ANZ Asia Investor Tour 2012
Commercial Banking Asia Pacific

AUSTRALIA AND NEW ZEALAND BANKINGGROUP LIMITED
8 June 2012

Ivy Au Yeung
Managing Director
Commercial Banking Asia PacificOur goal is to be a core bank to our target clients byproviding seamless connectivity
Where we play
Corporate &Institutional
Asia PacificCommercial
Asia Pacific

How we will succeed
The right risk and service framework

Turnover >USD100m to>USD150m dependent
on market*

Emerging
Corporate&
Business Banking• Operate a low cost to serve model

Our Current
Focus

Target cross border clients

Turnover>USD15m

Small Business &Liability only SME• Clients with cross border requirements

Developing
model

Operating across 8 Asian and 12
Pacific markets• Further develop competitive advantage
through regional connectivity capabilities• Greater China (Mainland China, HK, Taiwan)• Singapore• Indonesia• Greater Mekong (Vietnam, Cambodia, Laos)• The Pacific• Leverage Institutional and Retailcapabilities

Next Phase of Development* China up to USD500m• Clients with supply chain linkages tomultinationals
Leverage existing network and expertise

Existing Markets• India• Implement a risk framework appropriate
to Commercial Banking

1Global and Regional Banks have successfully built
commercial businesses across Asia
Our competitors have built
commercial businesses over time

ANZ Commercial Asia in earlystages of development• Key competitors generating combined
Commercial Asia revenue of >USD8.72b pa1• Focusing on clientacquisition, developing relationshipmanager capabilities and building target
service model• Achieving returns on equity >20%1• Cost to income ratios of 30-40%1
Our Key Competitors
Global Banks• Our aim by 2017 is to achieve a corebank relationship with at least 40% of
ANZ Corporate and Business Banking
clients

Regional Banks• Growth in Commercial: revenue up 59%
PCP, 35% HOH; more clients withnumber of products per customer up
from 1.69 to 2.03

Bank East Asia

1. Based on bank reported disclosures and ANZ analysis.

2Regional/global banks have a different focus to local
banks in the large and growing commercial market
Asia commercial banking revenue pool isestimated at USD147b in 2011 withprojected growth of 8% p.a. by 2013

ANZ and other regional/global banks focus
on deposits, markets and trade, whereas
local banks focus on lending

Asia Commercial Banking Revenue Pool

Revenue Mix

Risk-adjusted Revenue1 (USDb)
+8%
CAGR
+5%

133

137

147

158

170

(ICBC, BOC, SBI,ICICI, OCBC,
Chinatrust)Global Banks& Emerging
Regional Banks(HSBC, Citi, SCB,
DBS, ANZ)

2009

2010

2011

2012F
2013F
Projected

11%

Local State Owned
and Private Banks

56%

Lending

Cash
27%

Trade
32%

34%

Markets

30%
3%
7%
Commercial
ANZ
Asia Revenue Commercial
Pool
Asia Pacific

1. Source: McKinsey Revenue Pool database, ANZ analysis. Risk adjusted revenue is total revenue less expected provisioning for
credit risk. Asia represents China, Japan, Korea, Hong Kong, India, Indonesia, Singapore, Malaysia, Taiwan and The Philippines
3

89% of
RevenueCommercial Asia leverages existing Institutional andRetail platforms and products to serve target clients
Commercial Asia Pacific strengthens regional proposition

Institutional
Adds scale to existing infrastructure
Foster and refer new
Institutional Clients

Leverage product expertisein markets, trade and cash
management• Leverage existing infrastructure withminimal additional investment in productand support infrastructure required

A more efficient service proposition• A lower cost model for developing future
Institutional clients

Commercial
Lower cost
processes

BranchNetwork

RetailStrengthens funding baseRefer
owners /executives• Commercial deposits further diversify
funding basePrivate Bank

4

Commercial Banking provides an opportunity to establish
a relationship across a client’s business lifecycle
Typical stages of development for Commercial clients

Commercial

Institutional

Corporate &Business Banking

Small Business &Liability Only SME• Generate continuous
pipeline to Institutional
Banking - Identify futurechampions and high growthcompanies at an early stage

100
PrivateLimitedCompanies% of clients80

Publicly
Listedcompanies

Large Local
or Global
Corporate

60
Small Business“Moms & Pops”

Partnership &Family owned

40• Supporting Small Businessand Liability only SME a key
pillar of the community
which account for 60-70%
of employment

Small Business“Moms & Pops”

20

0
0-5

5-25

• Our clients and people willgrow together and build
business opportunities &talents

25-75
75-150
Sales Turnover (USDm)

>150

5

Our value proposition is based on international
connectivity, deep relationships and sector insights
Three key elements of our value proposition

International
Connectivity

Deep Relationships& TrustInsight• Leveraging our super regional connectivity to drive

cross-border business success – both within Asia andbetween Asia and Australia / New Zealand andPacific• Developing deep client relationships through athorough understanding of their business• Utilising deep knowledge of the country, expertiseand insights in target industry segments

6

We will control risk and achieve low cost-to-servethrough a phased approach to building the business
Phase I2011-2012
Country focus

Segment focus

Phase III
2014-2017• Hong Kong, Singapore,
Taiwan• China, Indonesia• Focus on Corporate &Business Banking• Continued focus on
Corporate & Businessbanking• Continued focus on
Corporate & BusinessBanking• Pilot SME in HK and SG• Rollout SME Banking toselected countries• Upgrade bench strengthof risk team / productpartner• Rigorously enforce theEAR framework• SME – Developing Model• Upgrade capabilities in
Commercial teamManage risk
effectively
across theportfolio

