Investor Discussion Pack
Mike Smith
Chief Executive Officer
AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
June 2011

Investor Discussion Pack

AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
June 2011

Overview and strategy

ANZ is structured by Geography & Segment

Asia Pacific, Europe & America (APEA)
Retail(including
partnerships)

WealthCommercial

Institutional

Australia
Retail

WealthCommercial

Institutional

New Zealand
Retail

WealthCommercial

Institutional is a global business
3

Institutional

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

Building Super Regional
capabilities

Leading
Super
Regional
Bank• Bench strength/international talent• Innovative product capability• „Throw and catch‟ capability and culture• 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 domestic
franchises

 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

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%

48

VN
7.1%

8

5
PHI
4.6%

2

PNG
5.0%

0.4

US
2.7%

Asia-US
Trade: US$0.8trn

Pacific-Asia4
Trade: US$6bn

1

17

IND
5.9%

5

AUS
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.

6

Super Regional connectivity provides a competitive
advantage
Growth in trade flows and direct investment between Asia
and Australia is tracking at 11% and 26% pa respectively
Surplus savings

There is approximately$75b in direct foreign
investment into Australia
from the Asian region
Commodity
consumers

Migration &Investment

Commodity
producers

Natural resources account for ~$125b or ~65%
of Australian and New Zealand exports to Asia

Linked through flows of trade,
capital and population
Key focus is to bridge gaps
across the region: Asia
generates surplus liquidity,
Australia and NZ generate hardand soft commodities
42% of our Corporate* clientsdepend on Asia for more than
25% of their business

Soft commodities account for ~$25b or ~12% ofAustralian and New Zealand exports to Asia

* Represents ANZ‟s Australian based clients with annual turnover of $40-400m
Sources: Australian Bureau of Statistics (international direct investment positions, 2006-09), Trade Map (exports and7
imports, 2007-2010)

Realising the full potential of Super Regional
2017
Aspiration

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

Expanded view ofopportunity in
APEA• 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 of
Excellence• Hubs provide a lower and more flexible cost base – access

Focussedtechnology
investments• Technology roadmap focused on customer facing (e.g. internet

and 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)

8

Realising the full potential of Super Regional
2017
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
9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 to
optimise strategic positioning• Dislocation in global markets continuing
to create opportunities• Consistent M&A disciplines – on
strategy, delivers value, executable

10

Emerging differentiation• Super Regional strategy giving us greater exposure to Asia‟sgrowth• Building blocks in place via both acquisition and investment incapability• Developing stronger customer propositions• Driving productivity gains from our hubs
• Integrating the Super Regional strategy into all our businesses

11Investor Discussion Pack

AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
June 2011

2011 Interim Results

Overview of financial performance
1H11
AUDm

Growthvs 2H10Growthvs 1H10

Underlying Profit

2,818

3%

23%

Revenue

8,430

3%

11%

Expenses

3,821

3%

18%

Provisions

660

(9%)

(40%)

EPS (cents)

109.6

2%

20%

Customer deposits

268,705

4%

13%

Net loans and advances including acceptances

375,833

2%

7%

Underlying Profit

1H11
$m

Growthvs 2H10Growthvs 1H10Australia Division (AUD)

1,962

2%

15%

Asia Pacific, Europe & America Division (USD)

396

11%

44%

New Zealand Businesses (NZD)

605

19%

63%

1,028

10%

24%

Performance by Division

Institutional Division (AUD)

13

Australia Division – Business update & strategy
ANZ Australia delivered a solid outcome• Mortgages growth 1.2x system and customer
deposit growth 1.6x system for the half

Multiple of system (1H11)1• Increased commercial customers - ANZ
Commercial Banking customers2 rose by
6.4% or 25.1k customers for the half

Householdlending• Well advanced in Wealth businessintegration, launch of OnePath brand,
increased management bench strength

Householdcustomer
deposits

1.2x

System1.6x-• Targeting Asian migrant and student flows
with pan-regional migrants making up ~20%of all new-to-market customers

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Commercial deposits growth15%• Leveraging links to Asia Pacific region with
169 referrals received from Asia PacificCommercial customers in 1Q11

10%

12%

12%

10%

10%

5%

• Investing in customer facing technologies(e.g. internet & mobile platforms and multilingual ATMs) and group wide systems todeliver the business agenda.

Total
Regional
Commercial Commercial
Banking

1. Source: APRA Statistics; 2. Excluding Esanda

14

Business
Banking

Small
Business
BankingAustralia Division – Retail
Trial intention… leading to customer gains(%) transactional account trial intention1(„000s; MFI Relationship)2

30

180

25

150

20

120

15

90

10

60

5

30

0

0

Jan-10

Apr-10Peer 1

Jul-10Peer 2Oct-10Jan-11

Peer 3

ANZ

116

77
72
61

Jan-10

Apr-10Peer 1

Jul-10

Oct-10Peer 2Peer 3Jan-11ANZ• PBP up 7%• Strong trial intention and customer acquisition• Retail deposit FUM increased 7% HOH, particularly in term deposits and savings products such as
Progress Saver• Retail deposits market share increased to 12.5% over the five months to February• Mortgages FUM up 4% HOH while NIM increased 4 bps• NPAT growth was adversely impacted by flood provisions over the half

1.Source: Australian Retail Brand Monitor; 2. Source: Roy Morgan 12 month moving average

15

Good outcomes for Business Bank & Small
Business, tougher conditions in Regional Commercial
Net interest income SBB & BB$m

SBB

Business Banking

600

524

550

Net loans and advances incl.
acceptances & customer deposits
$b

580

50.0

NLA

46.2

45.7

44.5

40.0

400

Deposit

33.2

37.2

33.7

30.0

200

20.0

-

-

10.0

1H10

2H10

1H10

1H11

Investment in frontline FTE
staff in 2H10
2,836

2H10

1H11

Customer growth(„000s; Main Bank Relationship)2,3,4
20

2,806

15

Peer 1

Peer 2Peer 3

ANZ

10

2,581

8
6
4
2

5
-

1H10

2H10

1H11

Jan-10

Apr-10Jul-10

Oct-10Jan-11

1. Small Business Banking (SBB), Business Banking (BB), Regional Commercial Banking (RCB); 2. Source: DBM Business Financial Services Monitor; 3.
Based on rolling 12 months average and includes businesses that have changed MFI during the last 12 months; 4. Includes customers who did not have a
MFI 12 months ago (start up businesses)

