being different

2007 Shareholder Review

This year has seen another solid performance from ANZ. Our profit after tax was up
13% to a new record of $4,180 million, and we increased our 2007 dividend by 9% to136 cents per share. Our track record in delivering for each of our major stakeholders
was recognised in September when we were rated the leading bank globally in the
Dow Jones Sustainability Index.

being different

as you can see

2007 investor snapshot

13 %Profit After Tax ( $m )

07

12 %

06

market capitalisation ( $b )

3,688

06

4,180

49,331

07

55,382

9%
Dividend ( cents per share )8%cash Earnings per share 1 (cents )

06
07

06

125
136

195

07

210

Customers ANZ is leading the way in providing convenient, simple andresponsible banking products and services for our customers.

Community ANZ has made a long-term commitment to improving the financial
literacy of some of the most disadvantaged people in society.

Staff ANZ’s focus on developing its People and Culture has created the mostengaged banking workforce in Australia and New Zealand.

Environment ANZ is focused on minimising its environmental footprint and has
committed to become Carbon Neutral in Australia and New Zealand by end 2009.

1 Excludes non-core items

has its rewards

Welcome to ANZ’s 2007 Shareholder Review. The Shareholder Review
is designed to provide an easy to read summary of how ANZ performed
in 2007 for each of our stakeholders, including shareholders, staff,
customers, and the community.
1
2
4
6
8

2007 Investor Snapshot
Chairman’s Report
Chief Executive Officer’s Report
Our Business Performance
Review of Divisions

12 Five Year Summary
15 Director and Executive
Remuneration 2007
16 2007 Corporate Responsibility
20 The Board of Directors
22 Information for Shareholders

Chairman’s
Reporta message from charles goode2007 has been a year of achievement and change. ANZ has performed solidly during 2007,delivering value for shareholders, customers and the community. Our level of staff
engagement grew and our approach to corporate responsibility gained increasing
recognition. Looking ahead, we are conscious of the demands of increasing competition
and the turbulence in world markets.

In Australia, we completed the successful acquisition of ETRADE Australia Limited.
We have committed approximately $1.5 billion to investments during 2007. Given this,
we are taking the opportunity to enhance our strategic flexibility by offering a discountof 1.5% under our Dividend Reinvestment Plan, which is underwritten and expected toraise an additional $1 billion in capital.

Our performance
ANZ’s performance in 2007 was characterised
by strong revenue growth and a prudent
approach to risk.

LeadershipJohn McFarlane completed his term as Chief Executive on 30 September having
occupied that position for ten years. John made an enduring contribution to ANZ’sdevelopment, especially in the areas of customer satisfaction, staff engagement, lifting
our position in the community and consistently delivering on promises to shareholders.
ANZ now has a strong foundation and on behalf of shareholders and the Board, I thankhim for his contribution and service.

Our profit after tax for the year ended
30 September 2007 of $4,180 million was up by
13%. Cash profit1 was $3,924 million, up by 9%.
The dividend is 136 cents per share fully franked,
a 9% increase on 2006.
These results reflect the efforts of ourmanagement and staff, and I thank them fortheir contribution.

Expansion and growth
The Personal Division delivered another verystrong result driven by revenue growth of 12%.
In New Zealand we increased market sharein a number of key segments and delivered
improved financial performance. The
Institutional Division had a mixed year
but should perform better in 2008.

Michael Smith commenced as Chief Executive on 1 October. Michael is an outstanding
all round international banker. He joins us from HSBC where he had responsibility for
HSBC’s business in Asia.
David Gonski retired from the Board in June 2007. David made a significant contribution
and we thank him. Ian Macfarlane, former Governor of the Reserve Bank of Australia,
joined the Board in February 2007.

Outlook Looking ahead, there are some global uncertanties however
the economies of Australia, New Zealand and Asia remain supportive ofgrowth. ANZ remains in good shape, with a strong liquidity and funding
position. We are well positioned for 2008.

We continued our expansion in Asia. We acquired
an initial 19% of Malaysia’s AMMB Holdings
Berhad; 20% of China’s Shanghai Rural
Commercial Bank; 60% of the Vientiane
Commercial Bank in Laos; 10% of Vietnam’s
Saigon Securities Incorporation; and 100%of the Citizens Security Bank in Guam.
1 ANZ excludes from cash profit significant items, ANZ National
Bank integration costs and volatility associated with fair value
movements relating to economic hedges.