Phase II
2012-2013• Develop Early Alert (EAR)
framework• Approved BWS and CLG• India, Greater Mekong• Developing Pacific model• Embed EAR forward
looking frameworkacross all countries• Hub appropriate risk
monitoring activities andreports• Embed and enhance
operating risk framework

Embed a low
cost to serve
model• Leverage existingproducts and platforms• Agree and adopt a lighttouch product/RM model• Improve operational
processes in Trade,
Markets and Cash
• Standardise documents
and processes7• Leverage investment inother segments as wellas hubbing to further
reduce cost to serve

ANZ Asia Investor Tour 2012
Commercial Banking Asia Pacific

AUSTRALIA AND NEW ZEALAND BANKINGGROUP LIMITED
8 June 2012

AppendixCommercial Banking Asia Pacific 1H12
Commercial segment revenues up 59%
PCP as customer franchise strengthens

Commercial Client revenue growing1
Market SalesCountry build out

Other Client Revenue

USDm• Focused build-out in Hong
Kong, Singapore, Taiwan and Indonesia

65+43% CAGR

48

41• Hired experienced Commercial RelationshipManagers and right support staff to increase
bench strength

32

34

5

5

• Re-organised regional and country teams toalign to target segments

27

29

31

37

1H10

2H10

1H11

2H11

Growing client base and deepening
relationships

20

11

10

45

1H12

Client numbers continue to grow• Commercial clients grew 35% PCP

Commercial Asia Client Numbers2

Increase cross-sell, particularly of trade andmarkets products• Number of products per customer increased
from 1.69 to 2.03 in 1H12 across the portfolio

9,287

9,485

Sep 10Mar 11

12,29012,851

Sep 11

Mar 12• Trade cross-sell to markets clients increased
14% in 1H12

1. Pro Forma basis adjusted for RBS acquisition
2. Includes retail transfer in Vietnam Aug 11

9

ANZ Asia Investor Tour 2012
ANZ Pacific

AUSTRALIA AND NEW ZEALAND BANKINGGROUP LIMITED
8 June 2012

Michael Rowland
Chief Executive Officer
ANZ PacificPacific financial performance has shown solid growth

Revenue
USDm

Net Profit after Tax
USDm

Deposits
USDb

409

321

296

347

FY08

FY09

FY10

FY11

119

107

135

160

FY08

FY09

FY10

FY11

2.9

3.0

3.1

Sep 08

Sep 09Sep 10

1

184

225

239

1H11

2H11

1H12

68

92

102

1H11

2H11

1H12

4.0

4.2

Sep 11

Mar 12

ANZ is the major commercial bank in the PacificA presence in 12 markets
across the Pacific for over 130 years

Holds the largest share of banking
wallet in the PacificShare of Revenue1
ANZ
Westpac
BSP

OthersShare of Net Profit After Tax1
ANZ

• 2,200 staff in 12 countries & 55 branches

Westpac• 17,500 commercial/corporate customers

BSP• 420,000 retail customers

Others

1. ANZ estimates of underlying earnings based on published financial information as at 31 March 20122

With significant success in winning client transactions
across flow and value-added businesses
Substantial Flow Transactions

Value Added Transactions

LC1
Power Plant Project

LC2
Power Plant Project

Structured Trade
Facility
Oil Imports

Revolving Investment
Credit Line

Export Trade Finance
Facility

2011

2012

2012

2012

2011

Transactional Banking
Requirements

Term Debt
Financing

Sovereign Bond

3y Term Loan

Trade Finance
Facility

Export Finance

2012

2012

2011

2011

2011

2012

Structured Trade
Facility

Syndicated Loan

Mandated Lead
Arranger

2012

2011

2011

Fiji Sugar Corp

3

Working Capital Facility
Indemnity Guarantee
Facility2012

We have positioned our Pacific business around Super
Regional strategy
2008

2011/2012

Where we have come from•Standalone domestic/local bank•Grown through acquisition

Current Focus• Super Regional connectivity driven across countries
and segments• Main bank for Global Diversified Corporations, NRG,
FI and Infrastructure• Organic growth• Retail Transformation and productivity push• High cost to serve in Retail and Commercial• Relationship strength in Corporate driving customer
acquisition• Electronic service channels• Limited investment• Electronic sales and service for all segments• Technology infrastructure build for sustainable
platform• Little connection across ANZ network• Positioning Super Regional connectivity for C&IB
and Commercial as a differentiator• Signature Priority/Priority Banking rollout• Unable to attract or grow talent into management• Champion local management talent• Increase Pacific Nationals in leadership roles4Regional connectivity is playing to our unique positionin the PacificPacific trade flow by origin/destination
Intra-Pacific

Asia
Rest
of theWorld

Pacific-Asia
Trade: US$4.4b
Australia
New Zealand
PNG US$4b

TL

SI US$300m

Trade flows between Asia and the Pacific havegrown 25% p.a. for each of the past 5 years

US$342m
Fiji US$2b
VanuatuUS$368m

Denotes two way merchandise
trade flow (2010)

Aus-NZ-PacificTrade: US$3.8b

Denotes inward FI flow (2010)

Source: ANZ Economics; UNCTAD; UNCOMTRADE

5

Institutional accounts for almost two-thirds of Pacific’s
revenues% of revenues by region andsegment

ANZ Institutional (excl. Commercial) accounts for~60% of Pacific revenues

PNG and Fiji represents more than twothirds of Pacific revenues

ANZ Pacific total revenue split by segment (FY11)
Total 2011 ANZ Pacific Revenues: US$409m

American Territories

South East Region

Central Region

North West Region

Retail & WealthInstitutional

Commercial
Markets

RetailInstitutional Corporate & Commercial

Markets6

We have a focused strategy to respond to a number ofopportunities and challenges
Critical opportunities / challenges

