ANZ ASIA
INVESTORTOUR 2014
AUSTRALIA AND
NEW ZEALAND
BANKING GROUP
LIMITED
24 JULY 2014
SANJOY SENMANAGING DIRECTOR
Retail Banking Asia PacificRetail Banking is an integral part of IIB customer
segments
International & Institutional
Banking

Customer
Segments
4

1

Business Execution& Performance

Global Products

GlobalBanking

8

6

Business
Performance
Management

Global Markets
and Loans

Enablement

Finance
9

Risk

2

International
Banking

5

10

7

HR
3

Retail Banking
Asia Pacific

GlobalTransaction
Banking

Credit &CapitalManagement

11

Operations &Technology

2Asia Pacific individual wealth growth rates remain highand markets are becoming more well regulated
Growing GDP and maturing financial markets in Asia Pacific•Strengthening regulatory frameworks•

Proliferation of products & services•

Heightening competition•

Urbanisation and industrialisation

Asia PacificNorth America

Europe

2015

2017

5%
4%
3%
2%
1%
0%
-1%

2012

2013

2014

2016

Real GDP Growth1

Asia Pacific individual wealth is growing at more than double the global rate
to become the largest personal wealth region by 20172
Private Financial Wealth
US$t

4.8%

136

CAGR

CAGR

CAGR

48

171

2.5%

2.1%

11.4%

CAGR

43

48

36

41

28

2012

2017 F

Global20122017 F

Asia Pacific(ex. Japan)

20122017 F

North America

1. D&B's Global Economic Outlook - 2013 to 2017
2. The Boston Consulting Group, Global Wealth 2013, Maintaining Momentum in a Complex World20122017 F

Western Europe

3Affluent customers in Asia typically have relationships
with 4-5 banks with a ~50% local vs foreign bank ratio
Number of relationships with and products held by affluent banking clients

TaiwanChina

11.5 products with
4.2 institutions

Singapore
12.2 products with
5.8 institutions

14.8 products with
5 institutions

Hong Kong
12.8 products with
4.7 institutions

Indonesia
4.9 products with
2.8 institutions

1. RFi Intelligence, Global Retail Banking Cross-Sell Report, Achieving and maximising the main bank status, November 20134

Retail Asia Pacific plays an important role in the ANZ
super regional strategy
3 core contributions to thesuper regional strategy

Liquidity

Our strategy is focused on the
4 key pillars
Geography

Segment

ChannelOperatingmodel

Focus onprioritymarkets

Affluent andEmerging
Affluent

Digitalproposition

Efficient
end-to-end
model

Driven by 7 key priorities

Brand & Physical
Network

Connectivity

1

Financial discipline2

Simplify

3

Enhance Customer Value Proposition

4

Grow our customer base5

Build on connectivity

6

Focus on control and compliance7

Build out talent base5

Our balance sheet continues to grow with stablecustomer deposits, contributing to increased liquidity
Stable Customer Deposits & AUM Growth
Customer Deposits & AUM$b
AUM

Strong Growth in Assets
Net Loans & Advances$b

Customer Deposits

18% CAGR

17.8

35% CAGR

14.7

12.8

7.9
5.7

4.3

Mar-12Mar-13Mar-14

Diversified Balance Sheet$b

Mar-12Mar-13

5% YoY increase in Net Funding
Lending

$1.2
6%

$6.8
32%

NLA 37%$5.5bDeposits

$5.2b
$7.9
37%

Mar-14Mar-14NLA
CASATime Deposits
Wealth Deposits

Deposits
63%

$5.3
25%

Mar-13Mar-146

Our brand awareness and market recognition as a key
foreign retail provider are increasing in Asia
Brand Awareness and Value

#51
15%

Awards & Recognition
Regional Retail Asia Pacific

Most valuable brand globally1

Excellence in Customer Centricity

Ahead of Citi & Standard Chartered Bank

Retail Banker International

Uplift in ANZ’s brand value
from 20132

Singapore

Singapore

Hong Kong

Certified Best in Class
for Service Quality(2013 – 2016)

Best Deposit Product2014

Best Deposit
Services Bank
2013 & 2014

Hong Kong

Hong Kong

TaiwanBest International
Personal Banking
2014

Best Financial
Planning Process(A – Z review)
2013

Best Consumer
Internet Bank
2012 & 2013

Indonesia

VietnamVietnam

Platinum Call Centre
Service2014

Best Retail Bank
2013

Best Foreign Bankand Retail Bank2014

1. 2014 BrandZ Top 100 Most Valuable Global Brands by Millward Brown – ANZ is ahead of Citi (#57) and SCB (not in Top 100)
2. Brand Value by Millward Brown

7

A focused strategy and execution are crucial to deliver
our 3 core contributions to ANZ in Asia Pacific

GEOGRAPHY

SEGMENTCHANNELSOPERATING
MODEL

Focus on core

Focus on

Building a strong

Continue togeographies while“affluent” anddigital proposition

simplify ourleveraging on our“emerging

infrastructure anddistinctive

affluent”

processes andgeographic

customerbuild an efficient

footprint acrosssegments“end-to-end”

Asia Pacificoperating model

markets

8

Geography: Growing in priority markets and leveraging
our distinctive footprint to deliver connectivity and growth1
A distinctive geographic
geographic footprint
A distinctive
footprint

21

Countries

136

Branches514

ANZ-branded ATMs

3,700

Retail staff

2 MILLION

Customers• Australia & New Zealand expertise• Clear connections across the region• One of the world‟s strongest, safest and mostsustainable banks
Singapore & Hong Kong Offshore Banking
Unit








Differentiated offering• Unique offering for other countries customers
to invest in Singapore and Hong Kong – thetwo main hubs of Asia financial centre

ANZ SG and HK offshore banking clients, #‟000




 



39%



 

 


Sep-12

Sep-13Mar-14

1. As of Jun-14
9Segment: Positioned as a niche player, targeting
Affluent and Emerging Affluent segments
Retail Customer Lifecycle
Save andTransact

Access tocreditPurchase an
asset

Grow yourwealthProtect life
and assets

CASA

Credit Card
Personal Loan

Mortgage

Investments

Insurance

Emerging Affluent

AffluentCore banking and simple wealth solutions with a

Wealth-led advisory proposition to protect andfocus on self-service:• Design product and value proposition

grow assets• Holistic portfolio management

according to customer life cycle• Enhancing our online capabilities• Diversified range of wealth solutions
 1000+ investment products,
 120+ insurance solutions

Emerging Affluent
Features at a glance10Segment: Signature Priority Banking is designed tomeet the needs of sophisticated affluent clients in Asia
Signature Banking Proposition• “Recognize me, understand me” through the
A – Z review• Banking the family - holistic financial needs
planning• Retirement planning• Australia and New Zealand expertise• Wealth solutions and advisory
Portfolio Management

Dedicated Servicing Model• Dedicated Relationship Manager• Supported by a team of Specialists:

Investment Consultant

Treasury SpecialistInsurance SpecialistMortgage

Actionable market insights to makeinformed decisions

A–Z
Review

11

Channel: Building out our digital proposition to provide
a multi-channel experience for our customers
Current Retail Asia Pacific Channel Capability
136