Charles Goode Chairman
3

Chief Executive officer’s
reporta message from MICHAEL smith

The opportunity I see ahead of us as your new Chief Executive Officer is to take
ANZ’s strengths that have been established over the last decade and focus on growth
opportunities in Australia, New Zealand and in particular in Asia. My aim will be to createa significant domestic and regional financial services institution which will deliver
superior growth and performance for our shareholders.

Creating a stronger vision for ANZ’s future.
The fundamental economic shifts going on in the region and in banking globally mean weneed to create a stronger, more ambitious long term agenda for ANZ. That will involve a
focus on opportunities domestically and in Asia with a view to building ANZ into a much
more significant domestic and regional financial services institution.

ANZ’s performance in 2007 underlines its
strengths with earnings a record $4,180 million,
up 13%. The Personal Division was a standout.
New Zealand performed well. Strong results are
flowing through from our network business andbanking partnerships in Asia. Performance in
the Institutional Division was mixed and weare addressing this with initiatives to improve
performance in 2008.

In Australia and New Zealand competition
is intense. We need to continue to sharpen
our performance to be an even more successful
and sustainable financial institution tomorrow,than we are today.

Despite a certain degree of global uncertainty,
we expect conditions in Australia, New Zealandand Asia Pacific to remain supportive. Assetquality also remains sound.
Over the last decade, the foundation which
has been established extends beyond financial
performance. We have leading levels ofcustomer satisfaction in retail banking inAustralia and in New Zealand. Our Institutional
business is the leading Relationship Bank inAustralia. We have a top quality management
team and a strong culture among our people.

4

And our corporate responsibility agenda
was recognised by achieving the leading
ranking among banks globally in the
Dow Jones Sustainability Index.
However, we cannot afford to sit still andbe complacent about that foundation.
My immediate priority is to re-energise thebusiness by bringing more edge and urgency
to ANZ’s performance.

My aim as your new Chief Executive is to
give a new vitality to our momentum that will
deliver superior growth and performance forour shareholders.

I also want to create a stronger vision for
ANZ’s future. That will involve a focus on
growth opportunities domestically, and in
Asia, to create a significant domestic andregional financial services institution. Global
economic growth is now being driven by
developing countries, many of them in Asia.
For example, it is forecast that China will
overtake the US as the world’s largest
economy by 2020. India too will become
an even more significant global economy.
Michael Smith CEO

5our focus
Our Business perforMance
Domestic focus,
international presence

Other
NPAT $82m
Asia
NPAT $171m

Australia New Zealand Asia Cambodia China
Hong Kong Indonesia Japan Korea Laos Malaysia
Philippines Singapore Taiwan Thailand Vietnam
Pacific American Samoa Cook Islands East Timor
Fiji Guam Kiribati Papua New Guinea Samoa Solomon
Islands Tonga Vanuatu India Europe United
Kingdom United States of America

ANZ’s Personal Division continues to be among the best performing retail banks in Australia
with earnings up 16%. Our Institutional Division was up 6%, assisted by a recovery on along standing bad debt. New Zealand Businesses, which does not include the Institutional
business in New Zealand, had strong growth in profits before provisions, however a return
to a more normal provision charge impacted profit growth. In our Partnerships and Private
Bank business, we saw particularly strong earnings growth.
Pacific
NPAT $121m

NPAT ($m)

16%Personal

6%

instiTutional6%

New zealand BUSINESSES

1,239

06

1,442

07

Australia
NPAT $2,889m

06

1,363
1,448

07

New Zealand
NPAT $917m
772

06

822

07

( NZ$m)A uniQue geographical presence

34%

Partnerships & Private
Bank

6

06
07

184
247

We are one of the leading banks in Australia, and the biggest bank in New Zealand. We are the only
Australian bank with a significant presence in Asia, and our representation is amongst the largest
in the region. We remain the number one bank in the Pacific. We also have a substantial presencein the key financial centres of London and New York.