1
Resourceboom

2
Networkflows withPNG

3Modernise
Commercial
sales andservicemodel

Strategic responses• Prioritise North West region (PNG,
Solomon Islands and Timor Leste)

1• Resource dependent economies in
the region are experiencing aboom

Prioritise
PNG• Opportunities in PNG are
significant

2• Opportunities to deepen underpenetrated fund flows (FIG, Global
Diversified Corporations,
Infrastructure), leveraging ANZ’s
Institutional strength• Target fund flows by engaging
Crossclient segment specialists (FIG,
segment &GRM) and global industry
cross-borderspecialists (Natural Resources,
connectivity
Infrastructure)3• Strong growth opportunities in
Commercial segment• Non funded revenue growth
opportunity

4

Establish a
Commercial
segment• Develop a compelling Commercial
banking model drawing on
Pacific’s strong Commercial
banking foundations

Retailtransformation• Segment customer proposition
and migrate mass customers to
self-service and direct channels• Realign branch design to focus onsales• Optimise branch footprint

4
Optimise
Retailproposition• Defend ANZ’s leading market
position through a strong PNG
business• Retail has well established brand,customer and revenue base buthigh cost to serve

7

PNG presents the single largest opportunity
Total Trade (Imports and Exports)1
N. Caledonia

PNG

Fiji
Am Samoa

Size & Growth Prospects: PNG is thelargest opportunity• Growth focussed on resource-richeconomies, with PNG representing the29%largest share
38%• PNG nominal GDP 2011: US$13.7b and2012E: US$16b

OthersAffluent population in the Pacific(2010)2Fiji

PNG

Connectivity: PNG is the key to the
Pacific’s main trade and FDI corridors

Guam• ANZ’s Super Regional footprintcomplements Asia’s and Australia’s
position as the Pacific’s main trade
partners

Timor-Leste• Capturing the trade and FDI corridors
between PNG and Asia/Australia is key

Others1.
2.

Source: Global Insight, Bloomberg, WTO, UNCTAD, CIA Factbook, IMF, ABS and Statistics NZ, ANZ Pacific Quarterly May 2012
Sources: Asia Retail income segmentation, Asia and Pacific Customer Insights reports and McKinsey Global Banking Pool and
ANZ analysis
8

We are deepening Institutional relationships forcomplete coverage of Pacific’s resource-rich economies
Institutional coverage“Pillar”
segments

Subsegments

3
4
5

Large Corporates(Local corporates &onshore Diversifieds)• All corporates, apartfrom high-risk
industries, in local
markets• Local corporates• Onshore Diversified
Corporations• State owned
enterprises

2
5
6
7

1

to

3

Construction phase

4

to

7

Production phase
ANZ strength
Area of focus

Financial
Institutions Group(FIG)

1 Global Diversified
Corporations
4

High-value existing ANZ
FIG customers, including• Government
agencies, provident
funds andinfrastructure
accounts• Global banks of GDCs

GDCs with investments in
the Pacific, especially• GDCs in Natural
Resources,
Infrastructure, Agriand Tourism• GDCs headquarteredin APEA or Aust/NZ

Use Pacific’s
onshorestrength as aspringboard to
ANZ’s networkby leveraging

How wewill win• Large and diverse
customer base
• Deep knowledge of themarket• Dedicated industry
capability in Natural
Resources, Agri &Infrastructure• Deep customer
relationships• Global capability andconnectivity• Local specialisation• Product training tailored
to FIG customers• Offer world-classproducts in key flow
areas - cash
management, trade andFX

9• Global capability andconnectivity

relationships
to follow the“chain” backto offshoreparentStrong opportunities for growth in Commercial
We are modernising our Commercial Banking sales and service model,
leveraging work already underway in Asia

Build from a solid
franchise• Leverage Super Regional connectivity to drive cross-border business• High-touch, responsive Relationship Managers provide customised solutions• Extensive branch and ATM network to serve transaction banking needs• Primary bank for both business and personal needs providing seamlessservices• Strong client relationships through deep country, industry and market
Client acquisition& enhanced
cross- sell

A focus on target
products

knowledge• RMs drive sales/prospecting and cross-sell to existing deposit client base
• Leverage Supply Chain• Downstream opportunities from C&IB
• Comprehensive product suite with customised solutions- Specialised Lending- Term lending and Working Capital- Transaction banking and Cash Management- FX and Trade10We are optimising and modernising Retail
Today

ClientSegmentation

How we get
there

One CVP across all
segments
A. Customer
Segmentation

Channels

High use of branchchannels

Sales andServices

Service-focused culture

Economics

High cost to serve
Low sales growth+Differentiation:
Signature Priority(Affluent);
Priority (Emerging); andANZ Blue (Mass)
Branch = sales
Electronic = service

B. Migrate masscustomers toelectronic channels

Sales-focused culture
with modern techniquesand MIS+

Higher revenue growth
Lower variable costs

C. Sales productivity
upliftCustomerExperienceEnd stateLong wait-times acrossall segments

11

Tiered service level
Transact everywhereWe have clear roadmap to deliver growth
2012

2017

Current Focus

Future State• Super Regional strategy driven across countries andsegments• Main bank for Global Diversified Corporations, NRG,
FI and Infrastructure• Organic growth• Integrated franchise across geographies, segments
and products• Delivering unique connectivity for customers across
ANZ network• Retail Transformation and productivity push
• Relationship strength in Corporate driving customer
acquisition• Electronic service channels• Retail service through electronic channels;
acquisition focus on affluent• Commercial the driver of non funded revenue
growth electronically through trade, cash and Fx(Transactive and Wall Street in Pacific)• Electronic sales and service for all segments• Technology infrastructure build for sustainable
platform• Retail growth through electronic channels andacquisition of affluent• Best in class Corporate/Commercial products andplatforms• Positioning Super Regional connectivity for C&IB
and Commercial as a differentiator• Main bank for Global Diversified Corporations, NRG,
Infrastructure and FIG• Signature Priority/Priority Banking rollout• Dominating local Corporates and Commercial• Affluent bank of choice• Champion local management talent• Increase Pacific Nationals in leadership roles• Local leadership the norm12

