
approximately how many of ANZ’s 550,000 shareholders voted either directly or by proxy
before today’s meeting commenced, including on this LTI grant resolution.
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Why weren’t shareholders who haven’t signed up for electronic communications sent a
printed copy of the notice of meeting and proxy form? Isn’t this a form of voter
suppression? Particularly for elderly investors who aren’t confident navigating the internetor online voting.
Finally, when disclosing the outcome of today’s resolutions, including this LTI grant, could
you please include data on how many shareholders participated in the vote? Similar towhat happens with a scheme of arrangement.
Paul O’Sullivan: So let me take those questions and I’m looking at the screen, Stephen,because there’s quite a few questions in there that I want to unbundle. So first of all, we’ll
be showing the proxy votes very shortly that people can look at before they cast their voteif they haven’t already.
In terms of the printed copy of the proxy form, I think I answered that earlier in terms of
the question that came from John Whittington and said that given the representations thathave been made, I’m looking that we would include a printed copy of that on the back of
the Chairman’s letter for the next meeting.
Certainly, it is absolutely not our desire to have any voter suppression. I would hope thatthe way in which we’re running this meeting and the way in which we’re providing
ourselves available for questions demonstrates that we actually encourage and seek active
participation by shareholders.
The next question you had was in relation to the outcome of today’s resolutions, including
the LTI grant. You wanted us to show how many shareholders participated in the vote.
What we’ll show is the number of votes cast.
I’m not sure that there’s much value in showing number of shareholders because of thevariety of ways in which shares are held. They can be held through beneficial ownership,people invest in large funds through their superannuation. So I’m not really sure thatwould add a lot of value so the answer at this stage is that no, we wouldn’t be reporting on
that.
I’ll pass on to see if there are any other questions, please, Kath?
Kathryn van der Merwe: Yes, there’s a question from Wolfgang Frank. 75% of the CEO’s
LTI is measured against the TSR hurdle. Vesting commences if TSR reaches 50th percentileof the comparator group, being other domestic and global banks.

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Bonuses are paid to reward out-performance, achieving a 50% of comparator group is justa pass mark and not out-performance. Should the threshold be increased to 75th
percentile?
Paul O’Sullivan: Thank you, Mr Frank, for your question and let me take a step back andjust say, the purpose of our remuneration, of course, is to attract talent and to motivate it
and to encourage it to perform and to reward it for that performance.
In terms of the relative performance you talk about, I’d note that actually our approach isconsistent with practice in the market. So that’s important, obviously, if we want to attract
talent.
Let’s also unpack what do we mean by the 50th percentile? What we mean is that if you
look at the average performance in the market, we’re performing in line with that. So our
returns are as good as the average in the market and we think it’s appropriate that wegoal people to begin their threshold with vesting at that level.
If you go to the 75th percentile, what that means is, you’re actually in the top 25%
performers in the market and that’s why we choose between 50 and 75. I think in fairness,any performance above the average should be rewarded. That’s why we’ve chosen 50 and
75. We think it’s very appropriate and it is very much aligned with the returns that we give
to shareholders. Thank you and I’ll take the next question, please.
Kathryn van der Merwe: Thank you, Chairman. There are no more questions for thisresolution.
Paul O’Sullivan: Okay, well - and as Stephen was asking, I will now show details of theproxies received before the meeting. Thank you and now we come to the long-awaited
item 5.
Item 5 is an external proposal to amend ANZ’s constitution. This item has beenrequisitioned by a group of shareholders who hold approximately 0.01% of the Company’s
ordinary shares on issue. The wording of the resolution will now be displayed on screen.
The effect of this item would be to amend ANZ’s constitution to allow shareholders to put
non-binding advisory resolutions to general meetings such as the one you see in item 6
and full details are set out in the notice of meeting.
Let me just stress that this item is not endorsed by the Board. As set out in the notice ofmeeting, it is the Board’s view that there are other appropriate mechanism available toeffect change rather than to seek to change the constitution of individual companies.
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For item 5 to be passed, at least 75% of the votes cast by shareholders who are entitled tovote on the resolution must be voted in favour of the resolution. If item 5 is not passed as
set out in the notice of meeting, I will not put the resolution proposed in item 6 which is an
example of such a non-binding resolution, to the meeting.
