The Next Stage of ANZ’sTransformation
Realising the full potential of Super Regional

Mike Smith
Chief Executive Officer
18 March 2011

Agenda1. Super Regional - driving superior long-term growth anddifferentiated returns• Geographic coverage, more rapid economic growth, intra-regional
opportunities• New game with new rules
2. Consistent coherent strategy – connectivity driving competitive
advantage• Delivering on our promises• Super Regional capability and momentum
3. Future aspirations - the next steps in ANZ’s transformation journey• Connectivity - realising the full potential of Super Regional• Growth levers - organic, partnerships and M&A

1

Super Regional - driving long term growth anddifferentiated returns
Forecast GDP growth1 (% p.a, 2011-14)

UK
2.3%

Denotes two way merchandise trade flow3(2009)

FDI inward flow2 (USDb, 2009)

KR
4.0%

EU
1.6%

2

CN
78
8.7%
Asia-Europe
Trade: US$1.0trn

IN
8.5%
TH
4.5%

Intra-Asia
Trade:$1.6trn

MLY
5.0%
SG
4.6%

35

JP
1.6%

12

TW
5.1%

3

HK
5.0%

48VN
7.1%

85PHI
4.6%

2PNG
5.0%

0.4

US
2.7%

Asia-US
Trade: US$0.8trn

Pacific-Asia4
Trade: US$6bn

117

IND
5.9%

5AUS
3.2%

23

Aus/NZ-Pacific5
Trade: US$6bn

Aus/NZ-Asia
Trade: US$235bn
NZ
0.2
2.9%

Source: 1. Global Insight; 2. Bloomberg; 3. WTO; 4. IMF; 5. ABS and Statistics NZ.

2

New game with new rules

PreGlobal FinancialCrisis• High growth world• Unsustainably high credit growth• De-regulation• Plentiful inexpensive capital and funding• Centre of economic gravity with developedeconomies• Multi-speed world: Differentiated growth• Economic power shift to developing economies• Re-regulation• Capital and funding scarcer, more expensive• Deleveraging playing out, lower credit growth

3PostGlobal FinancialCrisis

Coherent strategy – driving competitive advantage
Geographic opportunity• Footprint - exposure to Asia‟s more rapid growth• Growing financial services requirements• Regional connectivity• Strong domestic markets
and businesses

LeadingSuperRegional
Bank

Building Super Regional
capabilities• Bench strength/international talent• Innovative product capability• „Throw and catch‟ capability andculture• Enabling technology andoperations hubs

• Global core brand, regional reach• Governance and risk management
Cross-border customer focus• Regional customer insights• Resources, agribusiness, infrastructure• Trade and investment flows• Migration/people flows, education

4

Delivering Super Regional performance momentum
OUTPERFORM
AND TRANSFORM
OUTPERFORM
 Move from a presence to areal business in Asia

RESTORE– 14% of Group Earnings– Beachhead in Greater
China, SE Asia, India, Mekong Institutional growth Maintain strong domesticfranchises

 Stronger risk and governanceprocesses Increased management
bench strength Increased internationalbanking experience Create hub foundation

 Balance sheet and capitalmanagement

2007-2009

Realise fullpotential of Super
Regional aspiration
Capturing value:• To Asia
OUTPERFORM• Within Asia
• From Asia

 Improving balance sheet
composition

 Improved funding diversity

2009-20105

2011-2017

Realising the full potential of Super Regional
2017
Aspiration

APEA sourced revenue to drive
25% - 30% of Group profit

Expanded view ofopportunity inAPEA• The more mature our business, the greater our opportunities• Increasing our footprint, customers and access to trade, liquidity

Domestic
outperformance• Regional connectivity will deliver additional revenue into

Centres ofExcellence• Hubs provide a lower and more flexible cost base – access

Focussedtechnology
investments• Technology roadmap focused on customer facing (e.g. internetand investment flows

Australia, New Zealand, Asia and the Pacificdeeper pools of talent, provide better service with lower riskbanking, goMoney) and cross-border systems (e.g. FX, CashManagement)

6Realising the full potential of Super Regional2017
Aspiration

APEA sourced revenue to drive
25% - 30% of Group profit• Continue to build depth in international management andPeoplebanking experience• Well defined succession planning• Remuneration and incentives aligned to delivery of strategy andmanagement of risk

Risk
Management• Risk management as a core competency– Increased expertise across the risk function– Comprehensive set of asset writing strategies– Product and segment expertise – focus on sectors we know
• Customer driven rather than product focused• Lower balance sheet intensity

Financial
Management• Greater balance sheet diversity• Reduced reliance on interest income• Funding flexibility
7

Growth levers - organic, partnerships and M&A

Continued Focus on Organic Growth
Leveraging Super Regional connectivity
Increasing productivity
Focus on core customers

Managing the value of ANZ‟sPartnerships

Selective M&A opportunities• Delivering access to attractive markets/segments• Linking partnership customers to ANZ‟sinternational network• Actively managing the portfolio tooptimise strategic positioning• Dislocation in global markets continuing
to create opportunities• Consistent M&A disciplines – onstrategy, delivers value, executable8Super Regional - long term growth, differentiated returns
OUTPERFORM
AND TRANSFORM

Consistent, coherent strategy driving
competitive advantage

Realise fullpotential of Super
Regional aspiration
Capturing value:• To Asia
OUTPERFORM• Within Asia
• From Asia

Super Regional capabilityand momentum
Delivering on our promises
Aspiration
APEA sourced revenue to drive
25% - 30% of Group profit
Growth levers
Organic, Partnerships, M&A

2011-2017
9

The material in this presentation is general background information about the Bank‟s activities current at thedate of the presentation. It is information given in summary form and does not purport to be complete. It is
not intended to be relied upon as advice to investors or potential investors and does not take into account theinvestment objectives, financial situation or needs of any particular investor. These should beconsidered, with or without professional advice when deciding if an investment is appropriateThis presentation may contain forward-looking statements including statements regarding our intent, belief
or current expectations with respect to ANZ‟s business and operations, market conditions, results ofoperations and financial condition, capital adequacy, specific provisions and risk management practices.
When used in this presentation, the words“estimate”, “project”, “intend”, “anticipate”, “believe”, “expect”, “should” and similar expressions, as they
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the result of any revisions to these forward-looking statements to reflect events or circumstances after thedate hereof to reflect the occurrence of unanticipated events.
For further information visit

www.anz.com
or contact
Jill Craig
Group General Manager Investor Relations
ph: (613) 8654.7749 e-mail: jill.craig@anz.com