To sum up – we are modernising and reshaping the
Pacific business for growth
Number one market share in Institutional, Commercial and affluent
segments
Deliver Super Regional capability
Focus on highest growth geography – North WestManage customers regionally with industry focus and product specialisation
Be banker of choice to Global Diversified Corporations, NRG, Infrastructure, Agriand FIG (particularly Governments and Central Banks)
Modernise Retail and Commercial businesses - service to electronic channels anddrive sales productivity
Strong in-country management

13

ANZ Asia Investor Tour 2012
ANZ Indonesia

AUSTRALIA AND NEW ZEALAND BANKINGGROUP LIMITED
8 June 2012

Joseph Abraham
President Director

ANZ Indonesia Financial Performance
Revenue (USDm)

294

CAGR
+43%

202
82

2007

2008

CAGR
+57%

166

135
70

Loans (USDb)

0.3
2009

2010

2011

1H12

2007

NPAT (USDm)
CAGR
+24%

31

0.5

2008

2009

2010

CAGR
+57%

2011

1H12

2.4

2.3

2011

1H12

1.6
1.1

14

2008

1.8

0.8

35

0.4

5
2007

1.5

Deposits (USDb)

24
15

2.2

2009

2010

2011

1H12

2007

1

0.6

2008

2009

2010

ANZ has built a strong base of branches, customers andoperations to support continued growth
2008

2009

Develop strategy and buildout retail and Institutional
businesses

2010

2011

Continue organic
growth with bolt-ons
and product capability

2012

Extend and deepen
franchise Limited commercial and Strong and growing brand Full commercial and Institutional

 Predominantly a monoline credit

 Full commercial capability
 Enhance retail and wealth Leading natural resources andinstitutional banking productcard business with no significant
retail banking proposition

 2,700 retail customers, 450k
cards

presence

product set

 28 branches in 11 cities No brand visibility
 Limited system capabilities
 2 branches in 2 cities
 2 standalone ATM with nobanking proposition

diversified industrial bank

 Leading retail bank with affluent
positioning

 27,000 retail customers, 830k cards
 Rolled out world class data centre
and call centre technology

 53 ATMs connected to both national
networks, Prima and ATM Bersamaof 40,000 ATMs

connection to national networks

 ANZ BGL increase ownership in ANZ
Indonesia from 85% to 99%. PT
ANZ Panin Bank name changed to
PT Bank ANZ Indonesia

ANZ Head Office in 2008

ANZ Head Office in 20122

ANZ brand engagement is amongst the highest amonginternational banks
Overall brand engagement score comparison1
2010
78

2011
88

93

90

99 101

97

107 109

Spontaneous awareness of ANZ by country
38%
32%

2010
2011

20%
16%

12%
5% 4%

(2)

Singapore

Hong Kong

Taiwanclosing the gap with HSBC and Citibank

ANZ Indonesia brand engagement 2010-111

Jakarta Airport

106 1092010

Advocacy

Participation

Conviction

Commitment

Connection

Integrity

Understanding

Knowledge

2011

SensingIndonesia

Vietnam• In 2010, we were surveyed as „ANZ Panin‟• In 2011, „Panin‟ was not included in the questionnaire• Brand engagement is better than SCB and ANZ is98
93 99 89 97 88 98 87 96 87 93
91
91 92
88
83

7%
1% 1%

ANZ has improved notably with significant changes in„Understanding‟, „Connection‟ (relevant) and „Commitment‟(purchase intention). These are key to drive sales results.
Notes:
3
1) DBS was not included in the 2010 survey2) Engagement scores are relative rather than absolute. The survey comprised 200 respondents of affluent segment.

We are winning greater substantial flow and value
added deals
Value-added

USD 75M

USD 50M

USD 75M with ANZ having
approvals for an increaseof total leasing facility
limits of USD 37.5M

USD 50M – 5yrs financelease facility
Leighton Holdings (PTThiess Contractors
Indonesia)

PT Petrosea Tbk.

Substantial Flow

USD 21.5M Term
Loan & 1.25M IRS
Term Loan – USD 21.5M
senior tranche (“TrancheA”) of a total USD 36.5M
senior debt facility
PT Optima Sinergi Convestama

USD 270M

IDR 100B

USD 60M

USD 20M

Revolving credit facility(ANZ portion – USD 30M)

1. IDR 50B – 3 yrs
revolving loan
2. IDR 50B – 1yr MOTF

USD 50M – revolving loan
and USD 10M – bankguarantee

USD 20M – 5 yrs
syndicated loan

PT Petrojaya Boral
Plasterboard

PT Indo-Rama Synthetics
Tbk.

PT Harum Energy Tbk.

4

PT Charoen PokphandIndonesia Tbk.