But, as mentioned earlier in the meeting, I will now take questions on both item 5 anditem 6. Before we go to general questions and to demonstrate the openness and the desire
to have participation in this meeting, I would like to give Jack Bertolus from Market Forces,
the opportunity to say a few words on the resolution. Kathryn, do we have Jack on theline?
Kathryn van der Merwe: Yes, Operator, please put Jack through. Welcome, Jack. Pleaseshare you statement.
Jack Bertolus: (Shareholder) Hi, I’m Jack Bertolus from Market Forces. We worked withshareholders to coordinate items 5 and 6 and I’ll speak briefly today in favour of theresolution calling on ANZ to commit to no longer finance new fossil fuel projects and to
disclose targets to reduce fossil fuel exposure consistent with net zero greenhouse gas
emissions by 2050.
ANZ supports the net zero by 2050 goal. Climate science and energy modelling make it
abundantly clear that achieving this goal leaves no room for new fossil fuel projects andrequires rapid declines in the production and use of coal, oil and gas.
Yet ANZ continues to provide funding for new fossil fuel projects and the companies
pursuing them. Notably, its recently updated climate policy fails to rule out further funding
for new oil and gas projects or companies engaged in the development of new thermal
coal-mining projects and allows the Bank to retain or increase its $14.6 billion of exposure
to oil and gas.
This resolution therefore presents a necessary opportunity to bring ANZ’s fossil fuel lending
into line with its stated support for global climate goals. Failure to bridge this gap would
leave ANZ exposed to needless financial climate change transition risks as well as
reputation and legal risks as the world moves to rapidly decarbonise.
Shareholders do not want to see this Company exposed to stranded fossil fuel assets,
being publicly called out for funding climate-wrecking companies or for being sued overinconsistencies between its statements and actions.

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We therefore ask shareholders to support this resolution with the long-term interests andsustainability of the Company in mind and thank those that have already cast votes infavour of this resolution. Thank you.
Paul O’Sullivan: Thank you, Jack and thank you for explaining the resolution to us. So
Kath, I’m going to pass over for any questions.
Kathryn van der Merwe: Yes, thank you, Chairman. We’ll start with two questions from
Stephen Mayne. Question 1, given the interesting discussions across a range of topics
today, including this constitutional amendment, could the Chair undertake to make anarchived copy of the webcast plus a full transcript of proceedings available on the
Company’s website?
The second question, I remain puzzled why Australian Boards with the support of the ASA
continue to recommend against these constitutional amendments that would give
shareholders a greater voice at the AGM. By allowing them to put up opinion-based
resolutions similar to item 6 today and similar to what happens hundreds of times every
year in the US, did you seriously examine the issue or just automatically recommend
against it?
Paul O’Sullivan: Thank you, Stephen and I’ll take your first question, which relates to therecording of today’s proceedings. We do have an archived version of last year’s meeting
available on our website and we will do that again this year. Given your representations on
this matter, I will also undertake that we will provide a transcript of the meeting on thewebsite. So thanks for your activism on that.
In terms of your second question, I think, as this meeting demonstrates, it’s notparticularly difficult to put up a resolution to this meeting. It’s also the case that weengage very widely with a range of stakeholders ongoing so there are numerous ways inwhich people can have access to ANZ and its leadership. That includes the fact that ourteam meet with many of the environmental NGOs on a regular monthly basis.
So I don’t see at this stage that there is a great difficulty in being able to put up
resolutions. However, when it comes to the issue of the Company constitutions andamendments, we actually think this is an area that requires serious consideration. We also
think it is important to have a consistent approach for shareholders to understand acrossall companies and for there to be a level playing field.

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So we would look to see that as an area that should be governed by change driven by aregulator or by the law and not done on a piecemeal basis by individual companies. Thanks
for your question and Kath, next question, please.
Kathryn van der Merwe: Yes, thank you. We have a question on the phone from Daniela
Osiander. Operator, please put her through. Welcome, Daniela, please proceed with yourquestion.