Branches

14

Contact Centres

514

ANZ-branded ATMs

18

Countries with Digital capability

1. Contact Centre locations include Manila and Suva hub
12Channel: Branchless mobile banking is significantly
improving our distribution capability in the Pacific•

Launched in 4 countries:

 Papua New Guinea
 Samoa Solomon Islands
 Vanuatu•

More than 500 merchants•

Acquired over 50,000 new to bankclients•

Processed over 1 million transactions
since launch

13

Operating model: Streamlining our business to become“simpler, cheaper and faster”
Transforming our Operating Model

Improving Revenue per FTE1
$‟000

•

Simplify our business•

Optimise our resources•

Build a strong execution culture•

Strengthen our foundation

12%
192

1H13

Accelerating growth of our Affluent
customers2
14%

„000

108

95

1H13

216

1H14

Improving Affluent customer retention
through cross sell334%

Investment penetration

30%

Credit Cards penetration

19%

Insurance penetration

29%

Term Deposit penetration

1H14

1. Annualised Revenue per FTE
2. Affluent client figures for Asia only
3. Product Penetration into the Affluent Client Base as at Mar-14

14

Driven by its 7 priorities, Retail Asia Pacific is delivering
diversified income and sustainable growthDiversified Revenue

Improved Financial Indicators
Key Financial Indicators,
reduction/increase from 1H12 to 1H14

Banking &Wealth,

23%

42%

29%

1H14
18%
8%

Credit Cards
Unsecured Lending
MortgageTransaction Banking
Wealth 9%

Cost to Income

 10%

JAWS

21%

Assets, 58%

Consistent Growth
Operating Income$mIncreasing Profitability
Cash Profit$m

6% CAGR
402

42% CAGR
355

365

43
21

1H12

1H13

1H14

1H12

27

1H13

1H14

15

Retail Banking strategy and execution are aligned tomarket opportunities and IIB’s strategic priorities
IIB STRATEGICPRIORITIESConnecting more
Customers by Providing
Seamless Value

Delivering Leading
Products throughInsights

Intensifying Balance
Sheet Discipline

Scaling & Optimising
Infrastructure

KEY AREAS OF FOCUS FOR RETAIL BANKING• Build end-to-end focus on customer delivery – from point ofacquisition and throughout the lifecycle• Enable our clients with a multi-channel platform with a strong
digital proposition, building further our brand awareness• Provide product that delivers value based on customer needs• Leverage market and competition insights to enable our financial
solutions to our customers• Focus on a well-balanced asset and liability growth• Ensure value-driven product offering with healthy balance growthand margin deliverables• Simplify our infrastructure and processes in serving ourcustomers• Focus on developing bench strength and improve productivity

16

The material in this presentation is general background information about the Bank‟s activities
current at the date 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 the investment objectives, financial situation or needs ofany 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 ourintent, belief or current expectations with respect to ANZ‟s business and operations, market
conditions, results of operations and financial condition, capital adequacy, specific provisions andrisk 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 UnitedStates 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 orcircumstances 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

ANZ ASIA
INVESTORTOUR 2014
AUSTRALIA AND
NEW ZEALAND
BANKING GROUP
LIMITED
24 JULY 2014
SAMEER SAWHNEY
MANAGING DIRECTOR
Global Banking

Global Banking forms a key element of IIB’s coverageof our target segments
International & Institutional
Banking

Customer
Segments
4

1

Business Execution& Performance

Global Products

Global Banking

8

6

Business
Performance
Management

Global Markets
and Loans

Enablement

Finance
9

Risk

2

International
Banking

5

10

7

HR
3

Retail Banking
Asia Pacific

GlobalTransaction
Banking

Credit &CapitalManagement

11

Operations

2

The macro fundamentals show that Asia enjoys thehighest growth in banking revenue pools
Asia Pac is expected to deliver almost 50%
of growth in banking revenue pools

Asia Pac markets will represent ~US$800
billion in revenues by 2017

Forecast absolute growth in Global Banking revenues
US$b, 2012-171 ,2Forecast revenue pools for key Asia Pacific markets byproduct
US$b, 20171

CAGR:

6%

10%

Lending

Transaction
Banking

Markets

Australia
& NZ

36.9

6.3

10.0

Singapore

10.0

2.1

4.5

Hong Kong

8.5

2.5

8.2

Indonesia

29.9

4.2

0.6

China

310.7

39.2

13.1

Japan

186.4

20.6

25.0

India

56.6

14.1

9.0

4%
4,151

53%

46%
3,087
2%

World
2012
1.
2.

Australia
& NZ

Asia

Rest ofWorld

Source: BCG Banking Revenue Pools Database 2013
Global Banking defined as all banking segments

World
2017

3

Through industry expertise, Global Banking focuses onlarge, cross border companies operating in ANZ’s region
ANZ Customer Segments
IIB Relationship
Businesses

Global Banking
Industry coverage forlarge multi national
companies operating in
ANZ’s region

International Banking

Retail Banking Asia
Pacific

Global Banking
Industries

Resources, Energy &Infrastructure (REI)Sub Segments••••

Oil & Gas
Global Commodities Companies
Mining and Metals
Utilities & Infrastructure

Global Diversified
Industries (GDI)• Food Beverage & Agriculture• Consumer Services & Industrial• Telecom, Media, Entertainment &Technology• Transportation

Banks & Diversified
Financials• Global, regional and local banks withtransaction needs in Asia Pacific• Regulated Brokers, Exchanges, Leasing &Finance Companies, Mortgage and Other
Financial Institutions

Funds and Insurance• Real Money, Sovereign Wealth Funds,
and Private Equity funds• Life and Property/Casualty insurers• Public Sector

4Global Banking constitutes a significant proportion of
IIB’s overall customer business
Global Banking is focused on a selectnumber of IIB total customer base…

…generating almost half the revenue

IIB Clients (excl. Retail)1(Sep-13)

FY13 Institutional Revenue
Remainder ofInstitutional

41%~$4.5b
GlobalBanking59%

GlobalBanking, 8%<30,000…with approximately half the assets
Institutional Net Loans and Advances(Sep-13)International Banking
92%

1.

Remainder ofInstitutional

GlobalBanking

IIB Clients include Global Banking, International Banking and Emerging Corporate customers
5A diverse, growing client base focusing on high growthareas
Our client portfolio is diversified acrossindustry…
Global Banking Revenue1 Mix by Segment

$2.4b

$2.6b

…and regionally as we build a broader
Asian client franchise
Global Banking Revenue1 Mix by Geography

$1.4b

$2.4b

$2.6b

$1.4b

FY12

FY13

1H14

AmericasFinancial
Institutions
Group

EuropePacific
Asia

Resources,
Energy &Infrastructure

New ZealandAustralia

GlobalDiversified
Industries
FY12

FY13

1H14

1. Total Effort revenue in AUD. Percentage splits exclude intra geographic and intra segment revenue
6

Global Banking has a specific set of clients with whom
we are targeting a deeper and broader relationship
Who we serve and how will we succeed
Global Banking

Characteristics of a Global
Banking client

Leading/Significant players intheir industries

Specific setof clientsthat are of a
globalnatureoperating in
Asia Pacific,
including ourhomemarkets ofAustralia
and New
ZealandOperates a multi geographybusiness model

Requirement for banking
capabilities around flowbusiness together with need formore strategic advisory andfunding

Complex banking requirementswith multiple buying centres

How we will win?