16Australia Division – Regional Commercial Banking
Credit Quality

Significant pay down of debt occurring
after high agri cash inflows• Higher provisions partly due to long-term
stress in the sector and also specificallyfor extreme weather events such as the
Queensland floods. Delinquency trends
higher in Western Australia (prolonged
drought) while full effect of Queensland(Cyclone Yasi and flooding) is yet to
emergeProductive Loans v. Deposit FUM
Deposit FUM($b)

Productive Loans($b)

Pay down of
debt

14.0

14.0

13.0

• Majority of collective provision overlay forCommercial is related to RCB

$0.6b
13.0

12.0
11.0

Business Performance

10.0• Significant increase in deposits (up 12%
HOH, 20% PCP)

9.0

12.0

• Lending down 3% HOH, flat PCP

8.0• Revenue down 1% HOH following reduced
loan growth while expenses for the half
were flat.

7.0
11.0
Oct-086.0
Jul-09Productive Loans17

Apr-10Jan-11

Deposit FUM

Australia Division – Wealth
Insurance in-force premiums$m

Funds Under Management
Up 2%

$m

Up 12%

1,230

1,320

1,381

44,60844,49345,456

1H10

2H10

1H11

1H10

2H10

1H11

General Insurance

IndividualGroup

ANZ Trustees
Global Equities

Ppty & Inf ra'ure.
Aus. Equities

Cash and FI• Integration of former INGA business on track including OnePath new brand launch• New ANZ Wealth business created (including OnePath, Private Bank and Investment and Insurance) andmanagement bench-strength improved• Wealth NPAT down $41m primarily due to reduced net interest income (repayment of loans)• Other operating income higher due to insurance book growth and favourable claims experience
offsetting higher funding costs and brokerage margin tightening• Operating expenses flat HOH• Strong growth across the insurance segments particularly in individual life
• Funds management growth subdued in difficult market conditions coupled with business transformation• $11m gross impact in General Insurance due to natural disasters (includes ex-gratia payments to policy
holders).
18

Australia Division - Super Regional capabilities
providing differentiated sources of growth
Retail Banking across Asia
Pacific:

Commercial Banking acrossAsia Pacific:• From Asia Pacific:• More than $200b in trade flows
between Aust/NZ and Asia

 20% of new-to-bank customers• Experts in cash-flow

 Biggest Australian bank in Asia
Pacific• Specialist industry expertise• Enhanced online payments

 1,000 customer referrals permonth• Expertise in Renminbi markets

 Offshore account openings• Stakeholder relationships
across the region• To Australia:
 Specialist migrant branches Language capabilities
 Multi-lingual ATMS Multi-lingual marketing19

Case study: Leveraging regional retail connectivity
through ANZ Migrant Banking channel
By 2015 15% of the Australian population will be of Asian origin
and represent over 22% of the acquirable pool of new to bank customers• Significant acquisition opportunities exist in pre-arrival and new-arrival migrant segments• ANZ‟s pan-regional network ensures we are well placed to identify and assist clients ahead of their planned
migration• A specialist Migrant Banking channel developed to ensure and seamless referral process across regions• Offering supported by a new „Moving to Australia‟ online portal and account opening tool
• Currently have 18 specialist migrant branches and an additional 340 branches with targeted language
capabilities, initiatives underway to increase the number of specialist branches during 2011.

ExampleShanghai• ANZ Relationship Manager

identifies referral opportunity fora client relocating to Australia
for work.

ANZ Migrant Banking
Referral provided to the ANZ migrantbanking team.
ANZ Migrant Banking specialist:• Determines specific language andfinancial needs of client• Commences account opening andother necessary processes• Identifies appropriate branch to be

primary relationship point for client.

20

Chinatown branch
Haymarket, Sydney• Asian banking manager isintroduced to client pre departure.

• Meeting is arranged to occur

upon arrival to finalise banking
arrangements and address anyother needs.

Case study: Building regional connectivity
ANZ’s regional capability connects customers and creates revenue opportunities.
The following is one example out of the 169 referrals made in the first quarter:
An Indonesian customer contacts
their ANZ Indonesia Commercial
Relationship Manager to talk about
additional banking requirements they
have in Australia.

CustomerIndonesia RM

ANZ Commercial Asia Presence
ANZ Commercial presence in 14
Asian markets with access to 281
Commercial frontline staff

•
•
•
•
•

China
Hong Kong
South Korea
Japan
Singapore

•
•
•
•
•

Indonesia
Malaysia
ThailandIndia
Cambodia••••

VietnamTaiwanPhilippinesLaos

ANZ Indonesia refers connects
client with a RelationshipManager in ANZ BusinessBanking Australia.
A suite of banking facilities
including $1.2m in term debt
are established.

Australia RM

ANZ Commercial Australia
Access to 1.5k frontline staff across:• 814 branches• 202 business centres
Specialists in:• Agribusiness• Property• Asset FinanceBusiness Banking RelationshipManager also identifies traderequirements and connects
client with a Trade FinanceSpecialist who arranges afurther $5.5m in facilities.