Indonesia represents a compelling market in which to
grow our financial services offering, however there areregulatory and competitive headwinds
Sound Macro Fundamentals
Latest data
PopulationGDP
Debt to GDP %Fiscal Deficit
Credit Rating
Median Age
Inflation
Fx Reserves
Domestic
consumption as% of GDP

242 million
USD 846 billion
26.5% by end of 2011 (150% in 1998)
1.2% of GDP in 2011 (2.2% in 2012)
Investment Grade28.2 yrs
4.5% (as end of Apr 2012)
USD 105 billion (as end of Mar 2012)60%

Strong and still improving banking sector
Indonesia banking
industry statistics

2007

2011

Return on assets

2.8%

3.03%

Return on equity

18%

19%

Loan/Deposit Ratio

66.3%

78.8%

Capital adequacy ratio

19.3%

16.05%

Cost to income

53.4%

44.0%

Regulatory•

Product and category limitations by Central Bank•

Ring fencing around subsidiary of international
group

•

Competition•

Indonesian banks are attractive – growing much
faster than foreign banks•

Major investment by regional ASEAN and

Regulatory uncertainty as to foreign ownershipinternational banking groups, e.g. Singapore,levelsMalaysia, Middle East and Australia

5
Source:Business Monitor, Euromonitor, Bank Indonesia

6

State-owned banks dominate the sector with about
52% of total loans
NPAT (AUDm)

ROE (%)
42.5

1,630

33.5

1,324
1,144

22.0

20.1

625

16.7

16.3

15.9

14.6

14.6

Panin Bank

Bank Danamon

BII

2.7

2.5

Citi

SCB

ANZ

ANZ

4.2

Bank Permata

BII

4.3

HSBC

SCB

HSBC

Bank Permata

ANZ

HSBC

SCB

Panin Bank

45.1
31.0

41.0
34.5
24.7

17.6
12.0

Large domestic banks

14.1
9.2

Foreign banks

Note: 1. Foreign controlled banks include significant stakes in local banks by foreign
players (Bank Danamon - DBS, Bank Permata – Standard Chartered)
Source: Bank Indonesia – audited financial report for the years ended 31 Dec 2011

6

Source:

8.8

7.6

BII

Panin Bank

Bank Permata

Bank Danamon

CIMB Niaga

BNI

BCA

SCB

Foreign controlled banks1

9.1

1.9

BRI

2.8

Bank Mandiri

2.9

ANZ

3.3

Citi

6.8

HSBC

8.1

BII

Bank Permata

Bank Danamon

CIMB Niaga

BNI

BCA

8.2

Panin Bank

13.4

BRI

18.9

Total Deposits (AUDb)

21.9

Bank Mandiri

CIMB Niaga

36

Citi

66

BNI

87

Bank Mandiri

118

BCA

121

BRI

176

Total Loans (AUDb)
34.0

19.1

8.7

202

Citi

343

CIMB Niaga

Bank Danamon

BNI

BCA

Bank Mandiri

BRI

361

19.1

Bloomberg, Bank IndonesiaWe have built competitive client position and scale
relative to international banks
ANZ is now competing with internationalbanks on equal footing

ANZ has overtaken SCB in consumer banking
with significant upside for Institutional growth

Revenue
Loans Deposits(USDm) Branches (USDb) (USDb)

Retail revenue Institutional revenue(USDm)(USDm)ANZ (2008)

82

2

0.5

0.6

ANZ (2008)

65

17

ANZ (2011)

294

28

1.8

2.4

ANZ (2011)

203

91

Commonwealth
Bank

105

93

1.1

1.3

Commonwealth
Bank

84

21

SCB

455

24

2.8

2.7

SCB

152

303

HSBC

515

43

3.3

4.4

HSBC

258

257

Citibank

616

22

2.9

4.3

Citibank

303

313

7
Source:Bank Indonesia, ANZ management reports

8

ANZ Institutional - strong in Natural Resources andbuilding FI, Agriculture, Diversified and Commercial
segments
Strategic pillars we are focussing on•

Deepen relationships with key clients via active cross sellof products and cross-border connectivity•

Expand ability to serve natural resources and commence
growth in agriculture and FI•Target wallet penetration for local corporates•

Expand our strategic capability in Global Markets•

Become Bank of Choice for Trade, focus on export flows•

Focus on cash and build significant low cost CASA•

Build people capability to support growth

Aligning ANZ core competencies withIndonesia macro trends•

Natural Resources – by providing product expertiseand industry insights to become the #1 natural
resources foreign bank and dominate the coal space•

Infrastructure – to leverage drive inrenewable/energy, ports, rail, selected airport space tobecome the Top 3 infrastructure foreign bank•

Agriculture – to support Indonesia agriculture sector in
selected space to become the Top 3 Agriculture foreignbank•Commercial – strong network in key regional centres
positioned us well to capture commercial client based

Product revenue mix & growth

Segment revenue mix & growth

Revenue (USDm)

Revenue (USDm)

100

91

100

80

80

60

60
40

40
17

20

20

91

17

0

0
2008

2008

2011

Lending

Trade

Natural Resources

Cash Management

Markets

Agriculture

2011
Diversified

Financial Institutions
Note:

1. Based on „active‟ customers

89We are focussed on reshaping the retail business mix tocapture affluent and emerging affluent customer growth•

Build up Signature Priority Banking clients base•

Build transaction balance and low cost FCY & IDR
deposits•

Build wealth revenue through up-sell and cross-sell•

Build up quality mortgage portfolio with affluent crosssell•

Diligently build in-segment personal loan balance sheet•

Enhance cards balance sheet

Top 2 segments represents 73% of system
deposits
Target segment

Strategic pillars we are focussing on

WealthCards

Notes:

2011
Personal Loans

Based on exchange rate AUD/IDR = 9192.6315

2-3%

97%

# of
customers

Average balance
per customer(USDk)

Personal loans

56k

2

Affluent customers

8k

105

Emerging Affluent
customers

22k

14

Segment

# of
cards

Average balance
per card

Credit cards

800k

0.5

Segment65

Mortgage

Affluent
Emerging
Affluent

Segment revenue mix & growth203

Banking

HNW

Mass

Product revenue growth (USDm)

2008% of population(2011)