• Senior Industry bankers -Experience in the region andinsight, ability to execute,relationships at CFO/CEO
level• Global team structures -seamless connectivity acrosscentres for coverage andexecution• Higher intensity - low accountloading, stronger alignment
with product sales groups• Stronger Senior Executive

sponsorship - Institutionalise
these relationships

7Strong regional execution capability and product hasgiven ANZ a strong position in Australasia and Asia
No.1 Lead Bank for more large corporate
customers in Australia1

A top 4 Corporate Bank in Asia2
by Market Penetration

Share of lead bank, 2014
40%

35%

Greenwich Associates Large Corporate Study

Asian Large Corporate Banking Market Penetration
60%

31%

30%

23%

50%

20%
10%

ANZ

Bank 1

Bank 2

Bank 3No.1 Lead Bank for more large corporate
customers in New Zealand1
Share of lead bank, 2014
60%

53%

Important Relationships

40%
6%

0%

11%

17%

12%

11%

24%

20%

Bank B

Bank C

2013

30%

2010

Bank D
Bank G

10%50%

Bank A

17%

21%

Bank IBank EBank FBank H

40%
27%

30%
20%

0%

21%
7%

10%
0%
ANZ

Bank 1

Bank 2

Bank 3

Greenwich Quality Index3 - Overall Relationship Quality(Difference from the Average)
Represents the momentum of growth and quality improvement
achieved by ANZ Bank over the past 4 years

1. Peter Lee Associates Large Corporate and Institutional Relationship Banking surveys, Australia and New Zealand 2014. Ranked against the Top 4 competitors.
2. As defined by Total Relationships Market Penetration In Asia
3. The Greenwich Quality Index score is based upon a normalized composite of all qualitative evaluations transformed to a scale of 0 to 1,000 with the difference
from the average shown. Note: Cross-hairs are calculated by the average of the banks shown in graph

8

Global Banking business offers a good mix of flow and value
added solutions with increasing regional connectivity acrossexisting clients
Currently a substantial portion of ourbusiness is flow and value add

With extra upside from regional
connectivity

Global Banking revenue mix

Regional connectivity1# of Meaningful Clients (LHS)
Avg. Revenue per client (RHS)

1%

#

21%

26%

$m

1,400

$4.5m
$4.0m

1,200

FY13 =~$2.6b$3.5m

An extra country
increases revenue
exponentially

1,000

$3.0m

800

52%

$2.5m

45%

600

$2.0m

$1.5m

400

$1.0m

Strategic Advisory – ECM, M&A

Value added solutions – Investment Products,
Structured Lending, Derivatives, DCM and Trade
Flow business – Cash, Trade, Vanilla FX,
Commodities, Rates and Credit

Lending – Vanilla Term Loans
1.

200

$0.5m

0

$0.0m
1

2

3

4

5

6+

# of countries client banks in with ANZ“Meaningful Client” master groups that generate $30,000 for Institutional clients, and $10,000 for Corporate & Commercial clientsin rolling 12 month revenue
9With coverage in 17 countries, Global Banking is able toassist our clients grow through the region
From a lending relationship in one country to one company, now banking 33
companies across nine countries in the group and becoming Trusted Advisor
Customer Case Study:

2008-09• Relationship Initiation
through participation in key
transactions (as JLM)
• Key products of: Relationship
Lending, Import Finance and ShortTerm Loan• 4 companies
2010-12• Led/ Ideated key transactions and broad based
engagement across geographies/ products• Key products of: Loan Syndications, Trade
Financing and Short Term Loan
• 21 companies
2013+• Partner the Group in strategic dialogue• Products extended to include DCM and PCM• On boarded 10+ entities since FY13

2008-09
Revenue $4m

2010-12
Revenue $13m

2013+
Revenue $21m

10

Global Banking will achieve its strategic priorities by
providing an end-to-end approach with customers
Global Banking “Supply Chain”
PROCUREMENTTRANSPORTPROCESSING

WHOLESALE

FREIGHTSTORAGE

TRANSPORTPACKAGING

RETAIL• Global banking aligned tosupply chain of multi nationals• Able to provide services

though the vertical value chainof our customers• Leveraging off relationships

throughout the world to assist
clients undertake business• Ability to provide seamlessconnectivity through industries
and geographies

11Delivering on these IIB Strategic Priorities will be
critical for us to maintain our home market lead
position and accelerate even further in Asia
IIB STRATEGICPRIORITIESKEY AREAS OF FOCUS FOR GLOBAL BANKING

Connecting more
Customers by Providing
Seamless Value• Deepen existing client relationships• Increase connectivity of our clients in ANZ’s region targeting growthon specific trade corridors where ANZ can offer full service• Provide an end-to-end approach with large customers who are often
vertically integrated

Delivering Leading
Products throughInsights• Use industry insights to drive solutions dialogue with clients• More intense coverage with a high degree of industry specialisation• Aligning our key strengths to customers needs particularly in CapitalMarkets, Trade, Commodities, and FX on the product side, andResources/Energy and FIG from an industry perspective

Intensifying Balance
Sheet Discipline• Review customer value proposition and adjust accordingly using
various metrics and balance sheet versus non balance sheet usage• Continual review client list, ensuring resources are allocated to thosecustomers with sophisticated and global reaching needs only
• Multi product service strategy requiring Balance Sheet hold levels andrisk limits will continue to be managed

Scaling & Optimising
Infrastructure• Continually update our staffing to customer ratios and staffing
footprints to align with our customers growth projections and needs• Add transaction volumes without increasing the current fixed costbase, and leverage our newly created customer strategy and capitalmanagement teams to extract productivity gains

12

APPENDIX

Recognised expertise through recent awards

PETER LEEPETER LEE

ASIA PACIFIC SYNDICATEDLOAN AWARDSASIA PACIFIC SYNDICATEDLOAN AWARDSASIA PACIFIC SYNDICATEDLOAN AWARDS

NO.1 LEAD BANK FOR MORE LARGECORPORATE CUSTOMERS ACROSSAUSTRALIA AND NEW ZEALAND

NO. 1 FOR OVERALL MARKETPENETRATION IN AUSTRALIA AND
NEW ZEALAND

ASIA PACIFIC SYNDICATEDPROJECT FINANCE LOAN HOUSE OF
THE YEARSYNDICATED LOAN HOUSE OF THE
YEAR – AUSTRALIASYNDICATED LOAN HOUSE OF THE
YEAR - NEW ZEALAND

2014

2014

2013

2013

2013

INFRASTRUCTURE
INVESTOR AWARDSASIA PACIFIC SYNDICATEDLOAN AWARDSASIA PACIFIC SYNDICATEDLOAN AWARDSASIA PACIFIC SYNDICATEDLOAN AWARDSASIA PACIFIC SYNDICATEDLOAN AWARDSINFRASTRUCTURE BANK OF THE
YEAR IN ASIA PACIFICSYNDICATED CORPORATE
DEAL OF THE YEARSYNDICATED FINANCIAL
INSTITUTION DEAL OF THE YEARSYNDICATED PROJECT FINANCE
DEAL OF THE YEARSYNDICATED ACQUISITIONFINANCE DEAL OF THE YEAR