Trade Finance Specialist

ANZ Institutional Expertise
Leverage ANZ Institutional’s Asian
Trade Finance and Markets expertise

Trade Finance House of
the Year (‟08, ‟09, ‟10)

21

Best Trade Bank inAustralia & thePacific (2009)

APEA - Business update and strategy
The APEA business continues to grow via organic build of customer relationships and corecapabilities, and inter-connectivity across the network, together with Partnerships
Performance Highlights• APEA derived revenue delivers an additional 3% of Group revenues over revenues earned in the
APEA geography• 6th in Asia-Pacific ex-Japan DCM market• Five-fold increase in Wealth AUM PCP
Focused investment and increased cost efficiency drives continued revenue and profit growth• Positive jaws despite high revenue growth and continued investment, including local incorporation in
China, India branch build, further investment in Partnerships, and rollout of platforms such as
Transactive Asia
Institutional business continuing to grow…
• Continuing to grow customer base and client penetration through increasing industry focus, build out ofregional product suite and improved of relationship management• Accelerating „catch' and „throw' model to capitalise on multi-national companies increasing businessto/from Asia
…while Retail & Wealth, Private Bank and Commercial businesses growing in target segments• RBS integration nearing completion - over 2.4m customers in Asia
• Launched Signature Priority Banking proposition in 8 countries• Commercial build out focusing on customer acquisition and increasing management bench strength• Growth in deposits a priority
22

APEA Division overview
Pro forma revenue & expenses

1H11 revenue by geography(USD m)
2,500

2,094

14%

2,000
1,500

1,214

1,023

1,000

573

500

36%

1,268

1,071
641

12%

730

Europe & America

38%
1H10
Revenue

2H10

North East Asia
Pacific0
FY10South East Asia

1H11

Expenses

Pro forma NPAT

1H11 revenue by business(USD m)
700

615

36%

600
500
400

280

300

335

Institutional

385

12%

200

RetailAsia Partnerships

100

52%

0
FY10

1H10

2H10

1H11
23

APEA Institutional
Pro forma
Growth Rates

Strong contribution by
Global Markets

APEA Institutional revenue
driven by Asia

Revenue30%

Underlying revenue (USD ‘000)
29%

HOH

37%
15%
HOH

PCP

Provisions

69%

-56%

PCP

Net Profit after Tax
28%

HOH

41%

PCP

1. APEA includes Commercial Bank

Asia

13%

800

FY09 benefited
from increased
marketvolatility

600
9%

PCP

Expenses

HOH

9%

68%

Europe400

America

200

Pacific

0
FY08 FY09 FY10

Trading
Continue momentum across the region• ~600 new clients over last 12 months1• 23% lending growth and 28% deposit growth in 1H11
• Revenue contribution to Global Institutional increased to 26%

1H102 2H10 1H11

Sales

Ongoing investment in capability• Global Markets platform and footprint• ANZ Transactive cash management platform launched, with Singapore and Hong Kongon-line later this year
• Core banking platform development• ~50 new products deployed into region
Increasing footprint, building connectivity• Continue to invest in front line staff• Expanding footprint in China, India, London and New York• Continue to develop key markets of Indonesia, Singapore, Hong Kong and Japan
Ongoing sales momentum• Industry specialisation• Focus on product cross-sell and capturing intra Asia flows• Diversifying business mix
24

APEA Retail & Wealth
Pro forma
Growth Rates
Revenue

Growth momentum in Asian
Wealth AUM1

Customer Numbers (‘000)

USD m

14%

18%

HOH

PCP

Includesaccounts from
RBS acquisition

Significant customer
build-out

5,248

5,838

Includesaccounts from
RBS acquisition

5
433

1,439

6
431

6
420

2,037

2,058

715

Expenses
1H10

17%
7%

2H10

1H11

1H10

2

R&W Asia

2H10
R&W Pacific

1H11
Private Bank

Strong revenue growth in chosen customer segments

HOH

PCP

Provisions

-64%

HOH

-66%

PCP

• 14% revenue increase HOH; positive JAWS
• Wealth AUM increased 11% HOH• Focused acquisition on target segments; closed 82,500 accounts HOH

Customer Centricity

•
•
•
•

Launched Signature Priority Banking in 6 Asian and 2 Pacific Countries
Revamped sales incentive scheme - focus on customer satisfaction
Expanded wealth management products (added 700+ products HOH)
Launched mortgages in Singapore, Taiwan & Indonesia

Connectivity

Net Profit after Tax• Focus on deposits / cross-sell of wealth management products• Leveraging of strategic partnerships, e.g. Singapore Airlines

large

Channels

HOH

2

large

PCP

• Updated website look-and-feel• Established standardised service levels for call centres• Launched mobile banking application on iPhone in Taiwan

1. Assets Under Management (AUM); 2. Retail & Wealth (R&W);

25

Asia Partnerships' contribution continues to be significant
Partnership contribution to
APEA NPAT

Growth in value in Partnerships
ANZ share as at (31 March 2011)

USD m
200

USD b
5
Others

150

3

Panin
AMMB

2

SRCB

50

1

Sacombank--50

Unlisted investment

4

BoT

100

Listed investment

0

Impacted by write-down ofinvestment in Sacombank
principally due to a decline
in the Vietnamese currency

1H11

Profit contribution remained
significant

Net cash
investment

Current bookvalue

Current book +additional market
value of listed
partners

Driving outperformance• Sacombank impairment charge taken in 1H11 withweak Vietnamese Dong and share price• Continue to add value to Partnerships throughinfusion of ANZ talent and skills to “outperform”• Key Partnerships delivering majority of profit• Invest in expansion opportunities at appropriate
times and as price, policy and regulations allow

Note:

AMMB Holdings Berhad (AMMB), Shanghai Rural Commercial Bank (SRCB), P.T. Bank Pan Indonesia (Panin), Bank of Tianjin (BoT) and Saigon
Thung Tin Commercial Joint-Stock Bank (Sacombank)26

New Zealand – simplifying structure, systems andprocesses
Simplifying our structure to be more customer focused• Management structure change will deliver greater external focus andfaster decision making while reducing costs
 Moved from six national management structures to three across Retail, BusinessBanking and Commercial & Agri
 Business Banking now a standalone specialist business Commercial and Rural Businesses merged to form Commercial & Agri, broadens
service provided to agricultural sector• Four distinct regions created & aligned across segments to bringdecision making closer to customer

Simplifying systems, products and processes• Moving to a single technology platform will drive efficiencies andimprove customer experience• A NZD98 million post tax significant item charge related to this projectis reflected in the half year accounts• Single refreshed core banking platform & single set of channel
platforms• Removing product duplication to provide a simplified, market
competitive product suite27

