UBS Financial Services Conference
2013
Philip Chronican
Chief Executive Officer, Australia
AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
June 2013

Banking on Australia - transforming the business,positioning ANZ for growth in a changing environment
1. Digital First
Delivering leading Online and Mobile solutions that will define the way we operate
across Retail and Commercial, while enhancing customer experience and loyalty anddriving down cost
2. Deep customer
insight

3. Optimised
Channels

4. Highly skilledBankers

5. Simplification

Investing incustomer datamanagement andanalytics tosupport deepercustomerunderstanding anddeliver targeted
offersTransforming andrejuvenating ourdistribution
channels in linewith customer
preferences toimprove customer
experience andlower the cost toserve

Building thecapability of ourpeople to meetchanging customer
needs throughbetter training,support, insights
and customer
analytics

Simplifying ourproducts andprocesses to free up
productive time andmake banking easierfor staff andcustomers

2

A clear path to reshaping our domestic banking business•Group goal to build the best connected, mostrespected bank across the Asia Pacific region•A strong domestic franchise is critical to theGroup‟s success•••

The Banking on Australia (BoA) program willtransform and reshape our Australian business$1.5 billion committed over the five years to2017. Goals:
Acquire more quality customers than any
other major domestic bank

Achieve highest customer satisfaction ofthe major banks

Be the #1 Corporate and Commercial Bankin Australia

Build our lead in digital and mobile bankingContinue to build a highly engaged
workforce

We are seeing early success - named #1
Business Bank3 and the most valuable banking
brand in Australia4

Household lending & deposit growth1Household Deposits

Household Lending
Indexed Sep 2009 = 100
150

Indexed Sep 2009 = 100
150
ANZ=144130

ANZ=134 140
130120120110110
Aus Major Peer
100
Banks=12690

140

10090
Sep
09

Sep
10Sep
11

Sep Apr
1213

Aus MajorPeer
Banks=131
Sep
09

Sep
10

Sep Apr12 13Sep
11Corporate & Commercial Banking
Net loans and advances & Deposits
Net loans and advances
$b7%
CAGR2
636158
5655

Mar
11Sep
11Mar12Sep
12Mar13Deposits2$b8%
CAGR23740414344Mar11Sep
11Mar12Sep12Mar
13

1. Source: APRA Banking statistics
2. Excludes Corporate Banking deposits which are included in the IIB division deposits (Corporate Deposits as at Mar 13 half: $5.8b Sep 12 half: $6.2b; Mar 12 half:$5.8b; Sep 11 half: $6.3b; Mar 11 half: $6.3b)3
3. Money Magazine, 2013
4. Brand Finance, 2013

Digital - central to banking in the future; we are themarket leader in mobile banking platforms
Building our online and digital banking capabilities• Digital channels will define the way we operate• Focusing on customer acquisition and servicing and deepening thecustomer relationship• Recognised leader in mobile banking platforms
 ANZ goMoney – over 1m users and 1m logons in a day ANZ Fast Pay – winner „Innovative in Mobile Payments award‟1 &Trailblazer Award for „Channel Excellence in Mobile Payments‟2

 ANZ Transactive for mobile – 2,000 users processed $9b in payments3
Developing deeper analytic capabilities; enhancing our understandingof customers and ability to tailor offerings
Data Examples
Name, Birthdate,
Address, income,channel preferences
for sales and contactCustomerProfitability
attrition risk
Transactions,interactions,appointments• Unified view of customers relationship with ANZ providing
actionable customer insights• Analytic capabilities enable tailored personalised offers
across Retail and Commercial customers• First phase of warehousing platforms alreadycommissioned

ANZ-related tweets,
posts
1. Financial Insights Innovation Awards (FIIA) 2013
2. 2013 Banking & Payments Asia Trailblazer Awards
3. As at May 2013

4

Our distribution channels are being transformed and ourpeople enabled to enhance the customer experience
Transforming and rejuvenating our distribution channels to deliver
improved customer experience• Improving channel capability - digital will deliver a seamlesscustomer experience, supporting growth in high value segments