2013

2013

2013

2013

2013

Alibaba Group Holdings Ltd

Yes Bank Ltd

Ichthys LNG Pty Ltd

CNOOC Canada Holding Ltd

BEST INVESTMENT BANKAWARDS - AUSTRALIABEST INVESTMENT BANKAWARDS - AUSTRALIAASIA PACIFIC SYNDICATEDLOAN AWARDSASIA PACIFIC SYNDICATEDLOAN AWARDSBEST DOMESTIC CURRENCY BOND
ARRANGERBEST LOANS ARRANGERBEST SYNDICATED LOAN

BEST PROJECT FINANCING

2013

2013

2013

2013

Origin Energy

Ichthys LNG

1. Peter Lee Associates Large Corporate and Institutional Relationship Banking Surveys, Australia and New Zealand 2014. Ranked
against the top 4 competitors

14

Successful execution capabilities

AUD 400,000,000

EUR 2,300,000,000

USD 400,000,000

USD 360,000,000

USD 1,500,000,000

USD 700,000,000

AngloGold Australia

Volvo

China Hongqiao

Tong Teik

CNOOC Limited

Formosa Steel IB Pty Ltd

REFINANCEJOINT MANDATED LEAD ARRANGER& BOOKRUNNER

REVOLVING CREDIT FACILITIESMANDATED LEAD ARRANGER &BOOKRUNNER

3YEAR SENIOR UNSECURED NOTESJOINT LEAD MANGER & JOINTBOOKRUNNER

SYNDICATED BORROWING BASE
FACILITY FOR AGRI COMMODITIESJOINT MANDATED LEAD ARRANGER& BOOKRUNNER

5 – YR TERM LOAN FACILITYMANDATED LEAD ARRANGERTERM LOAN FACILITYMANDATED LEAD ARRANGER,UNDERWRITER & BOOKRUNNERIN PROGESSJUNE 2014

JUNE 2014

MAY 2014

JUNE 2014

JUNE 2014

USD 900,000,000

SGD 500,000,000

USD 1,350,000,000

USD 1,000,000,000

EUR 1,500,000,000

USD 700,000,000

Beijing Capital Group

United Overseas Bank

1 YEAR BRIDGE LOAN FACILITYMANDATED LEAD ARRANGER &UNDERWRITERPT Perusahaan Gas
Negara (Persero)

Cargill Inc.

BASEL III-COMPLIANT TIER 2BONDSJOINT LEAD MANAGER & JOINTBOOKRUNNER

Compañia Española dePetróleos S.A.U.

JUNE 2014

Ameropa

3Y10-YEAR 5.125% 144A/REGSSENIOR UNSECURED NOTESJOINT LEAD MANAGER & JOINTBOOKRUNNER

REVOLVING CREDIT FACILITYMANDATED LEAD ARRANGER &BOOKRUNNER

REVOLVING CREDIT FACILITYMANDATED LEAD ARRANGER &BOOKRUNNER

SYNDICATED BORROWING BASE
FACILITY FOR GRAIN AND
FERTILIZER PRODUCTSPARTICIPATING BANK

MAY 2014

MAY 2014

MARCH 2014

MARCH 2014

JANUARY 2014

USD 550,000,000

USD 250,000,000

AUD 8,600,000,000

EUR 800,000,000

NZD 725 MILLION

AUD 1,000,000,000

GS Coal Pty Ltd

ANZ Commodity Trading
Pty Ltd

AMP Group Finance
Services Ltd

ACQUISITION
SOLE MANDATED LEAD ARRANGER,UNDERWRITER & BOOKRUNNERJANUARY 2014

Origin Energy

Origin Energy

Fletcher Building Limited

IRON ORE PREPAYMENT FACILITY
SOLE MANDATED LEAD ARRANGER,UNDERWRITER & BOOKRUNNER

SYNDICATED FACILITYJOINT MANDATED LEAD
ARRANGER, UNDERWRITER &BOOKRUNNER

BOND ISSUANCE
JOINT LEAD MANGERSYNDICATED LOAN FACILITYJOINT LEAD ARRANGER, FACILITYAGENT

NOVEMBER 2013

NOVEMBER 2013

NOVEMBER 2013

DECEMBER 2013

SYNDICATED REVOLVING FACILITYJOINT MANDATED LEAD ARRANGER& BOOKRUNNER

AUGUST 201315

The material in this presentation is general background information about the Bank’s activities
current at the date 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 the investment objectives, financial situation or needs ofany 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 ourintent, belief or current expectations with respect to ANZ’s business and operations, market
conditions, results of operations and financial condition, capital adequacy, specific provisions andrisk 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 UnitedStates 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 orcircumstances 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

ANZ ASIA
INVESTORTOUR 2014
AUSTRALIA AND
NEW ZEALAND
BANKING GROUP
LIMITED
24 JULY 2014
SIMON IRELAND
GLOBAL HEAD OF BANKS &DIVERSIFIED FINANCIALS
Financial Institutions GroupFIG is a customer segment within Global Banking

International & Institutional
Banking

Customer
Segments
1

GlobalBanking

Business Execution& Performance

Global Products
4

8

6

Business
Performance
Management

Global Markets
and Loans

FIG

Enablement

Finance
9

Risk

2

International
Banking

5

10

7

HR
3

Retail Banking
Asia Pacific

GlobalTransaction
Banking

Credit &CapitalManagement

11

Operations

2

ANZ FIG serves a targeted, select set of Financial
Institutions active across our network
Segment

Description

Banks• Global, regional and local
banks with transaction needs

Diversified
Financials• Regulated Brokers, Exchanges,
Leasing & Finance Companies,
Mortgage and other Financial
Institutions

Insurance• Life insurers, general insurers
and re-insurance brokers

Funds• Fund managers, sovereign
wealth funds, and alternative
funds with appetite for AsiaPacific and Australia & New
Zealand assets

Emphasis on Low Balance
Sheet Intensity Products…

• Markets: FX, Rates, Credit andCommodities• Transaction Banking: Clearing,

Payments and Cash Management,
Trade Finance• Selective capital support…Leads to high returns

3FIG continues to grow and has a liquid balance sheet
FIG Financial
Performance

Relative to
IIB Total

YOY Growth
16.6%

17.5%
13.0%

Revenue1
1H14

FY12

FY13

1H14 PCP

22.2%

Deposits

7.1%
Mar-14
Sep-12
14.7%

Lending

Sep-13

12.4%

Mar-14
Rest of IIB

FIG

Sep-12-2.4%
Mar-14 PCP

Sep-13-6.7%
Mar-14 PCP

1. FIG revenues include amounts booked in other divisions
4

The expanding financial services sector in Asia provides
the foundation for FIG growth
Growing Banking Assets
Banking Assets
US$ tnGrowing Assets Under Management
2014-2017
CAGR

142

Personal Wealth1
US$ tn2014-2017
CAGR

4.3%

87

10.3%

6.2%
7.0%

125

73

3.3%

108
Rest of World
North America
2.8%

Rest of World

North America

Europe5Australia &New Zealand

5.7%

55

6.0%

5.0%

4
3
5.7%

Asia Pacific

EuropeAustralia
Asia Pacific

2010

2014

2017

1

2010

1. Personal wealth defined as financial assets, including stocks, bonds and funds. Excludes real estate
Source: BCG analysis, EIU, Cerulli Associates