New Zealand Businesses – Revenue composition
NZ Businesses Pro forma Revenue
Composition (NZDm)

Mortgage portfolio composition

NZDm

100%

1,600

1,400
1,200

2.50%

80%

2.45%

60%

2.40%

40%

2.35%

2.30%

1,000

2.20%

600

2.15%
2.10%

400
200
0
1H09

2H09

1H10

2H10

1H09

2H09

% Fixed

42%

68%

58%

1H10

2H10

54%

46%
1H11

% Variable

Mortgage portfolio repricing profile% of portfolio repriced
100%

2.00%

80%

88%

97%

100%

73%

60%
40%

1H11

77%

32%

0%

2.05%

1.95%

77%

23%

20%

2.25%

800

23%

40%

20%

NII (LHS)
Other operating income (LHS)NZ Bus NIM (RHS)

0%
FY09

28

FY10

FY11

FY12

FY13

New Zealand – Retail & WealthWell managed business in a subdued economy• Strong NPAT growth driven by significant decline in provisions both HoH and PCP• Revenue has absorbed ~1% PCP impact of exception fee reductions effective 1st December 2009
• Expenses well managed down 4% HoH• Share of new mortgage business increasing in <80% LVR market• The ongoing repricing of the Fixed Mortgage book estimated 73% complete at FY10 with a further
15% to reprice during FY11
• Integration of OnePath into Wealth business progressing well - 20% share of new life risk businessfor the March quarter, market-leading KiwiSaver provided with $1.95b FUM and 24% market share
ANZ brand customer
satisfaction at historic highs1

Changes to fees and launchingmarket leading products has restored
customer growth100%

Main Bank Customers(Seasonally Adjusted)

Thousands

85%

85%

1Q09

1Q10

89%

80%

1,210
1,205
1,200
1,195
1,190
1,185
1,180
1,175
1,170

60%
40%
20%
Jun
08

Sep Dec Mar
08
08
09

Jun
09

Sep Dec Mar
09
09
10

Jun
10

0%

Sep Dec
1010

1. Nielsen CFM survey

29

1Q11

New Zealand – Commercial & Agri
Successful consolidation of the Agri division into Commercial division now
better placed to support customers growth• New Zealand Commercial business now comprises of Commercial division, Agri division and BusinessBanking• Guiding customers through the current challenging economic cycle via customer learning forums• Super Regional strategy continues to support New Zealand business‟ regional growth
aspirations, e.g. Transactive platform enables seamless Trans-Tasman banking; first Australasianbank to complete Chinese RMB deal
• Reduction in lending due to increased Fonterra payouts, and continued debt reduction in market• Maintaining good cost management disciplines
Dairy Milk Payout/Price2

Activity Outlook Index1$ per kg MS.

60
50
40
30
20
10
0
-10
-20
-30
-40

8.0
6.0
4.0

Total

Agriculture

Jan-11Mar-11

Nov-10Jul-10

Sep-10May-10Jan-10Mar-10

Nov-09Jul-09Sep-09

May-09

Jan-09Mar-09

Nov-08

Jul-08

Sep-08May-08Mar-08

2.0

0.0
Oct
02

Manufacturing

2 National Bank Business Outlook March 2011
3. ANZ National Bank

30

Oct
03

Oct
04

Oct
05

Oct
06

Oct
07

Oct
08

Oct
09

Oct
10

New Zealand – Business Banking
Establishment of a standalone specialist business bringing a new level of focus
to managing small business customers• FUM and revenue growth solid in a subdued market• Strong NPAT growth and a significant decline in provisions evident in the HoH and PCP outcomes• Investment in frontline roles to grow the business has been managed through other costsavings, leaving expenses largely flat
• Customer Satisfaction has improved across both Brands in the last 6 months1

One third of the SME market in
NZ has a banking relationshipwith ANZ1

Business Banking has seen
steady growth in customer
numbers over the half year
101,600

32%

101,400

21%

101,200

20%

101,000

15%

100,800
100,600
100,400
100,200

ANZ/NBNZ

Peer 1

Peer 2Peer 3

Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11

1. Source: TNS Conversa

31

Institutional Division
Making Clear Progress on our Strategy

Growing connectivity driven revenue• Growing our client base and diversifying our geographic
mix: Brought on 676 new Institutional, Corporate and Financial
Domestic
Institutions clients in the past half, a 10% increase HOH
CrossBooked ANZ recognised as “One of the Fastest-growing corporate
Borderbanks in Asia” in the Greenwich Associates‟ 2011 Large
78%
Cross border
Corporate Banking Survey
22%
revenues 28% of total lending now in APEA, up from 21% in 2009up 10% PCP• Investing in support infrastructure: ANZ Transactive Trans-Tasman cash management platform
launched, with Singapore and Hong Kong on-line later thisyear – 3,241 client sites activated for ANZ Transactive in
Growing and diversifying
Australia and New Zealandregional client base
 New capabilities have been introduced including new FX
Geographic Mix of new clientsliquidity and rates platforms
won past 12 months
 Core Market Risk and Credit Risk capabilities are in theprocess of being enhanced
16%
Australia• Strengthening our relationships:
 Further strengthened our position in Australia and New
Asia
20%
Zealand relationships as measured by Peter Lee Associates1• Making progress in our priority sectors of
New Zealand
resources, agriculture and infrastructure:60%
4% Lead Arranger and book-runner for Woodside‟s $1bn
Syndicated Term Loan Facility
Europe & America
 Sole arranger of AUD475m Emerald grain repurchasesyndication
1. Based on ANZ‟s Relationship Strength Index scores in the Peter Lee Associates Large Corporate and Institutional
Relationship Banking Survey – Australia and New Zealand 2009 and 2010.
32

Institutional - laying foundations for the future
Foundations Laid

Revenue Contribution by Product• Strengthened the Institutional Leadership
Team, additional team members withinternational experience• Starting to execute the technology andoperations roadmap• Improving capital discipline• Exiting non-core businesses• Delivering record pre provision profits• Substantive progress in remediation completion