Daniela Osiander: (Shareholder) Yes, so I do note that there is a little bit of a drug dealer
response going on here in response to [new] lending to fossil - to new fossil fuel projects,
so I actually think this is a very good idea with this solution but anyway, my question was- and it has been moved onto this agenda item.
In October last year, the United Nations Environment Programme Finance Initiative, UNEP
FI, signed an open letter requesting that assumptions made by companies in preparing
financial statements under IFRS be compatible with the Paris Agreement.
As a member of the UNEP FI, what consequences do our clients, particularly those in highemitting sectors such as energy, face if such assumptions are not disclosed?
Paul O’Sullivan: Right, thank you Daniela for the question and I’m not sure I’m fully - I
fully understand some of the second part of your question but I think really what you’reasking there is for us to understand our obligations in terms of disclosure and how - whatsort of transparency and visibility we’re giving to those as we do our annual publications of
our results and other matters.
On that, I’d note that we do follow and we’re the first Australian bank, to follow the TCFD
mechanism for disclosure and we do provide a very comprehensive set of metrics anddisclosures in our annual ESG supplement, which I’ve actually got in front of me here.
I’m not sure if I’ve fully understood or answered your question but perhaps if I haven’t,
you could issue a supplementary to me and I’m happy to receive that through our Investor
Relations Team so I can make sure I answer it adequately. Next question, please.
Kathryn van der Merwe: The next question is from Rowena Macrae. I’m a mother of five, abusiness owner and a farmer from Coonamble, north central New South Wales. Gas
pipeline company, APA Group proposes to run its Western Slopes Gas Pipeline straight
through properties in our community, including my own, and lacks the consent of many
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APA would bulldoze everything in its path to lay the pipeline with no regard for prime
agricultural land, a rich array of cultural heritage sites and critically, our only source ofwater. Worse still, the pipeline will transport gas from Santos’ highly opposed Narrabri gas
project, enabling further disastrous impacts on our community.
As a funder of APA and Santos, when will ANZ commit to no longer fund invasive gas
companies that have no regard for our environment, businesses and communities? I’m notasking for your comment on particular clients.
Paul O’Sullivan: Thanks, Rowena for clarifying that because yes and you - I don’t thinkanyone watching would want a bank to be discussing their relationship in a public forum
but if I take the question in a general sense, we are very conscious of the importance of
this issue both ethically and reputationally.
We actually have a very clear and strong framework and policy that governs who we lend
to and what we lend for. As part of that, our bankers are required to understand what is
the impact that the customer may have in terms of their impact on the community. That
could be in terms of infrastructure. It could be in terms of the environment. It could be interms of a number of areas.
We not only seek to ensure that they’ve correctly identified that but we also want to see
how they’ve engaged with the regulators who govern those specific issues and if there are
any affected communities, what engagement has been done with them.
We would want to be confident that that’s all been done in an appropriate and responsible
way. If we don’t see that, then we won’t lend or if we see a deviation from that while we’rein a lending relationship, we would seek to cut the lending and move away over time
unless in consultation with the customer, there is significant action to address it and to
rectify it.
So we’re very aware and conscious of the potential impact of our customers on theircommunities and it is something we take a very structured approach to in making ourdecisions on lending. Thanks for your question and I’ll move on to the next question,please.
Kathryn van der Merwe: The next question is on the phone from Belinda Baggs. Operator,
please put her through. Welcome, Belinda. Please proceed with your question.
Belinda Baggs: (Shareholder) Hi, I’m co-founder of Surfers For Climate and living here on
Wathaurong Country on the Great Ocean Road of Victoria. My family and I rely on healthy
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oceans for our livelihood but more importantly, surf, swim and share life experiences. Forus, the coastline isn’t just a place to visit but it’s a part of who we are.
I’m aware that ANZ co-arranged a $600 million loan for Beach Energy in October. Beach
Energy is currently pushing ahead with its plan for risky gas pipelines through Port
Campbell National Park and expressed interest in further industrialising the pristine andwild ocean west of Apollo Bay.
Between threats of seismic testing, spills and obvious heightening of emissions caused bygas, I’m extremely concerned what the future will hold for the community here and I don’t
understand why any bank would be funding new fossil fuel projects in a climate emergency
when there are abundant renewable alternatives.