9

ANZ has the potential to be the #1 International Bankin Indonesia
2012

2013

Continue product &platform build• Build mortgage and wealthbusiness• Complete platform andsystem build• Build and bench strength
people2014

2015

Activate theOriginate toDistribute model• Continue to build crossborder connectivity• Expand capability at outside

2016

2017+

Extend and deepen
franchise• Deepen organic growth• Become the leadinginternational bank

Java branches• Continue to build markets
capabilities

10

11

ANZ Asia Investor Tour 2012
ANZ Indonesia

AUSTRALIA AND NEW ZEALAND BANKINGGROUP LIMITED
8 June 2012

AppendixAppendix 1 - Indonesia’s economy offers a large walletwith good diversification across industry segments
Sound Macro Fundamentals

Fifth largest economy in Asia

Latest data
PopulationGDP
Debt to GDP %Fiscal Deficit
Credit Rating
Median Age
Inflation
Fx Reserves
Domestic
consumption as% of GDPCountry60%

Major industries align with ANZ sector strengths

Agriculture

Industry(energy, manufacturing &mining)Services(includes construction,
tourism)Indonesia

China

India

14.9

10.1

18.1

46.0

39.1

46.8

43.1

26.3

55.6

5 year CAGR

7,088.5
5,874.6
1,865.7
1,507.4
1,143.9
846.3
467.9
345.7
270.0
258.5
247.3

10.5%
0.0%
8.1%
2.6%
3.5%
6.5%
3.8%
2.6%
4.3%
5.7%
3.6%

1 China
2 Japan
3 India
Australia
4 South Korea
5 Indonesia
6 Taiwan
7 Thailand
8 Malaysia
9 Singapore
10 Hong Kong

242 million
USD 846 billion
26.5% by end of 2011 (150% in 1998)
1.2% of GDP in 2011 (2.2% in 2012)
Investment Grade28.2 yrs
4.5% (as end of Apr 2012)
USD 105 billion (as end of Mar 2012)

Industry contribution to
GDP (%)

2011 GDP(USDb)

Strong and still improving banking sector
Indonesia banking
industry statistics

2007

2011

Return on assets

2.8%

3.03%

Return on equity

18%

19%

Loan/Deposit Ratio

66.3%

78.8%

Capital adequacy ratio

19.3%

16.05%

Cost to income

53.4%

44.0%

Source: Business Monitor, Bank Indonesia, World Bank, IMF, CIA – The World Factbook, BPS
12

Appendix 2
ANZ Indonesia’s footprint, 28 branches in
11 cities, the largest network outside
Australia & NZ

Panin Bank Timeline(currently 38.82% shareholding)Year

Key events

1999–ANZ BGL acquired 11% of Panin BankMedan
2 branches;
4 ATMs2003- –ANZ BGL gradually increased ownership in Panin
2008 Bank to 29.9%
2009–ANZ BGL increased ownership in Panin Bank to
38.5%

2010

–ANZ BGL increased ownership in Panin Bank to
38.82%

Balikpapan
1 branch;
1 ATM

Palembang
1 branch;
1 ATM

Manado1 branch;
1 ATM

Makassar
1 branch;
1 ATM

Jakarta
13 branches;Surabaya
32 ATMs 4 branches;
Bandung;
7 ATMsDenpasar
2 branches;
1 branch;
3 ATMs Solo
1 ATM
1 branch;Semarang
1 ATM 1 branch;
2 ATMsHead Office and Branch in 2012

ANZ Head Office in 2008, located in Panin
Bank Head Office

13

ANZ Asia Investor Tour 2012
Natural Resources

AUSTRALIA AND NEW ZEALAND BANKINGGROUP LIMITED
8 June 2012

Will Rathvon
Global Head Natural Resources
International & Institutional Banking

Natural Resources financial performance
Asia Pacific600

Revenue
AUDm

Australia / NZ

19%

503

Europe & America
PCP
31%

559

469

400

268

291

1H11

2H11

HOH
20%

350

200
0

2009

Deposits
AUDb

2010

2011

1H12

15

17

18

Sep 10

Sep 11

Mar 12

10

Sep 0912
910

Sep 09Sep 1013

Lending
AUDb

1

Sep 11

Mar 12

Progressing towards target revenue mix
Natural Resources Revenue Mix
Current Mix - FY11
Metals & Mining
69%

Metals &Mining39%

Our AimOil & Gas
31%

Oil & Gas
45%

Metals & Mining
55%

Metals &MiningOil & Gas
40%

35%

Oil & Gas
31%

12%
Traders10%Services

Processing

8%

5%

Traders

7%8%Services

Processing

2

Services
Traders 2%

3%

Our business is driven by value added solutions andflow business and this will deepen further
Natural Resources Revenue Mix
FY11Advisory

26%

28%

25%

Value
Added

Our Aim

22%
37%

34%

48%

46%

49%

15%

15%

15%

35%

40%
48%

46%

52%

Flow

Lending

35%

45%

38%
25%

25%

23%

Total NRG Australia / Asia Pacific Europe &NZAmerica3

20%

Total NRG Australia / Asia Pacific Europe &NZAmericaWe deliver our Super Regional capabilities tolocal, regional and global clients
Value added transactions

Substantial flow transactions

Newcastle Coal
Infrastructure Group

Wiggins Island Coal Export
Terminal Pty Ltd (WICET)

Leighton Holdings

Fortescue Metals Group

AUD1bStage 2F Expansion
Project Finance

USD2.9b & AUD1.15b
Gladstone Coal Terminal
Advisory & Project Finance

USD600m
Syndicated Indonesian
Lease Facilities

USD965m
Master Lease Facility

2011

2011

2011

2012

Australia Pacific LNG

Salamander Energy Limited

Vitol Group

USD8.5bn
Project Finance

USD250m
Reserves based borrowingbase facility

USD150m
Asian Revolving Credit facility

USD5bnSyndicated Loan Facility

2011

2011

2012

2011

Sandfire Resources NL

Horizon Oil Limited

Hoa Phat Group /Hoa Phat Energy

Maritim Barito Perkasa(Adaro Group)