1H11 Mix

Target Mix

22%
23%

Clear Goals Set• To become the bank of choice for
Resources, Agribusiness and Infrastructure in
the region• Building leading cash, trade and markets
platforms with capabilities across Australia, New
Zealand and Asia
• Building out new (material) revenue streams intransaction banking, trade, FX, DCM andcommodities, relative to our historic reliance on
rates, balance sheet trading and lending• Targeting significant growth in customer
relationships• Generating well balanced and sustainableearnings across geographies and segments
33

40%
40%

40%

38%
38%
39%

20%
20%

Global Loans
Global Markets
Transaction Banking

Priority segments• Well positioned to develop a super regional natural resources

NaturalResourcesbusiness linking Australian producers with Asian processors andconsumers• Strong Australian natural resources client base and an establishedand growing network in Australia• Clients of our natural resources group account for 4% of our Risk
Weighted Assets• The weighted average client credit rating (CCR) of our natural
resources client base is 4.3• Growing demand from Asia for soft commodities• Primary emphasis on providing Markets, Working Capital and supply
Agriculture

chain solutions• Focus on capturing an increased share of clients‟ wallet as well asbanking selected new names• Maintain dominant position in Australia and NZ and invest
selectively in Asia

• Infrastructure specialists, by adding Advisory, Equity
Infrastructure

placement, underwriting and DCM to lending and markets
capabilities• Focus on power and utilities corresponding with Asia demand in
this category• Segments include Power & Utilities, Economic Infrastructure(roads, airports etc) and Availability Infrastructure

34

Financial
Institutions&
Public Sector

Priority products – Cash management & Trade
ANZ Transactive

Payments & Cash Management

Monthly Transaction Volumes• Vision to be a lead provider of pan-regional cash

management solutions via a single transactional
interface• Launched ANZ Transactive across Australia in
January 2009 and Trans-Tasman platform
February 2011
• ANZ Transactive Asia also launched into eight
Asian countries during 1H11, and currently has~3,500 registered clients• ANZ Transactive monthly transaction volumes up
27% in the first half of 2011

2,500,000

8,000
7,000

2,000,000

6,000
5,000

1,500,000

4,000
1,000,000

3,000
2,000

500,000

1,000

0

0

Nov-09

May-10Nov-10Australia (LHS)

Trade & Supply Chain• Support trade flows in core operating geographies bybuilding on strong market position in Australia andestablish presence as a trade bank in Asia
 Awarded best trade bank in Australia by Global
Finance, Insto and Global Trade Review
magazines One of the Top 5 trade banks in the Asia Pacificregion• Completed AUD475M Syndicated Warehouse Finance
Repurchase Facility - the first ever in the global
market place
35

Asia (RHS)

Total Trade Exposures

AUDb

Funded & Unfunded

35
30
25
20
15
10
5
0
1H10
Asia

2H10
Australia

1H11
NZ

E&A

Priority products – Global Markets
Borrowers
Seeking access to low costcapital and related hedging• Corporates• Financial Institutions• Public sector

Global Markets• Research and advice• Loan syndication• Bonds• Securitisation• Hedging

Investors
Seeking diverse and quality
credit exposure• Wholesale (funds• insurers)• Public sector

Regional Rates and FX• Largest domestic markets business• Aus/NZ/Pacific Niche, opportunity to expand into Asian currencies &clients (to become Asian USD specialist)• FX revenues growing at 40% p.a since 2007
• Rates revenues growing at 75% p.a since 2006
• 5 key rates components & natural growth opportunities: hedging clientinterest rates, hedging client currency futures and swaps, sellinginvestors Gvt. and Semi Gvt. Bonds, rates and credit trading, andmanaging ANZ‟s balance sheet

Debt Capital Markets• Uniquely positioned with Super Regional strategy, with significant

Asian Capital Market revenue pools• Borrower / investor multiplier effect• We raise more debt capital in Asia for Australian and New Zealandborrowers than anyone else

Commodities• Commodity revenue split: Hedging exposures of commodity producers and consumers ~60%of revenue
 Trading customer flows ~40%
• Growth opportunities include capturing hedging opportunities indomestic agri/middle market and commodity consumers in Asia
36

Institutional - Our future focus
The best bank in the world for clients with trade and capital flows across theregion, particularly for those in the Natural Resources, Agriculture and Infrastructure sectors• Supported by an expanded FI business, with more income from Funds, and with less reliance on
the Property sector
A more balanced and more annuity-like portfolio in terms of products and geographic
coverage• A top 4 regional Trade bank
• A regionally connected online cash platform across 15 markets• A top 3 provider of AUD, NZD FX and Rates and a top 10 provider of local Asian FX and Rates forregional Corporate clients• A top 3 debt issuer in Australia, Hong Kong and Singapore with US PP capability• Strong commodities and equities businesses, generating ~$300m in revenues between them
• A lower reliance on Lending and Trading
3-5 markets beyond Australia and NZ with more than 5% market share and a broader
footprint beyond Asia to serve our priority clients• Retain our leadership position in Australia and NZ• Focus on 8 priority markets in Asia (Greater China, India, Singapore, Indonesia, Korea, Malaysia– targeting more than $100m in NPAT)• Rep offices in ~3 new markets• 40%+ of „total effort revenues‟ from cross-border

Investor Discussion Pack

AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
June 2011

TreasuryANZ well capitalised and positioned to managetransition to Basel III
Basel II

Basel III – Core Tier 1~15.5%~14.1%

13.0%
11.9%

10.7%
10.1%

12.1%
10.5%

~9.5%

~7.7%
~7.4%

8.5%

8.0%

8.5%

~8.3%

~9.5%
Core
Tier 1
surplus
over
7.0%

~8.5%

~7.0%

CapitalBuffer2.5%

Additional Basel 3
requirements ~ -150bps~11.8%

Full alignment toBasel ~ +250bps
Minimum
Target4.5%

Mar-10Core Tier 1

Sep-10Tier-1Mar-11

Total

Core Tier-1 Higher RWA
10%/15%
Deduction
Chargesthreshold(Insur,banking (market &insur,assoc,
assoc,ELvEP) credit risk,
DTA
securitisation)*