When will ANZ commit to provide no further funding for companies pursuing destructive
offshore oil and gas drilling in our beautiful marine environments?
Paul O’Sullivan: Thank you for your question and as Belinda said - sorry, as our previous
caller said - obviously I won't discuss individual customers in responding. I also, I think in
the last question, covered off who we bank and what we bank so hopefully you had achance to hear the explanation in that.
Let me turn to your question on fossil fuels, and the reality is that there is a significant
transition required for the world to make a successful move from its current dependency
on fossil fuels to a lower carbon future. If we don't do that in a very measured andsystematic way, we run the risk of lifting energy prices very significantly, which would
actually have the most significant detriment and impact on people who are on lower
income and people living on the margins.
So, in our approach to fossil fuels, we're conscious that there is a need to make atransition to a lower carbon future. We're very clear; ANZ will only lend to fossil fuelcompanies that have a clear, publicly committed plan for moving to lower carbon
emissions that is consistent with the Paris Agreement goals of net zero by 2050. Those
plans have not only got to be public, they've got to have clear metrics, strong internal
governance and be time-bound.
But we think that's a responsible approach because by doing that, we will be funding
companies to invest in making the transition to a lower carbon future. It would be easier
this morning to put out an announcement saying, we're just not going to lend to fossil
fuels moving forward at all, and that might be a nice hit on social media and a number ofyou might applaud it.
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But actually, it would be very irresponsible, because what that would do is it would drive
those companies to seek finance from lenders who are not as scrupulous and who do nothave the sort of restrictions we have on insisting on time-bound plans to move to a lower
carbon future in line with the Paris Agreement.
We think we've taken the more responsible approach and that we're doing what is betterfor the community. I realise it's a really important and sensitive topic; hopefully mycomments give you a better understanding of our rationale and I thank you very much foryour question and for your interest. Next question please.
Kathryn van der Merwe: The question comes from [Bin Bin Maryana]. ANZ's client
Saptaindra Sejati is a subsidiary of Adaro Energy, one of the largest coal-mining
companies in my country, Indonesia, and operates as an undiversified coal-mining
contractor. Last year, Saptaindra Sejati produced 41.5 million tonnes of coal and critically,
up until this point, has not disclosed any plan to reduce its coal-mining activities in linewith the climate goals of the Paris Agreement or net zero by 2050.
This is entirely inconsistent with the conclusions of the International Energy Agency, whichfinds that lowering emissions to net zero by 2050 requires steep reductions in global coaldemand, starting immediately, falling by 55% to 2030 and by 90% to 2050.
In light of ANZ's commitments to the Paris Agreement and net zero by 2050, how does the
Bank justify giving undiversified coal producers at least another four years to publish
transition plans, and please note, I'm not asking for your comment on individual clients.
Paul O'Sullivan: Thanks, Bin Bin, thanks for your question, which is clearly well researchedand very thoughtful. Let me just take that in terms of a couple of important perspectives.
First of all, we have made a public commitment to reduce our lending to thermal coal overtime; it's down 75% since 2015 and it's now roughly [0.1%] of our balance sheet, so it's a- been a significant reduction.
But in terms of your general question on working with those high carbon emitters, we havemade a public commitment to engage with our top 100 carbon emitting customers, andthat includes those involved in the coal sector and in our ESG supplement this year, whichis available on the website; you can see details of the progress we're making with thosecustomers.
We've talked about the classification of the various stages of their plans, and we actually
have a bar chart which shows a percentage of them complying with our requirements at
different levels in terms of targets, governance, disclosure, et cetera. So, it's not the case
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that we're giving them until a future date in which to make up their minds whether to getthere, we're actually working with them now to make sure that we're working with them todevelop clear partnership plans that will allow us to fund them and support them in getting
to a lower emissions future.
To show our sincerity on this and to demonstrate to you that this is not about us sittingback and waiting, there was an event during the year where we felt that a customer was
not developing a significant enough plan. There was significant publicity on that in themarketplace, because we made the somewhat controversial decision to no longer provide
finance to that customer and to exit our arrangements with them. So, hopefully thatprovides some confidence that ANZ is walking the walk and not just talking the talk.
Thanks for your question. Next question, please.