7

Review of divisions
personal

Review of divisions
institutionala message from Brian hartzer

a message from peter hodgson

The Personal Division has a clear strategy toincrease its market position in retail financial
services by making ANZ’s service to ourcustomers more convenient, simple andresponsive.
In 2007 this strategy continued to show
results. Revenue growth was strong, up 12%.
Expenses were well managed, increasing by
8% as we continued to invest in future growth.
Profit grew to $1,442 million, up 16%. To
support our growth, in 2007 we added morethan a thousand frontline staff, opened 39 newbranches and extended our opening hours inmore than 80 branches. We installed morethan 400 new ATMS, making a total of 1,000
new ATMs installed since 2004.
Today we are Australia’s second largest retailbank1. We were named Money magazine’s
Bank of the Year for the seventh time in thepast eight years. While delivering theseresults, the engagement level among ourfrontline staff has continued to grow.
Together, our 14,000 people have made ANZamong Australia’s best performing retail banks
and there are still significant opportunities for
us to build our customer proposition and togrow in the future.
Our financial performance
($m)

2007

2006

%

Income

4,693

4,183

12%

Operating Expenses(2,240)(2,081)

8%

Profit before Provisions

2,453

2,102

17%

Provisions2

(393)

(336)

17%

Tax

(618)

(527)

17%
16%

Profit after Tax

1,442

1,239

Cost to Income (CTI)

47.7%

49.7%

—

Staff (FTE)

14,096

12,9139%

EARNINGS BY BUSINESS3
26% Mortgages
26% Banking Products
20% Consumer Finance
12% Rural Commercial andAgribusiness; and Small
Business Banking
8% Esanda
5% Pacific
4% Investment andInsurance Products
1 Source: Roy Morgan Research – Traditional Banking Products
12 months moving average to June 2007
2 Provision for Credit Impairment
3 Includes -1% for ‘other’Institutional serves more than 40,000 business,
corporate and institutional clients worldwide.
We do this through the CEO Agenda - building
partnerships with our clients – and the Owner
Agenda, working with private companies andsmall business owners.
This year we have strived to give our clients
understanding, delivery and commitment, andthe results of the 2007 Peter Lee Associates
Large Corporate and Institutional RelationshipBanking survey show our progress. We retained
our No. 1 Relationship Bank status for the second
consecutive year, and our share of lead bankrelationships remained steady at 37%. We also
won the categories ‘Most Trusted Advisor’,‘Knowing the Company’s Industry Best’ and‘Providing Creative Ideas and Solutions’.
These solutions include new products liketrading in renewable energy and carbon
certificates, ASPRIT, which enables wholesale
investors to benefit from the performance ofcompanies considered sustainability leaders,
and the Business Equity Fund, which provides
an opportunity to co-invest alongside ANZ’s
Private Equity business.

Institutional had a mixed year in 2007. Income
growth of 8% was below Group average and at
the bottom of the target range (7% to 10%). A
large credit recovery in the first half helped drive
more acceptable profit of $1,448 million, up 6%.
Given the strength of our franchise, we believe
this Division is capable of better performance,
and we anticipate stronger results in 2008.

Our financial performance
($m)

2007

2006

%

Income

3,502

3,256

8%

Operating Expenses(1,378)(1,256)

10%

Profit before Provisions

2,124

2,000

6%

Provisions1

(69)

(58)

19%

Tax

(607)

(579)

5%
6%

Profit after Tax

1,448

1,363

Cost to Income (CTI)

39.3%

38.6%

—

Staff (FTE)

5,225

4,915

6%

EARNINGS BY BUSINESS 2
58% Working Capital
20% Markets
18% Business Banking
15% Corporate Finance

1 Provision for Credit Impairment
2 Includes -11% for ‘other’9Review ofdivisions
New zealand

Review of divisions
partnerships & Private banka message from Graham Hodges

a message from bob edgar

Four years after completing the acquisition of
The National Bank in New Zealand, we haveachieved a great deal. The integration of thetwo banks is now well behind us, we haveclearly defined our key retail banking customer
propositions and all the businesses are
performing well.

In 2007, ANZ’s Partnerships businesses
comprised our wealth management joint venturewith Dutch based ING in ING Australia (INGA),
our international banking partnerships acrossAsia, and our Private Bank business.

capabilities. During 2007 we invested in
Malaysia’s AMMB Holdings Berhad, China’s
Shanghai Rural Commercial Bank, Vietnam’s
Saigon Securities Incorporation and Vientiane
Commercial Bank in Laos.

Our 40 year presence in Asia established ANZ
as Australia’s leading bank in the region. With
developing countries driving global economic
growth, increasing ANZ’s position in Asia isa strategic priority.

We are also investing in our own branches
in Asia to capitalise on links to Australia and
New Zealand through trade, immigration andcapital flows. We are establishing an Asia Pacific
Division headed by Alex Thursby, who has
joined us from Standard Chartered Bank. Total
earnings from Asia delivered very high growthof 37% in 2007.