Dividend
accrual,net
capitalised
expenses+

DTA incl. in
EL v EP
deduction+*excludes impact of BIII liquidity reforms in RWA+includes increase in 10% threshold insurance & associates

39

RWA: IRRBB&
mortgage
LGDs

Mar-11Basel III
Core Tier-1
Ratio

FSA Mar-11

Minimum
Target:4.5%

Tier-1 position continues to strengthen with solidorganic capital generation
Capital Position (Tier-1 Ratio)
~14.1

1.06

(0.37)

10.10(0.11)

Portfolio growth & mix:

18bp decrease

Risk Migration:
Non credit RWA:

8bp increase
1bp decrease~11.3(0.10)(0.07)

10.51

Other(4)Investments

Mar-11

net organic up 48bp
up 41bp

Sep-10NPAT(1)Dividend/
DRP(2)

RWA
movement(3)Mar-11 BaselIII(5)

Mar-11 FSA

1. Underlying NPAT. 2. Includes prior period under-accrual of DRP . 3.Includes impact of movement in Expected Loss versus Eligible Provisionexcess. 4. Includes OnePath Insurance Business, Asian Banking Associates, Non-Core NPAT items, Capitalised Costs and Software, FX, Net
Deferred Tax Assets, Pensions, MTM gains on own name included in profit. 5. Includes 10% reduction in hybrid Tier-1 volumes.

40

Solid organic capital generation underpins strong Core
Tier-1 position
Capital Position (Core Tier-1 Ratio)

1.06

~11.8

~9.5

(0.37)(0.09)(0.09)(0.07)

8.49

Other(4)Investments

Mar-11

8.05

Portfolio Growth & mix: 15bp decrease
Risk Migration:
7bp increase
Non credit RWA:
1bp decrease

net organic up 51bp

up 44bp

Sep-10NPAT(1)Dividend/
DRP(2)

RWA
movement(3)Mar-11 Basel III

1. Underlying NPAT. 2. Includes prior period under-accrual of DRP . 3.Includes impact of movement in Expected Loss versus Eligible Provisionexcess. 4. Includes OnePath Insurance Business, Asian Banking Associates, Non-Core NPAT items, Capitalised Costs and Software, FX, Net
Deferred Tax Assets, Pensions, MTM gains on own name included in profit

41

Mar-11 FSA

Reconciliation of ANZ’s capital position to FSA
Basel 2 guidelines
APRA regulations are more conservative than current FSA regulations, in that APRA requires:• A 20% Loss Given Default floor for mortgages (FSA: 10% floor)• Interest Rate Risk in the Banking Book (IRRBB) included in Pillar I risks (FSA: Pillar II)• Capital deductions for investments in funds management subsidiaries (FSA: RWA assets)• Insurance subsidiaries to be a mixture of Tier 1 and Tier 2 deductions (FSA: transitional regulations permit Total Capital
deductions under certain circumstances)• Expected dividend payments (net of dividend reinvestments) to be deducted from Tier-1 (FSA: no deduction)• Collective Provision to be net of tax when calculating EL v EP deduction (FSA: tax effect difference between EL and EP on
gross basis)• Associates to be a mixture of Tier-1 and Tier-2 deductions (FSA: permits proportional consolidation under certain
circumstances)
Core Tier-1

Tier 1

Total CapitalMar-11 under APRA standards

8.5%

10.5%

12.1%

RWA (Mortgages, IRRBB)

1.4%

1.6%

1.8%

OnePath Funds Management and Life Co. businesses

0.9%

0.9%

0.3%

Interim dividend accrued net of DRP & BOP

0.4%

0.4%

0.4%

Expected Losses v Eligible Provision

0.2%

0.2%

0.3%

Insurance subsidiaries (excluding OnePath businesses)

0.2%

0.2%

0.0%

Investment in associates

0.2%

0.2%

0.4%

Other1

0.0%

0.1%

0.2%

Total adjustments

3.3%

3.6%

3.4%

Mar-11 FSA equivalent ratio

11.8%

14.1%

15.5%

1. Other includes Net Deferred Tax Assets, Capitalised Expenses, Deferred Income and roundings.
42

Stable term debt issuance, portfolio costs continue toincrease
Portfolio term funding costs continue toincrease as pre 2008 debt reprices

Stable term funding profile
Senior Debt

Government Guarantee

Subordinated Debt
30.0

1

Bps

Pre funded in FY10

Issuance

140.0

Maturities

120.0

25.0
100.0

20.0

80.0

15.0

60.0

10.0

40.0

1 Excludes perpetual debt

FY15+

FY14

FY13

FY12

FY 11

FY11 YTD

0.0

FY10

0.0
FY09

20.0

FY08

5.0

Sep
05

43

Sep
06

Sep
07

Sep
08

Sep
09

Sep
10

Sep
11

Sep
12

Sep
13

Sep
14

ANZ’s has a well diversified and improved funding profile
85% of FY11 term funding task complete as at May 2011
Strong Funding Composition
Short Term Wholesale
Funding
Term Debt < 1 year
Residual Maturity

Minimal offshore short-term wholesale funding;
Offshore CP accounts for <2% (~$8.6b)

Customer Funding
Shareholders equity &Hybrid debt

Gross Interbank, Other

Term Debt > 1 year
Residual Maturity

11%

2%
1%
2%
6%

22%

17%
5%

7%

15%

12%

11%

6%

6%

16%

15%

55%

58%

Domestic CDs

Well diversified term wholesale funding portfolio

14%

50%

APEA CDs

Equity/Hybrids
Offshore CP
8%

60%

4%

Offshore PPs (Multi ccy
incl. HKD,SGD,RMB)

2%Japan (¥)

4%
UK & Europe (€,£,CHF)

21%
5%

North America(USD, CAD)