AUD390m
Project Finance& Guarantee

USD160m
Borrowing Base Facility
Mandated Lead Arranger &Structuring Bank
2012

VND600bn
Secured Syndicated Loan
Facility

USD160m
Syndicated Loan Facility

2011

2012

Peabody Energy

PT Bayan Resource Tbk

PT Bayan Resource Tbk

AUD150m
Medium Term Note

USD3.1bn
USD Bond Issuance

USD185m
Acquisition Bridge Facility

USD700m
Club Deal
Security Agent/Account Bank

2011

2012

2011

2012

2011

Caltex Australia Limited

4

Sinopec GroupNatural Resources business is building out its presence
and capability across the region
2008-2010

2011

2012

Largely Australia
focusedBuilding out
capability

Extending anddeepening presence• Leverage Australia’s
history• Emerging LNG
opportunity• Build out coverage inmajor centres• Domestic clients/needs• Build out offshore
specialisation• Improve productcapabilities• Balance sheet & flow

• Increase knowledge base

• Increase non-lending
revenues• 70% metals and mining• Broaden our O&G profile• Improve connectivity

5

Asian demand for core commodities is driving theinvestment need in the Super Region
Region contains large deposits, requiring AUD430b ofinvestment by 2020
ThermalCoal 54%

Iron Ore
48%

Thermal Coal

Copper 20%

China
India

Iron Ore
Malaysia& BruneiIndonesia

The Asia Pacific region will become
the largest exporter of LNG by 2020,
requiring AUD230b of investment
150

LNG

Australia

2012

2020

PNG

Brunei100500Australia

Indonesia

Malaysia

6

PNG

CopperLNG

Building a core client and global flow proposition
around trade flows in the Super Region
ANZ Natural Resources business is focussed on the right balance of industry
specialisation and regional and local teams
Local Natural Resource
Clients

Global Clients

Regional Clients

Specialist NRG relationshipteams provide international
connectivity

Industry specialists with
regional experts provide
deeper insights

Local relationships will use
industry specialists as needed•Flow products focus•Value added solutions
important•Strategic Balance Sheet
Use•Value added solutions focus•Grow Flow products•Strategic Balance Sheet Use•Value added solutions andFlow products focus•Strategic Balance Sheet Use

Europe & America is home to some of thelargest Natural Resources companies
Oil & Gas

Mining & Metals

Shell
ExxonMobil
BP
ChevronTexaco
Total
ConocoPhillips
Glencore

BHP
Rio Tinto
Vale
Xstrata
Anglo American
Peabody
Barrick Gold7

We want to be a core bank to our target clients and aworld class resources bank in our Super Region
Our value proposition focuses on connecting global, regional and local
clients and deepening customer relationships
2017

2012
Maintain and leverage
ANZ core strengths
into Asia•Selectively build niches
and leverage our lead
position within Australia

Drive Connectivity
with regional andglobal customers

Insight “from themines to the minds”•Build out our specialist
teams in our key offices
with deeper skillsets•Link company and asset •Increase our oil and gas
knowledge with Regional coverage talentand Global players•With core local teams add•Continue growing oil and bench strength
gas expertise•Strengthen strategic
positioning with our coreclients•Building intra-regionally –local insights, industry
insights and country
insights

Deepenrelationships•Capture more
•Focus our skill sets oncustomers across theour chosen global andvalue chain in multiple
core clients
sectors (from producers•Global insight coupled
to processors towith strong local
traders)
knowledge•Build on specific niches•This end to end businessincluding smaller
proposition will lead tointernational oil
deeper relationships
companies•Leverage expertise tocapture moretrade, commodities andcapital flows

8

Competition framework

House bankswith sector
specific
coverage

Investmentbanks withspecialist
coverage• Australia, Singapore, London,
Houston• Medium sized team
• Producer model – selectively adding• Extensive Asia, Mid East, London &Europe, Jo’berg and N. Africa,
New York, Houston, Calgary, SelectLatin America• Large team – recent downsizing –now hiring selectively• Australia (domestic focus)• Tokyo, Singapore, London• Small sized team

• Large team• Resources strategy – looking tohire• Advisory increasing, balance
sheet available• Extensive Asia, London, SelectMid East, New York, Houston,
Select Africa• Asia, Mid East, Extensive
Europe, Select Africa• Large team

• Major resource player, energy
platform a strength• Advisory-led with balance sheet• Balance sheet constraints• London, Toronto, Vancouver,
Houston, Jo’burg, Hong Kong,
Beijing, Singapore and Australia• Toronto, Vancouver, New York,
London, Sydney, Hong Kong,
Beijing, Houston• Medium sized team• Small team

• IB-led with balance sheet

Specialist
coveragemodel• Select Asia, Extensive
Africa, London, New York• Medium sized team• Advisory and structured financeled, limited balance sheet• Advisory-led, limited balance sheet • Advisory and structured financeled, limited balance sheet

9

PNG LNG

Case Study – Papua New Guinea

The PNG LNG Project
USD14bn
Project finance facilities
including ECAs
2009

The ANZ coverage model allowed us to maximise exposure acrossthe value chain including global, regional and local players

GlobalRegional

Local•

USD18b project led by ExxonMobil (USA) involving
Nippon Oil (Japan)•

Significant project financing role/relationship led tocapture of additional business in the Super Region•