2

3

9.6%
7.6%

2014

2017

5

We have built our FIG capabilities in Asia on ourAustralia/NZ foundation and the IIB product build-out
2009 – 20102011 - 2013

Today

Getting off the Ground

Building the
Platform

Competitive Offering• Identified FIG as a global
growth opportunity• Strong AUD and NZD
clearing franchise• Enhance product offering –DCM, FX, FI Trade, Goldloans and leasing• Strong presence in homemarkets, Asian hubs, China,
Europe and America• Extended coverage team

• Deepening capabilities inIndia, Indonesia, Japan andTaiwan• Leading AUD and NZD FX
player• Established presence in
Middle East

• Established Asia coverage
team• Introduced specialization
within FIG• Established India, Malaysia
and Pacific FIG presence• Global presence: circa 140
FTEs in 18 offices• Global presence: circa 100
FTEs in 17 offices• Balanced franchise withcompetitive capabilities
across both Transaction
Banking and Markets• Leading position in AUD/NZD
clearing, Syndications, DCM,
Regional FX and Gold
• Global presence: circa 150
FTEs in 18 offices

6FIG is expanding in Asia and improving product mix as
we deepen our capabilities and broaden our reach
Geographic Mix

Product Mix

FIG Revenue Mix by Geography1
Pacific
Asia

3.2%
24.3%

2.6%
26.8%

FIG Revenue Mix by Product
2.6%

30.5%

Europe

14.9%

15.2%

Americas

15.8%

15.4%

14.3%

Australia &New Zealand

41.9%

39.9%

38.7%

FY13

1H14

FY12

Retail,Private Bank
& Other

24.0%

21.3%

19.9%

10.0%

8.6%

Lending

10.1%

Markets

32.6%

39.8%

41.9%

Transaction
Banking

33.3%

29.0%

29.6%

FY12

FY13

1H14

14.0%

1. Based on location of the client irrespective of where revenue is booked
7

FIG competes with global and regional players using a
focused model balancing revenue potential with cost
FIG Competitive Positioning

Full Service
Universal
Banks

Increasing
cost

Broad FICC &Commercial
BankingSpecialist Banks(Clearing,
Investment
Banks)
Domestic

Regional

GlobalIncreasing cost8

ANZ FIG’s value proposition is built on a unique mix ofrating, footprint and product capabilities
ANZ Global FIG Value Proposition
Value Proposition

ANZ’s Competitive Advantage• Provide international Financial
Institutions with capital raising,transaction banking, and investment
opportunities across Australia, New
Zealand and Asia Pacific• AA rating, reputation and steeping into
gaps vacated by competitors• With local specialists on the ground,
we provide clients with deep insights
and access to the right products inindividual markets across the region• Flow bank for market products(namely FX, Fixed Income, DCM, Trade
Finance) across Asia Pacific• Liquidity provider to regional financial
institutions and targeting investors –specialize in Asian investors• While ANZ is non competitive with
American and European incorporated FI’s
in their home market, we can provide
their Asian footprint

9

Leading products strengthen ties to customers andenhance cross-sell of flow products
Debt Markets• Strong track record of issuance for
Chinese, Korean, Singaporean andMiddle Eastern FIG issuers• Leading position in AUD in both
Australia and Asia

• Leader in Basel III compliant issues• Largest CNH bond issuance for a
Taiwanese financial institution• Number 2 by volume and number 1

by number of deals in 2013 as
Mandated Arranger of Loan Syndication
for Asia Pacific ex Japan

Physical Gold• Top 3 position in gold imports into China – the largest
market globally, with 1,540 tonnes imported during 2013

• Recognized as the #1 Foreign Bank Market Maker by
Shanghai Gold Exchange 4-yrs running from 2010-2013• Relationships with the 10 domestic gold importingbanks in China – 4 of the 10 did their first import with
ANZ and 5 of the 10 their first overseas gold loan

• One of just two foreign banks licensed by the PBOC toimport gold into China• One of just two foreign bank market makers licensed
on the Shanghai Futures Exchange• Also have presence in other markets in Asia and the
Middle East

Flow Products• Markets: FX, Rates and Credit• Transaction Banking: Clearing, Cash Management and FI Trade• Rated #1 for AUD and NZD Clearing Relationships by FImetrix1
1. FImetrix 2014 Bank-to-Bank Services in Australia & New Zealand Dollars survey
10

As demonstrated by sophisticated transactions for ourclients

USD

USD 400m

USD 300m

USD 800m

USD 700m

AmBank (M) Berhad
USD400mn 5-Year 3.125%
Reg S only
Senior Unsecured Notes

China CITIC Bank Int.
USD300m 7.250%
PerpNC5 Basel III-Compliant
AT1 Notes

United Overseas Bank
USD800mn 3.750%
10.5NC5.5 Basel IIICompliant T2 Notes

Bank of Communications
Hong Kong Branch
USD700mn 2.125%
3-Year Bonds

JUNE 2014

APRIL 2014

MARCH 2014

JANUARY 2014

AUGUST 2013

SGD 500m

JPY 12b

PHP 1.2b

USD 375m equiv.

RMB 890m

United Overseas Bank
12NC6 3.5% Basel IIICompliant Tier 2 SubordinatedNotes

NongHyup Bank

Term Loan Facility
Mandated Lead Arranger

Metrobank Card
Corporation
PHP1,170mn 6.210%
10NC5 T2 Notes

Far East Horizon
USD375mn equivalentMulti-currency USD/HKD/CNH
Syndicated Term Loan

MAY 2014

MAY 2014

DECEMBER 2013

DECEMBER 2013

Chailease Holding
Term Loan Facility
Mandated Lead Arranger,
Bookrunner, Sole Coordinating
Arranger
NOVEMBER 2013

AUD 400m

AUD 400m

AUD 500m

AUD 400m

AUD 500m

Korea Development Bank
AUD 400mn Dual Tranche
Fixed and Floating Rate Bonds

Emirates NBD PJSC
AUD400mn 5.750%
5-Year Bonds

The Export-Import Bank of
Korea
AUD 500mn Dual Tranche
Fixed and Floating Rate Bonds

National Bank of Abu Dhabi
PJSC
AUD400mn 4.750%
5-Year Bonds

MAY 2014

APRIL 2014

APRIL 2013

MARCH 2013

Bank of China, Sydney
Branch
AUD500mn
3m BBSW +110bps
Floating Rate TCD
NOVEMBER 2013

USD 135/EUR 95m
Hana Bank
Term Loan Facility
Mandated Lead Arranger

Local
Currency

AUD

11

FIG is critical to linking home market and Asian clientsto global investors in our originate-to-distribute model
Originate from ClientsResources, Energy& Infra.