Now we are investing to grow our businesses
for the medium term. We launched mobile
phone banking, and are investing in our callcentre, internet banking and telling platforms.
We are also focused on growing where we areunderweight in our market share (consumer
finance and private banking) and developing
new products and services in our traditional
heartlands of Rural, Corporate and Institutionalbanking.
Our financial performance(NZ$m)

2007

2006

%

Income

2,462

2,272

8%

Operating Expenses(1,172)(1,128)

4%

Profit before Provisions

1,290

1,144

13%

Provisions1

(78)

(5)

large

Tax

(390)

(367)

6%

Profit after Tax

822

772

6%

Cost to Income (CTI)

47.6%

49.6%

—

Staff (FTE)

8,923

8,788

2%

EARNINGS BY BUSINESS
33% The National Bank Retail
23% ANZ Retail
22% Corporate andCommercial Banking
12% Rural Banking
6% Private Banking andRetail Specialist Units
4% UDC10

Our strategy is yielding good results. Profit was
up 6% on 2006 with stable or growing market
share in most segments of the business andcustomer satisfaction maintained at very highlevels. As well the number of bank customers
who either use or would consider using either of
our two main brands (our total customer reach)has risen from 53% to 55% over the past year
(ACNielsen Consumer Finance Monitor).
ANZ National Bank was the 2007 INFINZ Bankof the Year, and retained its position as theBusiness Finance Monitor’s2 Number One Bankfor rural agri-business customers.
While there are some uncertainties in the
New Zealand economy, overall the banking
environment there remains conducive toreasonable earnings growth.
1 Provision for Credit Impairment
2 Source: TNS Conversa BFM, 2007 Calculated Main Bank Share

We have established partnerships throughinvestments in banks with established local
franchises, to which we bring our specialist

Our wealth management businesses andinvestments are also performing well. INGA has
achieved very strong funds under management
growth, is the market leader in new retail life
risk business and has overcome its historical
remediation issues. INGA is focused on growth,and earnings are up 27%.
The Private Bank earnings growth increased
by 16%, which continues the strong franchise
growth of our private banking business bothin Australia and New Zealand as well asinternationally.
Our financial performance
($m)

2007

2006

%

Income

422

315

34%

Operating Expenses

(123)

(95)

29%

Profit before Provisions

299

220

36%

Provisions1

(34)

(24)

42%

Tax

(18)

(12)

50%

Profit after Tax

247

184

34%

1,574

1,102

43%

Staff (FTE)
1 Provision for Credit Impairment

11

five year summary
2007

2006

2005

2004

2003

$m

$m

$m

$m

$m

aifrs

Strong lending growth, partly offset by lower interest margins

Previous AGAAP

Financia l Performance 3(4,340)(4,005)(3,228)

5,484

4,966

4,514

3,891

Provision for credit impairment

(567)

(407)

(565)

(632)

(614)

Income tax expense & miority interest(1,623)(1,490)(1,250)(1,151)(929)

Cash Profit

2,348

3,924

3,587

3,151

2,731

Non core items

256

101

-7

84

0

Profit after tax

4,180

3,688

3,144

2,815

2,348

Financial Position
Assets392,613334,640

300,885259,345

195,591

Net Assets

22,04819,906

19,53817,925

13,7871

Tier 1 capital ratio2

6.7%

6.8%

6.9%

6.9%

7.7%

Return on average ordinary equity3

19.6%

20.1%

19.0%

17.8%

20.6%

Return on average assets3

1.1%

1.1%

1.1%

1.1%

1.2%

Cost to income ratio4

44.8%

45.6%

46.6%

45.3%

45.1%

03
04

101c

95c

$19.02$17.17

Points of representation6

1,327

1,265

1,223

1,190

1,019

No. of employees (full time equivalents)

34,35332,25630,97628,755

23,137

No. of shareholders

327,703291,262

263,467

252,072

223,545

Other information

1 For the year 2004, consolidated assets
include the statutory funds of NBNZ Life
Insurance Limited. NBNZ Life Insurance
Limited was sold on 30 September 2005
2 Calculated in accordance with Australian
Prudential Regulation Authority

12

requirements effective at the relevant datebasis that is comparable with that of 2006
3 Excludes non-core items
5 2003 adjusted for the bonus elementsof the November 2003 Rights Issue
4 Excludes non-core items. Periods prior to2005 also exclude goodwill amortisation. The 6 Includes branches, offices, representative
2005 ratio has been calculated on an AIFRS
offices and agencies

03
04

04

05

Net interest margins continue to decline.
The headline decline was 12 bps, while
an underlying decline of 8 bps was slightly
better than expected.