7%

8%

8%

8%

Sep 08

Sep 09Sep 10Mar 116%

44

Domestic (AUD, NZD)

Solid Liquidity position however B3 liquidity requirements
remain uncertain
Strong liquidity position ($b)
6.2

Recent Basel III Developments• The implementation of the new B3 liquidity
requirements remains subject to consultationand clarification• Key Definitions including Financial Institutions
and Operational Deposits remain outstanding
and are likely to be clarified by APRA later in2011• Given the lack of eligible liquid assets inAustralia, APRA will allow banks to meet their
LCR requirements through a committed
liquidity facility at the RBA backed by repo
eligible stock• The banks will pay a fee for this facility in linewith cost of holding B3 eligible liquid assets

5.0

7.8
28.2

3.2
60.2

66.7

67.0

34.7

Sep 087.7

31.1

Sep 09Sep 10Mar 11

Mar 11

Prime Liquidity Portfolio

Class 1 – AAA & Cash

Other Eligible Securities

Class 2 – AA or better

Timing / Next steps

Class 3 – Internal RMBS

45

• Extended transition period with
implementation of the LCR expected in 2015
• Final quantum of the LCR shortfall will
depend on exact definitions adopted andproduct innovation and development during
the transition period• Expected NSFR implementation in 2018

Foreign Exchange impacts
Earnings Composition by Region& Average Translation Rates

EPS Impact
Current Hedging% Group
Underlying
Profit

100%

1.40

90%

1.30

80%

Unhedged~(3.1%)(2.5%)(1.9%)~(1.5%)

1.20

70%
60%

1.10

50%

1.00

40%

0.90

30%

1H11 HoH• Hedge profits partially mitigated the impact of
AUD strength on 1H11 earnings

0.80

20%
10%

0.70

0%

0.60
2H09

1H10

2H10

• For 2H11, hedges are in place to cover ~60% of

NZD, USD and other significant currencies - each
5% appreciation of the AUD negatively impacts
FY11 EPS by ~0.3%

1H11

APEA (LHS)

New Zealand (LHS)

Australia (LHS)

AVG AUD/USD (RHS)

FY11 PCP@Current rates• FY12 FX headwind estimated to be ~1%, with~60% of USD and other significant currency
exposures hedged at an equivalent AUD/USD
rate of 0.97, however only modest NZD hedges
in place

AVG AUD/NZD (RHS)

46

Investor Discussion Pack

AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
June 2011

Risk Management

Provision Charge and Impaired Assets
Total Provision Charge(IP charge by Division, total CP charge)

New Impaired Assets
by Division
$m

$m

1,800
1,600

1,435

4,000

1,621

3,600

3,500

1,400

3,000
1,098

1,200

2,500

1,000
722

800

3,126

3,035

2,319

2,437
Oswal

2,000
660

600

1,500
1,000

400
200

500

0

0
1H09

-200
1H09
Institutional

2H09

1H10

2H10

Australia Division

2H09

1H10

2H10

1H11

1H11
NZ Businesses

48

APEA ex-Institutional

CP charge

Individual Provision Charge
Individual Provision Charge
by Segment

Individual Provision Charge
composition

$m

$m

2,000

2,000

1,500

1,800
1,600
1,400
1,200

1,531

1,283

1,062

762

1,000

1,531

594

500
0

1,283

-500
1H09
2H09
New
Increased

1,062

1,000
762

800

$m
2,000

594
600

Individual Provision Charge
by Region
1,531

1,500
400

500

0

0
1H09
2H09
1H10
Institutional
Commercial

762

1H09
Australia

2H10
1H11
Consumer

49

1,283
1,062

1,000

200

1H10
2H10
1H11
Writebacks & Recoveries

594

2H09
1H10
2H10
1H11
New Zealand
APEA

Collective Provision Charge
Collective Provision Charge by Source
Lending Growth

Economic Cycle & Concentration

Risk Profile

Portfolio Mix$m500

Total Group

Australia
Division

66

116

400

New ZealandGlobalBusinesses Institutional
(46)

5

APEA
(ex-Inst.)
(9)

300
56

200
100

60

29

16
79

12

-1

0
-19

-100

21

-200

-34

-26

-9

-20

-15

-1

-300
-16

-400
1H09

2H09

1H10

2H10

1H11

50

Credit Risk Weighted Assets
Total Credit Risk Weighted Assets

Credit RWA movement 1H11

$b
257.8

$b
4.6
229.8

Mar 09

Sep 09

233.5

0.1

233.5

233.2

3.7

220.4

Mar 10

Sep 10233.2

Mar 11

Sep 1051

GrowthData
Review

FX
Impact1.1

Risk

Mar 11

Impaired Assets
Gross Impaired Assets
by Size of Exposure

Gross Impaired Assets by Type$m$m

Impaired Loans

NPCCD

8,000

Restructured

6,000

8,000

5,595

6,561

6,561

6,221

4,158

4,000

7,000

6,561

6,000

6,561

2,000

6,221

Oswal

5,595

0
Mar 09> $100m

5,000

4,158

Sep 09 Mar 10$10-$99m

Sep 10 Mar 11< $10mNew Impaired Assets by Segment

4,000

$m

4,000

3,000

3,000
2,000

3,600
3,035

3,126

2,319

2,437

2,000
1,000

1,000

Oswal

0

0
Mar 09

Sep 09Mar 10

Sep 10

1H09
2H09
1H10
2H10
1H11
Institutional
Commercial
RetailMar 1152

Watch & Control Lists and Risk Grade Profiles
Group Risk Grade profile byExposure at Default

Watch & Control List
Index
Mar 2009
= 100

180

Watch List by Limits
Watch List by No. Groups
Control List by Limits
Control List by No. Groups