Distribute to Clients

Balance Sheet

Commercial /Private Banks

Global Diversified
Industries• PrimaryDistribution

Financial
Institutions• Secondary
Distribution

Pension Funds &SWFs

International
Banking• Originate to
known demand

Alternative Funds

Investment Funds

FIG is Critical to Originateto-Distribute

Progress to Date

• Distribution of DCM and
Syndicated Loans• Established relationships with

key investors – fundmanagers, pension &sovereign wealth funds,
alternative funds and insurers
Future Build

Corporate

Insurers

Commercial

HNW & Affluent

Cross-sell• Enhance sales capabilities in

key investor markets: London,
New York, Japan, Hong Kong,
Singapore, Taiwan and Korea

Cross-sell• Develop financing partners for
Infrastructure, Energy, Mining
and Agriculture assets

Flow Products

12

FIG’s objective to be a core FICC and TB partner for FI’s
across Asia Pacific aligns to IIB priorities
IIB STRATEGICPRIORITIESConnecting more
Customers by
ProvidingSeamless Value

KEY AREAS OF FOCUS FOR FIG• Enhance investor client value proposition through increased
specialization of the relationship team

• Dedicated Markets and Transaction Banking sales teams for FI for
enhanced solution capability• Deepen investor relationships, facilitating the originate-todistribute model for our corporate business• Provide Asia footprint for institutions outside Asia Pacific

Delivering Leading
Products throughInsights

Intensifying Balance
Sheet Discipline• Enhance Rates and Credit offering for Funds and Insurance• Continue roll-out of e-FX platform across all FIs• Cash Management for Insurance and Diversified Financials• Maintain strict risk discipline through Business Risk Appetite
Statement and active portfolio reviews• Manage client returns objectives• Staying on Strategy

Scaling & Optimising
Infrastructure• Utilize new products in other parts of the business as they
become available• Extend clearing capability to targeted Asian currencies (INR, IDR,
PHP, RMB)

13

APPENDIX

Loan Syndication League Table
2013 Mandated Arranger League Table for Financial Institutions(Asia Pacific ex Japan)
Rank

1.

LenderAmount(USD mn)

Deal Count

1

Mizuho Financial Group

466

6

2

ANZ

435

11

3

HSBC

433

8

4

Mitsubishi UFJ Financial Group

360

5

5

Sumitomo Mitsui Financial Group

316

6

6

Commerzbank

315

10

7

Standard Chartered

290

7

8

Citibank

166

5

9

Bank of America Merrill Lynch

155

5

10

Wells Fargo

144

5

Source: Thomson Reuters LoanConnector, ANZ
15

The material in this presentation is general background information about the Bank’s activities
current at the date 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 the investment objectives, financial situation or needs ofany 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 ourintent, belief or current expectations with respect to ANZ’s business and operations, market
conditions, results of operations and financial condition, capital adequacy, specific provisions andrisk 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 UnitedStates 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 orcircumstances 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

ANZ ASIA
INVESTORTOUR 2014
AUSTRALIA AND
NEW ZEALAND
BANKING GROUP
LIMITED
24 JULY 2014
WILL RATHVONGLOBAL HEAD OFRESOURCES, ENERGY &INFRASTRUCTURE
Resources, Energy &Infrastructure

Resources, Energy and Infrastructure (REI) is acustomer segment within IIB
International & Institutional
Banking

Customer
Segments
1

GlobalBanking

Business Execution& Performance

Global Products
4

8

6

Business
Performance
Management

Global Markets
and Loans

REI

Enablement &Control

Finance
9

Risk

2

International
Banking

5

10

7

HR
3

Retail Banking
Asia Pacific

GlobalTransaction
Banking

Credit &CapitalManagement

11

Operations &Technology

1Emerging industry themes in the Resources, Energy andInfrastructure space provide ongoing opportunities
Key industry themes

Opportunities• Global LNG demand is forecast to• Rationalisation and „high-grading‟ ofmore than double by 2030

Oil & Gas

• China and Japan is emerging as theworld‟s major source of demand• Australia will become the largest
LNG exporter• Continued demand for coal with
Metals &Mining

LNG portfolios including M&A andconsolidation expected to increase• Australian energy companies toexpand beyond Australia into Asia

unprecedented urbanisation,
Australia and Indonesia being key
suppliers• Asian investors continue to pursue• Mining companies managing costs• Investors include players from major

in lower commodity priceenvironment

Metals & Mining opportunities

Asian countries (China, Korea, Japan)• Australian utility assets remain
Utilities &Infrastructure

attractive investments for foreign
investors• Port privatisations and new port
developments being pursued• Demand for energy infrastructure• Global investors continue pursuing

Australian assets and opportunities• >USD50bn per year of investment
required across Asia

continues to increase in Asia

2The ANZ REI business focuses on 4 key segments
Segment

Oil & Gas

Description• Oil & Gas development andproduction, LNG, refining, andpetrochemicals• Globally diversified miners, industry
Mining &MetalsGlobalCommodities
Companies

leaders, and specialist resourcecompanies• Primary focus is with producers andconsumers of coal, iron ore, copper,and gold• Larger diverse global Commodities
companies involved with Oil & Gas
and Mining & Metals activities• Includes Asian strategic investors
and traditional commodity traders

Emphasis on selected
products and geographies• Transaction Banking: Trade

Finance and Cash Management• Markets: DCM, FX, Rates, andCommodities• Global Loans & Advisory:
Structured Debt and
Financial/M&A Advisory• Key countries: Australia, China,• Global, regional, and local
Utilities &Infrastructure

Indonesia, and Singapore

infrastructure and utilities
companies• Focus on ports, power, privatisation,
and PPP

3

REI is a growing priority segment, leveraging strong
Australian expertise for our offshore offering
REI Financial
Performance

Relative to
IIB Total

REI Business Mix – 1H14
Revenue by geography

Revenue by sub-sector

10%

Revenue48%

1H14

Deposits

30%

31%

43%

11%

27%

Europe & America

Mining & Metals

Australia & NZ

Oil & Gas

Asia Pacific

Global Commodities Companies
Utilities & InfrastructureMar-14Loans by geography

Deposits by geography

4%

33%

Lending

33%

25%

63%

Mar-14
Rest of IIB

REI

43%
Europe & America

Australia & NZ

Asia Pacific4We are leveraging our long history with the Australian
Resources & Infrastructure sector to grow REI globally
ANZ’s rich history with natural resources and infrastructure Supported resources and infrastructure clients since 1886, remaining
committed throughout all commodity cycles and changes in the global
industry; initially focused predominantly in Mining & Metals

 Natural resources banker to over 60% of the largest resources
companies on the ASX300

 We have had a lead bank relationship with a number of major
resources and infrastructure companies for over 50 years(BHP: ~140 years, Shell: ~120 years, AGL: ~50 years)

 Built deep LNG expertise in Australia over the last decade, having
been involved in every Australian project over the last 8 years

 ANZ has been a key player in the financing of a number of National
infrastructure projects

5ANZ is differentiating itself with a whole of client
approach through insights and home market expertise
Nature of ourclients

ANZ’s proposition

How we will win

Geographic
breadth inoperations

Leading with our deep
experience and expertise in
Natural Resources in theAustralian market• Leveraging our resources expertiseto differentiate from global andregional peers• Continuing to enhance our crossborder product capabilities todifferentiate with domestic peers

Requiringcross-bordercomplexbanking
solutions“Global Hybrid Bankers”
offering strategic dialogue toclients; translating into
insights and tailoredsolutions• Established cross-border productsuite capability for our bankers to
structure for clients
 Debt Capital Market
 Commodities teamOperating in achallenging
andcompetitiveenvironment

Deep understanding of
associated risks to delivercomplex solutions which areappropriately structured
and priced