Kathryn van der Merwe: The next question is on the phone from Jane McNicol. Operator,
please put her through. Welcome, Jane, please proceed with your question.
Jane McNicol: Yes. Thank you. I actually have two questions and I'll ask them one after theother. The International Energy Agency stated earlier this year that no new fossil fuelprojects could be approved in order to achieve net zero by 2050. In light of this, when will
ANZ commit to provide no further finance to companies such as Woodside and BHP, who
are planning to develop the controversial Scarborough gas field off the WA coast?
My second question is that there is now irrefutable scientific evidence that the 40,000year-old Murujuga rock art on the Burrup Peninsula in Western Australia is being destroyedby acid rain, produced by local industry. What is happening to this UNESCO short-listed
rock art, has been defined as a Juukan Gorge in slow-motion. Woodside's proposed
expansion of its Pluto facility would only exacerbate this process.
When will ANZ take a stand against the destruction of Aboriginal heritage, by committing
to provide no further financing to the companies developing the destructive Pluto
expansion project?
Thank you, Mr Chair.
Paul O'Sullivan: Jane, thanks for your question and also for your patience andperseverance, because if I recall correctly, you might have actually come in at the
beginning of the meeting with that question, as well, and they're both important issues.
I hope you heard my answer to the previous questions around fossil fuels, but shorthanding the response, effectively, we will only lend to energy companies who use fossil
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fuels who have a clear time-bound commitment to a lower emissions future, consistent
with the Paris Agreement. And for the reasons I explained, we think that’s far more
responsible than simply walking away and washing our hands.
In terms of the Indigenous communities, we have very clear lending policies andframeworks which require us to understand the impact that a customer may have on thecommunity in which they operate.
Let me say for the record, we are totally against the destruction of Indigenous heritage as
we’ve witnessed in terms of the Juukan Gorge and indeed we would support legislation andregulation which would protect it.
But moving forward, our own lending process will make sure that we fully understand thepotential impact a customer may have on a community and we will only lend in situations
where we are satisfied that the proper engagement and abidance by regulations is being
undertaken. Thanks for your question. So onto the next question, please.
Kathryn van der Merwe: Question from [Glen Walker]. The United Nations andInternational Energy Agency have both clearly said that Australia needs to stop burning
coal for power generation by 2030 to meet the goals of the Paris Climate Agreement.
Given the Bank supports the Paris Climate Agreement will the Board commit to aligning its
climate policies with this 2030 deadline as soon as possible by not funding companies
burning coal beyond 2030? And specifically, will the Board commit to not funding AGL or
its proposed spin-off company, Accel Energy unless that company brings forward theclosure of its coal burning power stations from 2035 and 2048 to at least 2030?
Paul O’Sullivan: Thank you for the questions. I think I’ve answered the question initially interms of funding fossil fuels. Although we have been quite clear that in terms of thermalcoal, that we would look to exit all direct financing of power generation using thermal coalby 2030 and we are well on track for achieving that.
I don’t talk about specific customers but I have been very clear in talking about thefunding policies we use in deciding whether to support lending or finance to any company
that is dependent on fossil fuels today and I don’t think it’s worthwhile repeating that. So
onto the next question please.
Kathryn van der Merwe: The next question is on the phone from [Abigail Sheppard].
Operator, please put her through. Abigail, welcome and please proceed with your question.

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Abigail Sheppard: (Shareholder) Good afternoon, sorry for my delay. I’m afraid my phone
is running out of battery. Thank you, my question that I asked earlier was in two parts andyou confirmed in respect to the first part of the question that you were aware of the legal
advice that I referred to by Mr Hutley that identified how important it is for companies tohave a reasonable basis for their statements about their climate goals and targets andabout the risk of greenwashing and the legal risks that follow from that.
Now, given your commitment to support the Paris Agreement’s goal to achieve net zero
emissions by 2050 and the International Energy Agency’s report which you’ve beenreferred to a number times about their plan, which states that there is absolutely no needfor investment in new fossil fuel supply. But ANZ has continued to finance the fossil fuelindustries. What my question was about is about whether you have been concerned that in
the light of Mr Hutley’s advice that ANZ is engaged in greenwashing?