160
140

6%

6%

6%

6%

9%

9%

9%

8%

13%

13%

13%

12%

13%

13%

14%

14%

59%

59%

58%

60%

Sep 09Mar 10

Sep 10Mar 11BBB-

BB+ to BB

120
100
80
60
40
20
0
Mar 09

Sep 09Mar 10

Sep 10Mar 11

AAA to BBB

53

BB-

>BB-

Commercial Industry Exposures
Finance & Insurance
80

14%
12%

60

10%
8%

40

6%
4%

20

Property Services
80

14%
10%
8%

40

6%
4%

20
0

Mar 10 Sep 10 Mar 11

Agri, Forestry & Fishing
14%
12%
60

10%
8%

40

6%
4%

20

2%
0

12%

60

10%
8%

40

6%
4%

20

0%
Mar 10 Sep 10 Mar 11

Wholesale Trade

Other Commercial Exposures

14%

120

24%

12%

100

20%

80

16%

60

12%

4%

40

8%

2%

20

4%

0%

0

0%

10%
8%

40

6%

20

Exposure at Default ($b) (LHS)0

Mar 10 Sep 10 Mar 11

60

Mar 10 Sep 10 Mar 11

2%

0%

80

0%

% in Non-Performing (RHS)

14%

2%

0%

80

80

12%

60

2%
0

Manufacturing0
Mar 10 Sep 10 Mar 11% of Group Portfolio (RHS)
54

Mar 10 Sep 10 Mar 11

Australia 90+ Day Delinquencies
Australia Retail

Mortgage Delinquencies

90+ day delinquencies

1.50%• South East Queensland – higher than national
average unemployment, impacted by stronger
AUD (tourism), natural disasters

Total Mortgage Portfolio
NSW & ACT Mortgages
QLD Mortgages
VIC Mortgages
WA Mortgages
Total Credit Cards• 2008 vintage greater propensity for stress• Credit underwriting tightened considerably atthe end of 2008 and ANZ took a more cautious
approach to volume in 2009

1.00%

Mortgage loss rates
Individual Provision Loss Rates
1H09

0.50%

0.00%
Sep 07

Sep 08

Sep 09Sep 10
55

2H09

1H10

2H10

1H11

Group

0.85% 0.74% 0.61% 0.42% 0.31%

Australia Region

1.03% 0.72% 0.59% 0.42% 0.31%

Australia Mortgages

0.03% 0.02% 0.02% 0.01% 0.01%

Australia Mortgages
Dynamic Loan to Valuation Ratio

Portfolio Statistics
Total Number of Mortgage Accounts
Total Mortgage FUM

831k
$165b

% Portfolio

60%

March 200919% >80% LVR

50%
40%

% of Total Australian Lending

59%% of Total Group Lending

44%

Owner occupied loans - % of portfolio
Average Loan Size at Origination

64%
$227k

Average LVR at Origination

63%

Average Dynamic LVR of Portfolio

47%% of Portfolio Ahead on Repayments

38%

First Home Owners – % of Portfolio

11%First Home Owners – % of New lending 1H11

7%

56

March 201111% >80% LVR

30%
20%

11%

10%

9%

8%
2%

0%
0-60%

61-75%

Mar 2009

76-80%

81%-90%Mar 2010

Mar 2011

Mortgage Portfolio by State(Mar 2011)
NSW & ACT

27%
20%

16%

QLD

10%

VIC

27%

WA
OTHER

91%+

Australia Commercial
Regional Commercial Banking
90+ day delinquencies

Australia Commercial
90+ day delinquencies
3.00%

2.50%

Business Banking

3.00%

Regional Commercial Banking

2.50%

Esanda2.00%

Small Business Banking

1.50%

RCB Total

Agri

Other Commercial

1.00%

2.00%

0.50%
0.00%

1.50%

Jan-10May-10

Sep-10Jan-11

Australia Commercial Lending Mix

1.00%

Business Banking

31%

0.50%

29%
33%

0.00%
Sep-07

Sep-08

Sep-09Sep-1057

7%

Regional Commercial Banking
EsandaSmall Business Banking

The Queensland economy faced challenges before theonset of natural disasters

Australia
Queensland

Level of unemployment

8.0

2,000
1,000

Net Tourism (lhs)

0.40

AUD/USD (rhs)

0.50
0.60
0.70

-

0.80
0.90

-1,0007.0

1.00-2,0006.0

1.10

2000 2002 2004 2006 2008 2010

Mining is a key driver of economy but
less significant than in WA

5.0

Mining as % of Total Industry

4.0

30%
14%

3.0
2001

AUD/USD Inverted

9.0

Tourism flows have been declining
impacted by a strong AUD
Net Tourism Annual Rolling Sum(„000)

Unemployment did not experience thelevel of decline experienced in thenational average
%

2003

2005

2007

2009

QLD

2011

58

WA

New Zealand
Total Impaired Assets

Total Provision Charge
NZDm

NZDm

800

2.31%
2.13%

330

291

400

2,236

1.89%

598

600

131

85

1H10
2H10
CP Charge

1H11

200

2,079

0
-200

1,837

1H09

1.24%

2H09
IP Charge

90+ Days Arrears

1,220

1.20%

0.64%
639

0.80%

Mortgages
Commercial
Rural

0.40%
Mar 09

Sep 09Mar 10

Impaired Assets

Sep 10Mar 100.00%

IA as % GLA

2007

59

2008

2009

2010

2011

Investor Discussion Pack

AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
June 2011

Economic Update

Record terms of trade will drive investment andeconomic growth
Annual private business capital expenditure (capex), actual and expected
120
MiningManufacturing

Other industries

100

Early estimates indicate
a $100bn mining capex
spike in 2011-12$bn p.a., nominal

80

60

40

20

0
05-06

06-07

07-08

08-09

Estimates based on 5 year average realisation ratios

Sources: ABS and ANZ

61

09-10

10-11 (est.
5)

11-12 (est.
1)

A strong outlook for natural resources investment
Advanced minerals and energy projects, April 2011

Source - Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)
62

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
relate to ANZ and its management, are intended to identify forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the datehereof. Such statements constitute “forward-looking statements” for the purposes of the United States
Private Securities Litigation Reform Act of 1995. ANZ does not undertake any obligation to publicly release
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 fax: (613) 8654 9977

e-mail: jill.craig@anz.com