 Structured Trade Finance Regional Cash Management
platform

6

We are building a core client and global flow
proposition focusing on key market corridors
REI is focused on a small number of complex multi national clients, the rightbalance of Industry specialisation, and regional & local teams

Type ofclientGlobal Clients

Regional Clients

Local Clients

Specialist relationshipteams providing
international
connectivity

Industry specialists
with regional experts
provide deeper
insights

Local relationships willuse 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
and Flow products focus• Strategic Balance Sheet
Use• AustraliaKeymarketcorridors

Asia, Europe, &Americas to Australia• Australia to and from
North Asia

• Intra Asia

• China• Singapore• Indonesia

7

We will continue to deepen our establishedrelationships with less capital intensive products
Our value added solutions will focus on flowbusiness and value added solutions…

…with deeper focus on key
offerings

REI Revenue Mix

Flow business (Markets)

2%

3%
19%

24%
1H14

20%

21%

•

Foreign Exchange•

Commodities

•

Rates

•

Debt Capital Markets

Our Aim

Structured & Strategic
55%

56%

Strategic advisory

Flow business

Value added solutions

Vanilla lending•

Structured Trade &Export finance•

Project finance•

Asset finance•

Advisory & Finance8

Good progress to date with our strategic evolution byleveraging our home market strengths to build offshore
Stage I (2008-11):
Initiating our “SuperRegional” approach

Our clientsare:• Leading European and US-

based Oil & Gas, Commodities
companies• Large operations acrossmultiple countries, particularly
across Asia Pacific

ANZ was:• Deep sector expertise

historically in resources sector
in Australia, but with limited
geographic reach• Limited cross-border insights• Leveraging home market

expertise to expand offshore
capability

Stage II (2012-13):
Executing to “SuperRegional” approach

Our clients arelooking for:• Deep understanding of their

Stage III (2014+):
Success stories

Becoming one of the
primary banks
Structuring complex crossborder solutions

business given the challenging
and competitive environment• Complex cross-border solutions

that are tailored to client‟s needs

What ANZ is now:
• Geographic reach in key centres(Australia, HK, Singapore,
Europe, US, China, Indonesia)• Leveraging our history andstrong anchor market to provide
industry expertise and insights
into Australian market• Translating these insights tooffer complex tailored solutions
to multi-geographic clients

USD 20,000,000,000

AUD 500,000,000

Inpex

Puma Energy

SENIOR DEBT PROJECTFINANCING
MANDATED LEAD ARRANGER &BOOKRUNNER, SUB-FACILITYAGENT,
UPSTREAM ACCOUNT BANKACQUISITION & TRADE
FINANCE
SOLE BRIDGE UNDERWRITER,JOINT MANDATED LEAD
ARRANGER, UNDERWRITER &BOOKRUNNERDECEMBER 2012

FEBRUARY 2013

USD 1,150,000,000
Formosa Plastics GroupADVISORY & FINANCING FOR
JOINT VENTURE AGREEMENT
FOR MINING INVESTMENT IN
AUSTRALIAFINANCIAL ADVISOR, BRIDGEFINANCING PROVIDER & TERM
FINANCING UNDERWRITER

AUGUST 20139

Clear opportunities to support the IIB priorities in themedium term
IIB STRATEGICPRIORITIESConnecting more
Customers by
ProvidingSeamless Value

Delivering Leading
Products throughInsights

KEY AREAS OF FOCUS• Drive deeper multi-geographic sector coverage expertise in thefour priority sub-segments to multi-national clients, leveraging
our expertise as the leading resources bank in Australia• Target Global and Regional clients aligned to key corridors
where ANZ has strong coverage (e.g. EMEAI-Australia & Asia,
China-Australia, Australia-North Asia, Asia-Asia)• Deeper cross-border product penetration across key markets
where ANZ has established strong capabilities (e.g. Australia,
China, Singapore, Hong Kong, Indonesia)• Further enhance product expertise to meet the needs of Global
Banking clients

Intensifying Balance
Sheet Discipline• Focus on strategic dialogue with clients to drive greater crosssell with less capital intensive complex strategic solutions, andde-emphasise the reliance on balance sheet lending

Scaling & Optimising
Infrastructure• Integrate Natural Resources and Utilities & Infrastructure
expertise to drive economies of scale to capture banking
opportunities across the entire industry value chain

10

APPENDIX

Client feedback with our strategy
Client Testimonials

Oil & Gas

“Over the past 24 months, we have noticed a positive change in working moreclosely with ANZ‟s global Natural Resources team, and have appreciated the team‟sco-ordination, commitment, and responsiveness to our banking and finance needs.
We will continue to seek ANZ‟s industry specialist advice and financing support as
one of our close international banking partners.”

Mining &Metals“Since ANZ implemented an industry focus, the relationship with ANZ has
unequivocally changed from mediocre to being a top relationship bank. Today, theregional industry mining expertise, coupled with a strong local coverage capability
makes ANZ the leader in coverage of this industry in the region. This can only beachieved with the strong leadership from Singapore, as well as the senior level
access from key ANZ members in Melbourne.”

GlobalCommodities
Companies“We like ANZ particularly because they have a speciality in serving commodity andmetals companies. They…offer fast execution, and are able to provide a full suiteof services, including consulting.”

Utilities &Infrastructure“ANZ regularly engages with us in strategic discussions, demonstrating a depth ofmarket and industry insights. This has resulted in more informed and dynamic
discussions well beyond day-to-day transactional requirements. ANZ‟s industry
expertise and regional strengths, are why we have entrusted them to lead arrange
select core funding facilities and acquisitions in Asia Pacific.”

12

The material in this presentation is general background information about the Bank‟s activities
current at the date 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 the investment objectives, financial situation or needs ofany 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 ourintent, belief or current expectations with respect to ANZ‟s business and operations, market
conditions, results of operations and financial condition, capital adequacy, specific provisions andrisk 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 UnitedStates 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 orcircumstances 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

ANZ ASIA
INVESTORTOUR 2014
AUSTRALIA AND
NEW ZEALAND
BANKING GROUP
LIMITED
24 JULY 2014SREERAM IYERCHIEF OPERATING OFFICER,INTERNATIONAL &INSTITUTIONAL BANKING

Operational Strategy

International & Institutional Banking StructureInternational & Institutional
Banking

Customer
Segments
4

1

Business Execution& Performance

Global Products

GlobalRelationshipBanking

8

6

Business
Performance
Management

Global Markets
and Loans

Enablement

Finance
9

Risk

2

International
Banking

5

10

7

HR
3

Retail Banking
Asia Pacific

GlobalTransaction
Banking

Credit &CapitalManagement

11

Operations
andTechnology

2Our function supports the delivery of the IIB strategy

Customer interface
Customers

Customer Service

Operations Delivery Model

Frontline
business

Enterprise
Capability
Service Quality• International• Retail, Wealth& Private
Bank

Customerself service

Regional Delivery
Network:management• Product, market
knowledge

Operations
Service Providers

Delivery• Global

Customer initiation• RelationshipPeople Capability• Wellington
Cost to Serve• Close proximity to• Bangalore• Manila• Technical solutiondelivery• Melbourne• Chengdu
Operational Risk

• Suvacustomers

Technology is a foundation for customer initiation, relationship, service and delivery

3

Our operations delivery model focuses on customer
outcomes
Operations Delivery Model• In addition to transactional processing responsibilities, we proactively
provide customer insights and analytics to service ourrelationship teams and add value to our customers

Service
Quality• We have made ~3,000 client visits in the last 18 months to deepen
our understanding and customise our response• Through our Tiered Service model, we have an integrated crossproduct service proposition for customers, including a single
point of contact and query resolution to better match service
capability and transaction delivery standards• Our enterprise wide operations and technology team has physicalpresence in ~28 countries.