Paul O’Sullivan: Thanks for your question Abigail and thanks again for your perseverance.
Let me just say this is an area of significant focus for your Board. In fact, I personally chair
the ESG Committee which looks as these issues and makes sure that we’re taking accountof the sort of opinions you’ve talked about and also to be very clear that we’re confident
the comments we’re making and the commitments we’re making about climate change areabsolutely appropriate and that there is no element of greenwashing.
Let me just say in terms of our commitments, we’ve been totally clear. The IEA scenario is
only one of a number of scenarios that guide our thinking on the future. We are absolutely
committed and are the first bank in Australia to sign up to the Paris Agreement
commitment to a net zero position.
We have in the last few weeks been the first bank in Australia to release specificdisclosures on the emissions intensity pathways that are associated with two of our highest
emitting sectors and how we will work with them to lower that intensity overtime and to do
it in a way that’s on a pathway consistent with net zero by 2050.
So I think, if anything, we’ve demonstrated a leadership position on this. We’ve been morethan transparent and our commitments to delivering on the Paris goals are probably far
more visible, far more measurable, than any other bank in Australia.
In terms of fossil fuels, I won’t repeat myself. I think we’ve been very clear, we will only
lend to fossil fuel companies that have a clear plan that aligns with the goals of the Paris
Agreement. So thanks for your question and hopefully I’ve provided some reassurance.
Next question please.
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Kathryn van der Merwe: Thank you, Chairman. I have a comment and two questions from[Accretion] Proprietary Limited. It seems that any question that even mentions fossil fuels,
coal, oil, gas, climate or environment gets fobbed off. The first question, our climate
related disclosures document shows our exposure to oil and gas has declined year-on-year
for the last two years but still stands at a significant $14.6 billion.
What has driven this decline and do we intend for this trend to continue? I note this $14.6
billion includes exploration, extraction, transport, refining, and retail of oil and gas. When
will we disclose a breakdown of our exposure to each?
The second question, we have $12.3 billion of exposure to electric utilities defined aselectricity generators that own or operate a mix of thermal and renewable generation
assets as well as transmission and distribution infrastructure. Major competitors
CommBank, NAB, Westpac disclose a breakdown of electricity generation exposure by fueltype, i.e., exposure to gas-fired power, hydroelectricity et cetera.
When will ANZ provide such a breakdown of our electric utilities’ exposure?
Paul O’Sullivan: Thank you for your question and can I just say, for anyone who’s been
sitting in on this meeting, it’s certainly not the case that we’ve been fobbing off questions.
What we have been doing is making sure we have discipline in where in the agenda wetake them so as to make sure everyone gets a fair crack at asking their questions. In
terms of the first part of your question, our oil and gas exposure has declined over timeand if you wanted to understand what’s the oil and gas extraction exposure we have, it’s
about 0.5% of the balance sheet.
So hopefully that gives you a sense of the relativity but let me also be clear that we arecommitted to supporting reductions in emissions from this sector over time so that we canachieve the Paris Agreement goals. So therefore, our support for this sector may go up or
down depending on the willingness of customers to sign up to those goals and they haveclear plans in place.
In terms of the second part of your question which is exposure to renewables. I’ll take on
notice your request for disclosure but just know it - and I’m running off numbers that I
have in front of me from a slightly earlier accounting period - but if I look at that, in termsof power generation, the majority of our lending if I look historically was to renewables inthat sector but nonetheless, I’ll need to double check on those stats and think about what
we disclose in the future. Thank you for your question.
So Kath, I’ll now go and see if there’s another question please.
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Kathryn van der Merwe: Yes, we have another question on the phone from Jack Bertolus.
Operator, please put Jack through. Welcome Jack. Please proceed with you question.
Jack Bertolus: (Shareholder) Hi. According to analysis from Market Forces, since 2016,
ANZ has loaned $2.7 billion to 14 companies pursing new or expanded fossil fuel projects.
Earlier this year, the International Energy Agency concluded that achieving the global goalof net zero emissions by 2050 leaves no room for new fossil fuel supplied projects yet ANZ
threatens to continue its track record of funding companies like New Hope, Santos andWoodside that are actively developing massive new and polluting coal and gas projects.