06

07

Other Operating Income

3 ($m)

Series break due to AIFRSOther operating income was up strongly(20%), and benefited from growth in customer
numbers, higher revenue from financial
markets, along with an initial 5 months
contribution from ETRADE.

03
04

04

Total Revenue

05

06

11,067110c$24.0007

10,089125c$26.86

06

9,306

136c
$29.7005

8,519

Dividend
Share price5 –30 September

04

Series break due to AIFRS

7,119

27,31403
04

Net Interest Margin (%)

3,765

6.7%

34,586

3,146

17.0%

43,834

2,935

32.6%

49,33107

We continue to see strong lending growthacross Australia and New Zealand, withlending assets up 13%. Customer deposits
were also up a strong 17%.

3,267

17.1%

55,382

06

Series break due to AIFRS

2,808

15.6%

Market capitalisation

05

Net Loans and Advances
including Acceptances ($b)

Shareholder value– ordinary sh a re s
Total return to shareholders(share price movement plus dividends)

04

2.19

(4,605)

6,114

2.31

(4,953)

Profit before Provisions

2.40

Operating expenses

2.49

2,808

2.67

4,311

3,267

303.4

5,252

269.4

6,371
2,935

245.9

6,943
3,146

217.4

7,302
3,765

162.6

Net interest income
Other operating income

07

3 ($m)

Series break due to AIFRSOur Total Revenue grew by 10% in 2007, at
the top end of our target range of 7%–10%.
It is the highest level of revenue growth wehave achieved in recent years.

13

director and executive
remuneration 2007

five year summary Continued

Short-term
Employee
Post
Benefits Employment

04

05

06

6,114

03
04

5,484

07

4,966

3,891

06

4,514

(4,953)05(4,605)04(4,340)(4,005)(3,228)03
04

07

Profit Before Provisions1 ($m)

Expenses1 ($m)

Series break due to AIFRS

Series break due to AIFRS

Expenses were up 8%, with higher personnel
costs (up 8%) being the key driver, largely
due to ongoing investment in the business.

Our growth in Profit Before Provisions (PBP)
was 11%. By excluding the more volatile
credit provisions charge, PBP provides auseful measure of underlying performance.

04

05

06

4,180

03
04

3,688

07

3,175

06

2,348

(407)
05

2,815

(567)

(565)

(632)

(614)

04

$

$

$

$

C GoodeIndependent Non-Executive Director,
Chairman782,880

12,797–––

795,677

G Clark
Independent Non-Executive Director

228,362

12,797–––241,159

J EllisIndependent Non-Executive Director

233,992

12,797–––

246,789

D Gonski (retired 30 June 2007)
Independent Non-Executive Director

181,870

9,515

–

–

–

191,385

M Jackson
Independent Non-Executive Director

261,000

12,797–––273,797

I Macfarlane (appointed 16 February 2007)
Independent Non-Executive Director

146,470

8,854

–

–

–

155,324

D Meiklejohn
Independent Non-Executive Director

269,400

12,797–––282,197273,759

–

–

–

–

273,759

2,377,733

82,354––– 2,460,087

Director Remuner ation

1 Excludes non-core items

14

J McFarlane (retired 30 September 2007)
Chief Executive Officer – Executive
Director

5,296,471

417,975–

915,261

123,411 6,753,118

Total of all Directors

7,674,204

500,329–915,261

123,411 9,213,205

R EdgarSenior Managing Director

1,864,895

49,725

16,575–804,321 2,735,516

B Hartzer
Group Managing Director, Personal

2,308,195

61,42521,938–728,628 3,120,186

G Hodges
Chief Executive, ANZ National Bank Ltd

1,856,600–

30,550–646,234 2,533,384

P Hodgson1
Group Managing Director, Institutional

1,668,076

50,544

52,121–

543,489 2,314,230

P Marriott
Chief Financial Officer

1,989,045

55,57525,533–

707,603 2,777,756

70,770–––24,763

Cur ren t Executive s

07

Profit After Tax ($m)
Series break due to AIFRS

Series break due to AIFRS

Better known as our bad and doubtful debt
expense, these increased by 39% this year
to a more normal level, following the smaller
than expected charge in 2006.

Total

$

Total Non Executive Directors

03
04

Termination Share Based
Benefits
Payments$

J Morschel
Independent Non-Executive Director

Provision for Credit
Impairment ($m)

Long Term
Employee
Benefits

Our profit of $4,180m is a new recordfor ANZ.