Led to follow-on business with clients••

Major project structured financing•

Led to follow-on business••

PNG LNG Task Force set up targeting entire supply chain•

On-boarded 56 contractors to the project with deposits
and banking products

Significant presence and knowledge from strong
Regional relationships contributed to strong positioning

Pre-empt strategy coordinating with international
contractors

10

ANZ’s relationship with Fortescue is an
example of how we work with clients during
their growth period

Fortescue Metals Group
USD965m
Master Lease Facility
20122003 - 2006

2007 - 20102011 - 2012

Initiated Early
Relationship

Deepening theRelationshipCore Bank• Shortly after listing in 2003, ANZ • ANZ first Australian bank to put
its balance sheet behind
won the transaction banking
Fortescue (USD126m Truck &mandate following a joint pitch
Shovel Lease Facility)
by NRG and ANZ Business Bank.
Fortescue market capitalisation• ANZ led the Port & Railwas ~AUD20m at the time
infrastructure lease• In 2006, the account wastransferred from Business Bank • ANZ wins tender for the entire
trade business – managed via
to ANZ Institutional
ANZ China• Fortescue raises USD2.0b in
144A secured bond issue andconstruction commences• As Fortescue has evolved into
fourth largest iron exporter inthe world (now with AUD13.5bn
market cap), ANZ is a corebank

• ANZ holds majority of funds
from equity raisings andprovides Fortescue’s
performance bonding andguarantee requirements• ANZ was the joint MLA andbook runner, arranging thelargest known finance lease inAustralian corporate history USD965m Master Lease Facility• Our Super Regional strategy
closely aligns with Fortescue’s
strategy• Fortescue currently export the
majority of their iron ore into
China – risk managed by ANZ’s
Trade team

• Joint Advisory role for European
ECA Facilities

11

ANZ Asia Investor Tour 2012
Natural Resources

AUSTRALIA AND NEW ZEALAND BANKINGGROUP LIMITED
8 June 2012

Appendix

Top 10 Producers and Producer Companies
Thermal Coal

CopperTOP 10 PRODUCERS (2011)

TOP 10 PRODUCERS (2011)

Xstrata

C odelco

Bumi

Freeport McM

SUEK AGBHP Billiton

PT Adaro

Xstrata AG

BHP Billiton

Anglo American

Anglo Amer'nSouthern C opper

Drummond

Rio Tinto

Ugol (KZRU)

KGHM Polska M.

Banpu

Antofagasta
m tonnes

Tata Power
0

10

20

30

40

m tonnes

RAO Norilsk

50

0.0

0.5

Oil
Vale

Iran

Rio TintoIraq

BHP Billiton

U.A.E

Kumba R.

KuwaitArcelorMit'l

Venezuela

Fortescue

Nigeria

NMDC

AngolaMett'loinvest

Algeria

C liffs NR

4.0

6.0

8.0

m tonnes

Metinvest

mbbls/day
2.0

2.0

TOP 10 PRODUCERS (2011)

Saudi Arabia

0.0

1.5

Iron Ore

TOP 10 OPEC PRODUCERS (2011)

Qatar

1.0

0

10.0

Source: ANZ Research
1350

100 150200 250300 350

Top suppliers by region
Thermal Coal

Copper

SUPPLY BY REGION (2011)

l 36%
l 18%
l 12%
l 10%
l 9%
l 5%
l 10%

SUPPLY BY REGION (2011)

Indonesia

l 33%
l 8%
l 7%
l 7%
l 3%
l 6%
l 36%

Australia
RussiaC olombia
South Africa
Nth America
RoW

Oil

C hileC hinaPeru
US
Indonesia
Australia
RoW

Iron Ore

SUPPLY BY REGION (2011)

l 11%
l 10%
l 7%
l 5%
l 4%
l 3%
l 60%

SUPPLY BY REGION (2011)

Russia

l 39%
l 29%
l 7%
l 7%
l 4%
l 3%
l 10%

Saudi Arabia
US
Iran
C hinaC anadaRoW

Source: ANZ Commodity Strategy
14

Australia
Brazil
India
RussiaSth Africa
Nth America
RoW

Stronger long term commodity demand is forecast- emerging market demand is still modest on a per capita basis. The strongest
gains will likely to be in energy market, particularly natural gas
Commodity Consumption Per Capita
CopperIron ore

25

1.2
Taiwan1.0

15

Sth Korea
EU

10
China
5

US
Japan

RussiaIndonesia0

tonne/capita

tonne/capita

20

Sth Korea

0.6

Taiwan0.4

20,00030,00040,000US
India

50,0000

10,000Real GDP per capita (US$)

1.8

US
Sth Korea

30

Japan
Russia00Brazil
China

India

10,00040,000

EU

0.6
0.4

RussiaIndia
Indonesia
Brazil050,000Real GDP per capita (US$)

Japan

China

0.8

0.0
30,000US

Sth Korea

1.0

0.2
20,00050,0001.2

tonne/capita

tonne/capita

1.4

EU

Taiwan10
Indonesia

40,000

Taiwan

1.6

60

20

30,000

Thermal Coal

70

40

20,000Real GDP per capita (US$)

Oil

50

EU

Brazil0.0

10,000Japan

0.2

Brazil0 India

RussiaChina

0.8

10,00020,00030,000Real GDP per capita (US$)

Source: ANZ Commodity Strategy
15

40,00050,000ANZ China Commodity Index & China CPI
ANZ China Commodity Index tends to lead by one month
ANZ China Commodity Index & China CPI
points

%

600

10
8

500

6
400

4
2

300

0
200

(2)

100

(4)
00

01

02

03

04

05

06

07

ANZ CCI

0809

CPI (RHS)

Source: ANZ Commodity Strategy
16

10

11

12