For example, major gas producer and ANZ customer Woodside recently announced its
intention to develop the largest gas project Australia has seen in a decade. Over its
lifetime, emissions from the Scarborough Pluto Project would total 1.6 billion tonnes ofCO2, equivalent to 15 coal-fired power stations running for 30 years. As a banksupposedly committed to net zero emissions by 2050 and the Paris Agreement, when will
ANZ commit to stop funding companies whose business plans are consistent with the
failure of these climate goals?
Paul O’Sullivan: Jack, thank you for the question. I think we’re in danger of getting to astage of being quite repetitive here because this is a variation of a question I think I’ve
answered a few times already but effectively, just to be really clear, we will only lend tocompanies that have a - fossil fuel companies that have a commitment to reduce
emissions in line with the Paris Agreement and in effect, although I’m sure you would lookat this from a different perspective but actually, we’re trying to get to the same place thatyou are which is a lower carbon future.
The second thing that I would also say is in terms of your question and the IEA scenario, it
is one of a number of scenarios that we’ve looked at and that has guided our thinking interms of our lending policies but I am being repetitive now. So I’ll halt there and just see
if there are any more questions on this - Resolutions 5 and 6. So Kath, back to you for any
other questions.
Kathryn van der Merwe: Yes, we have a question from [Leslie Hughes]. The science isabundantly clear that there is no room for new fossil fuel projects if we’re to achieve thegoals of the Paris Climate Agreement. Does ANZ acknowledge that funding new fossil fueldevelopments is not consistent with the goals of the Paris Agreement?
Paul O’Sullivan: I apologise to those watching online that we are getting a degree ofrepetition now so I think I’ve already answered that question several times. So I’ll move
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onto the next question please and if I’m seeing the same questions continuing to comethrough, I think we might decide that it might be time to allow a vote on the resolution.
Let’s move onto the next question.
Kathryn van der Merwe: From David Payne. Does the Bank appropriately assess proposed
renewables projects through an environmental lens prior to financing them. Example
some windfarm developments are devastating pristine bushlands and ecosystems andadversely impacting wildlife such as large birds. Components such as turbine blades areimported from countries which are the world’s largest greenhouse emitters and seemingly
have no credible plan to reach net zero by 2050.
Paul O’Sullivan: Yes. Look, thanks for the question Mr Payne and the short answer is yes,
we do look to assess the impact that our customers’ activities that we’re funding will haveon the environment and indeed on the communities in which they operate and actually,
I’ve seen a very specific example recently where we’ve also looked to understand the
manufacturer and the sourcing that’s involved where a particular type of renewable energy
equipment. So thank you for your question. Next question please.
Kathryn van der Merwe: Thank you Chairman. This is currently our last question and it’sfrom Doctors [Diana] and Peter Sainsbury. I asked this question by phone and areresubmitting it as directed by the Chairman. Page 7 of our 2021 Climate Related Financial
Disclosures states that we stress tested our agricultural portfolio for physical climate risk
under two warming scenarios and that this is summarised in a United Nations reportpublished three and a half years ago. The findings show declines in revenue of up to 12%
by 2025 and 22% by 2045 in a scenario of unmitigated global warming of four degrees
Celsius.
By contrast, in 2019, Commonwealth Bank disclosed that under the same scenario, theAustralian grains, livestock and dairy industries faced declines in productivity andprofitability of 40% to 50% by 2060. Given our $30 billion exposure to agriculture, whenwill we be disclosing the anticipated change in default rate of the Agricultural BusinessBook in a scenario of unmitigated global warming?
Paul O’Sullivan: Thank you for your questions Dr Diana and Dr Peter Sainsbury and theBoard does take an active interest in this and there are a variety of scenarios and stresstests that are applied and we review these particularly with a view to understanding thegovernance that’s applied in the Bank around risk because clearly, it’s in the interests of
the Bank that we manage our portfolio appropriately and that we’re pricing risk accordingly
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in terms of the exposure we have in various sectors and that was the reason why this
scenario was undertaken.
It’s an ongoing process where our scenarios are not set in time and put away in a shelf.
So we will continue to review it and continue to disclose the findings of those where wethink it’s relevant and necessary for the market to understand.