 11,000 ANZ Live Chat‟s completed generating 2,400 referrals 2• Branches becoming advice centres for complex customer needs.
Everyday transactions move to self serve 46 new look sales focused branches delivered 43 video conferencing facilities deployed for specialist advice
 150 iATMs to be deployed by September 2013 (800 in total)• 300 Commercial bankers have iPad-based tools - better mobility andcustomer experience (1,200 more Bankers to be enabled in 2013).
Centralised customer support team increases frontline sales capacity

Building the capability of our people to meet the needs of customers• Investing in staff training across the entire suite of solutions1
 150,000 hours in sales training in the last 12 months
 >3,000 staff trained and accredited to sell mortgages
 1,300 staff in 300 branches accredited to sell wealth products
 1,000 staff trained to sell SME products
 600 Commercial bankers completing Whole of Wallet sales
training with 850 completing credit pathways training

1. All figures reported are as at March 2013 unless otherwise stated
2. As at May 20135Simplifying products, processes and improvingproductivity• Simplified product offering to better meet

Cost to Income ratio

customer needs

 23 products decommissioned2%

 Deposit offering being simplified to 1

41.8
39.9

transaction and 3 savings products

37.9

 Now 3 simple categories for credit cardoffering – low rate, low fee and rewards• Simplified customer onboarding process withANZ OneSwitch

1H12

 271 business customers have switched toANZ in 1H13, taking total to over 1,000
since 2011

1H13

Revenue per FTE up, cost per FTE declining• Re-engineered mortgage fulfilment model$‟000

 40% improvement in time to letter of offer

600580560
540520500480460• 9% reduction in customer complaints• Expenses down 3% and CTI down 200 bps• Australia Operations expenses down 13% in

the 12 months to March 2013 while absorbing
a 5% increase in volume and maintaining
service levels

1. All figures reported are as at March 2013 unless otherwise stated
2. As at May 2013

2H12

Revenue / FTE (LHS)Operating Expenses / FTE (RHS)

1H126

2H12

1H13

$‟000300280260240220200180160

Banking on Australia will create benefits for thecustomer
Retail Customer

Commercial Customer“ANZ has made it easier forme to bank the way I want.
I feel in control”“ANZ has made it easier todo my banking and run mybusiness”“I have…

“I have…

… access to all my financial information in one
place and with the help of ANZ‟s tools I canmanage my money myself online or on myphone”… the digital tools and apps to see and manage
my payments and cash flow in real time
which lets me spend more time doing business”… been connected to the specialists andinformation I need across ANZ, including
bankers based across Asia who provided mewith banking solutions and general information
which helped me do business in Asia for thefirst time”… the choice to interact with ANZ when andwhere I want, online, video, over the phoneor in person”… been asked about my preferences and needs sowhen I get an email from ANZ, theinformation and recommendations arereally useful and the products are reallygood”… been contacted proactively by my banker
because they knew how to help me manage mybusiness and funds better, and I didn’t needto ask”… been able to pick up the phone and the ANZ
staff member who answered already knew
who I was and what products I had”

… received a tailored service from ANZ because
they understood the business I do with themand made me feel like a valued customer”
7Case study – Building our highly skilled bankers

Complexity

A strong sales curriculum with a cohesive set of programs
to build sales capability & provide staff with a clear
learning planIntermediateSales

WealthAccreditation
Program

SmallBusiness

Mortgage
Lending
ProgramLending
Fundamentals

Continuous coaching toembed key sales capability+Sales
Induction

1 month

1 year

2 years

Time in role

Driving results
Mortgages

WealthOver 50% of Mortgage FUM growth now coming
through Proprietary Channels

Branches delivering strong growth in Simple
Superannuation sales

Proprietary Network sales ($M)

Weekly # accounts opened

1,000

7%

800
600
400200

1H11

2H11

1H12

2H120
Oct 12 Nov 12 Dec 12 Feb 13 Mar 13

1H138Apr 13

Case study – Branch of the futureBranches are changing…

Intelligent
Deposit ATMs

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 be considered,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-lookingstatements, which speak only as of the date hereof. Such statements constitute “forward-looking statements”
for the purposes of the United States Private Securities Litigation Reform Act of 1995. ANZ does notundertake any obligation to publicly release the result of any revisions to these forward-looking statements toreflect events or circumstances after the date 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