PeopleCapability• Our regional delivery networks now have ~10,000 employees
across Australia, New Zealand, India, Philippines, China and Fiji andare a source of talent to support future growth• Our people capability includes change and transformation
expertise across Markets, Digital, Payments and Lending4

Our Regional Delivery Networks have created scale tosupport efficient business growth
Operations Delivery Model• We optimise our cost to serve customers through productivity
measures in-country and our regional delivery centres

Cost to Serve• Our function processed ~30 million transactions in 2013 withthe capability to increase for products across Payments, Trade,
Retail, Markets and Wholesale Lending• Appropriate investments in our technology infrastructure has enabledstandardisation, simplification and automation in many areas• We have an improved level of business knowledge and analyticalskill-base which are utilised to increase the sophistication ofwork done in the delivery centers• Robust governance framework and operational controls mandates arein place with core processes carried out in multiple and best
suited locations

Operational Risk

• Workflow tools enable workforce management flexibility and load
management• Disruptions due to business continuity risks are well tested for
hypothetical and real risks without adverse customer impacts

5

Regional Delivery Centres are strategically aligned andintegrated to the business
From

To

Operational advantages via the Regional Delivery Network
Individual Hubs to an Integrated Network with Enterprise thinking

Individual
hubsIntegrated
Network• Built-in operational resilience with load balancing of critical processes toimprove business continuity planning and execution• Strong cross hub collaboration and resource sharing• Maximise skills and scale in the right geographic location

Optimising capabilities to improve productivity

Business
Transitions

Operational
Productivity• Process standardisation in key processes with investment in key
technology infrastructure• Continuous Process improvements through Quality initiatives
From being part of a process to being an integral part of end-to-end
process

Business
Process

Customer
Solution• Project SMEs in the hubs delivering award winning platforms inpayments• Domain expertise for complex transaction in Trade Guarantees andMarkets
Driving and owning service outcomes

HotelManager

Service
Owner• Simplified customer engagement and escalation models• Standard Service Catalogue• Implement functional structures based on standard processes

6Technology has a pivotal role in the transformation of
all our core business domains
Connected Customer Experience
Self-serve channels

Assisted channels

 A consistent customer experience
via a multi-channel platform forour business A regional delivery network
Common Enterprise Capabilities
Business and Experience Integration

allowing standardised processes An integrated transaction banking
portal for Institutional

Customer

Payments

Operations

Products &Services

Supportedby aregional
network

Robust IT Foundation Capabilities
RobustInfrastructure

Seamless
Integration

Convenient
Access An improved payments network

providing a seamless experience An upgraded infrastructure toenhance resilience and reduce
operating risks

 Keep pace with evolving security
Secure Banking Environment

environment to maintain customer
and regulator confidence

7

IIB Operations have successfully increased productivity
Improved capability and geographic
dispersion of where our employees are based

Driving productivity

IIB Operations FTE profile1

IIB Operations Cost to Revenue2
6.0%

Offshore

5.41%

Onshore

5.5%

36%

5.0%

4.45%

4.5%

33%

4.25%
3.86%

4.0%

80%
3.5%

3.0%

74%

FY11

FY12

FY13

1H14

Transactions per FTE
26%
5,346

67%
20%

4,865

64%

4,469

FY11

FY12

FY13

1H14

FY11

1. Operations onshore and offshore profile; excludes countries with regulatory constraints to offshore
2. Cost growth has been calculated on constant FX & includes IIB Operations hub costs

FY12

FY13

8

Creating a continuous improvement culture to drive
business performanceStandardise

EnrichSimplify

Actions

Re-engineering standard
processes and creating more
flexibility across the network

Maintaining a focus onconsistent customer service
experience while providing
specialised support for our top
clients

Driving simpler and streamlined
processes with a focus on
customer experience throughend-to-end improvements

How

Using standardised
technology solutions acrossour network to improve
efficiency and productivity

Deepening our understandingof customer needs via
continued customer visits andbetter leveraging Customer
Insights

Focusing on quality delivery todrive improvement in accuracy
and turn-around-times

Won 11 awards from JP
Morgan across the
network following
upgrades of payments
infrastructure allowing
for greater straight
through processing

Enhanced servicing model
deployed for 350
Australian customers to
improve retention andcross sell

Digitisation (workflow andimaging) of manual
payments processing in 12
countries creating capacityand productivity

Client servicing toolutilised to capture client
insights in Payments &Cash, Trade and Markets
Operations –10 countries

Transactive registration
process in Australia & NZ
reduced by up to 66%
allowing faster take up by
customers

Outcomes

Created consistency of
Cross-Border Product
Documentation
tailored to Global
Diversified Industrials

9Our priorities are focused on supporting the next phaseof IIB strategy
IIB STRATEGICPRIORITIESKEY AREAS OF FOCUS FOR OPERATIONS ANDTECHNOLOGY

Connecting more
Customers by
ProvidingSeamless Value• Nimble cross-border delivery by making use of our natural time-

Delivering Leading
Products throughInsights• Continue to utilise customer analytics and insights through ourzone advantage to shorten servicing and processing turnaround• Drive continuous improvement to simplify processes

regional delivery network to connect with the business andcontribute to revenue generation• Connected and simplified client on-boarding experience leading
Intensifying Balance
Sheet Discipline

to enhanced customer cross-sell, leads and retention• Proactively managing operating and regulatory risks on an end
to end basis• Continue to improve and consolidate our systems acrossScaling & Optimising
Infrastructure

Payments, Markets, Core Banking, Wholesale Lending and Retail• Improve straight through process rates and sustain our
productivity agenda

10

APPENDIX

International & Institutional Banking

CustomerBusinesses

Divisional IIB COO

IIB Lending Operations

Divisional IIB COO

Australia
New ZealandGlobal Wealth
Divisional COO’s
Australia
Operations
Hub

New ZealandOperations
Hub

Asia-PacificOperations
Hubs

Institutional
Operations
Centres of
Excellence

Regional Network of Hubs and Delivery Centres
WealthAustralia

NZ

Asia-Pacific

Institutional

Group Management

Global Markets Operations

Asia Pacific Retail, Private Bank
& Wealth Operations

IIB Technology

IIB Projects

Group Technology
Control and Support Functions

IIB Payments & CashOperations

Global Trade Operations

Enablement

WealthOperations
Centres of
Excellence

GTSO – Delivery

Australia
New ZealandGlobal Wealth
Customer Businesses

Divisional
IIB COO

Our function is well integrated into the IIB business andenterprise delivery division

IIB Property

IIB Sourcing

12The material in this presentation is general background information about the Bank’s activities
current at the date 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 the investment objectives, financial situation or needs ofany 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 ourintent, belief or current expectations with respect to ANZ’s business and operations, market
conditions, results of operations and financial condition, capital adequacy, specific provisions andrisk 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 UnitedStates 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 orcircumstances 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