I understand there are now no more question for Item 5 and 6. Can I thank everyone for
their engagement on this very, very important set of topics and I absolutely welcome thesincerity and conviction that we’ve heard from all those calling in today. I think we’ve had
enough time now so and therefore I think it’s appropriate for us to move to the vote. So
with that, let me show the proxies received in terms of Item 5.
Ladies and gentlemen, I think we’ve given sufficient opportunity for questions on comment- for questions and comments on each item of business and that is now closed. Item 5 isthe last of the resolutions that are not contingent. As such and as the voting on items 2 to
5 has been open since very early on in the meeting, I will now close the electronic voting
on items 2 to 5 in approximately three minutes and while we wait for the results of thatvoting to come through, we’ll play a short video.
[VIDEO PLAYING] The Australian economy in aggregate is in very good health. Growth isstrong, unemployment has fallen and economic activity has been broadening to some of
the areas that have lagged the recovery like services and domestic travel. Broad sectoralconditions are also robust. Consumer fundamentals are the strongest in decades.
Business investment expectations have risen to levels not seen since the end of the mining
boom. Commodity prices are supporting the export sector and policy settings includinginterests rates are very stimulatory.
Not every sector or strata of the community is benefitting to the same degree. In fact,
one feature of this pandemic is that economic outcomes for some parts of the economy
and some parts of the labour market have been unusually divergent. Capital city tourism
and in fact, CBD activity in general continued to find conditions quite difficult. Somesegments of the community have found school closures and other restrictions particularly
challenging. The strong rise in house prices since 2020 while helpful to the economic
recovery, has worsened intergenerational challenges and widened wealth inequality.
These sectoral challenges are meaningful but the aggregate economic picture for Australia
is strong.

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Internationally, there are some parallels with this Australian story. Advanced economies
as a broad grouping and much of Asia have rebounded with vigour out of 2020s downturn.
That is likely to continue through 2022. Some economies have been increasing interest
rates and the US Federal Reserve as the global price setter for capital is likely to follow
over the next year. Australia will probably be a bit slower than that but interest rates ingeneral are likely to rise over the next year or two.
Unequal vaccine distribution and take-up has meant that not all sectors have yet returned
to normal operating conditions nor in fact all economies. The main global economic
challenge apart from COVID itself resolves around China. The world’s second largest
economy growing at between 4.5% and 5% in 2022 is still a very solid result but China’s
demographic outlook as well as other challenges imply this long-term trend to slower
growth is likely to continue in the medium to long term.
Climate change has emerged as something of an influence over this landscape over thelast couple of years. 80% of world GDP has a net zero carbon commitment, investment islikely to be higher as a consequence and capital increasingly prefer these exposures.
COVID-19 is unquestionably the largest single influence on the outlook. If COVID again
causes widespread movement restrictions, border closures and consumer and businesscaution, this economic story could be interrupted. Managed well, then growth is likely toremain strong, unemployment continue to fall and interest rates rise over the next year or
two. Heading into 2022, I’m hopeful we have COVIDs measure.
Paul O’Sullivan: The electronic voting on items 2 to 5 is now closed as is the ability tosubmit questions online. The results will shortly appear on screen and subject to a final
check by Computershare and KPMG, we will release them to the ASX later today. You can
see the results on screen now. The results show that each resolution having been passedwith the exception of Item 5 which has clearly not received the necessary support fromshareholders. As such, it has not been passed and so Item 6 will not be put at themeeting and a poll on it will not be held.
In addition, in the interests of transparency, I will now show the proxies received inadvance of the meeting in respect of Item 6. This concludes the formal business of themeeting. I can also confirm that we did not receive any further general questions on new
topics which have not been discussed. On behalf of my fellow directors, I thank you all for
attending this virtual meeting and for your ongoing interest as shareholders of ANZ. I
hope that as restrictions ease in the future, I and my fellow directors and members ofmanagement get to meet many of you in person at future AGMs.
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ANZ Banking Group Limited 2021 Annual General Meeting
16 December 2021
I now declare the meeting closed and on behalf of Shayne and myself, wish you all thevery best for the festive season.
End of Transcript

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