A Thursby2
Group Managing Director, Asia Pacific

95,533

1 Commenced 7/6/2007, previously Chief Risk Officer
2 Commenced 3/9/200715

our people

our customers

Leading and inspiring our people

Putting our customers first

ANZ’s focus on developing its People and Culture has created the most engaged banking
workforce in Australia and New Zealand and a strategic advantage that is difficult forothers to replicate.

ANZ is leading the way in providing convenient, simple
and responsible banking products and services for ourcustomers. We now have the most satisfied Retail andInstitutional customers of all major banks in Australia.

Our Lost Time Injury Frequency (LTIFR) rate decreased by 21% from 3.8 to 3.0 in Australia.
In New Zealand, LTIFR went from 3.6 to 1.6, a 56% reduction. LTIFR is a standard measure to
determine the effectiveness of our Occupational Health and Safety programs.

Our retail customer satisfaction at 77.2% continues to lead our major bank peers in Australia
according to the Roy Morgan Finance Monitor.
ANZ continues to perform strongly in the large corporate and institutional banking market inAustralia and New Zealand. ANZ maintained or gained leadership in 11 measures including
No. 1 Most Trusted Adviser according to research of Treasurers and CFOs conducted byPeter Lee Associates.

Our people are more motivated than ever to deliver their best for ANZ. 87% of staff participated in
our annual Engagement and Culture survey. Employee Engagement increased from 60% to 64%,
well ahead of the Australiasian financial services sector benchmark of 58%.
The percentage of females in executive positions increased from 20% in September 2006 to
22% at the end of September 2007, however we did not achieve our target of 24%.

We met or exceeded the majority of commitments in our Customer Charter which focuses
on delivering convenient, simple and responsible products and services to our retail customers.
Highlights included increasing our branch and ATM network by 39 and 400 respectively, andintroducing new measures to reduce the burden of penalty fees on low-income earners.

We have employed 35 Indigenous School Based Trainees including 8 in metropolitan Sydney
and the remainder in rural New South Wales and Western Australia. We also announced significant
Indigenous employment targets as part of our Reconciliation Action Plan.

This year, banking research agency, CANNEX, and Money Magazine recognised ANZ as the“Bank of the Year” and “Socially Responsible Bank of the Year”.

ANZ was recognised as an Employer of Choice for Women by EOWA for the sixth consecutive year.

2008 CUSTOMER goals

2008 people goals
64

16

Meet or exceed the performance standards
in our Customer Charter

Hewitt Best
Employers Study
ANZ Engagement andCulture Survey

Improve our performance on the ANZEngagement and Culture survey
Employ 100 Indigenous Australians, aspart of our Indigenous Employment strategy

Continue to improve customer satisfaction
amongst retail and institutional customers

60

63

53

Reduce our Lost Time Injury Frequency Rate
(LTIFR) by a further 20% in Australia and
New Zealand.

60

Achieve our targets for Women in
Management

Introduce policies to guide our business
lending decisions in the forestry, water,energy and mining sectors

Financial Services
Benchmark

02
04

04

05

06

07

A NZ EMPLOYEE ENGAGEMENT

1

Source: Roy Morgan Research – Aust MFI Pop’n aged 14+, %Satisfied (Very or Fairly Satisfied), 6 mth moving average

85
80
75
70
65
60

ANZ
Closest
major
peer

55

Peer
banks
Regional
banks

50

04SEP 96

SEP 07CUSTOMER SATISFACTION %1

17

Earning Community
Trust

our community
Managing environment impact
and supply chain

ANZ has made a long-term commitment to improving the financial literacy of some of
the most disadvantaged people in society. This year our financial literacy programs
were again recognised with another Prime Minister’s Award for Excellence in Community
Business Partnerships.
Our Saver Plus matched savings and financial literacy program is now running in 19 locations with
1,385 new participants this year. Independent research shows that 75% of participants from thepilot continue to save the same amount or more one or two years after completing the program.
More than 22,000 people participated in our MoneyMinded financial education program this year.
An additional 1,040 facilitators were trained to deliver MoneyMinded throughout Australia.
This year, 27% of all ANZ staff contributed a total of 73,098 hours of volunteering activity as partof our ANZ Volunteers program.
15% of Australian and 11.6% of New Zealand employees participated in our workplace giving
programs. Their contributions, along with ANZ matching funds, totalled $1,108,733 in donations
for more than 100 community organisations.
We completed the pilot of our loans program for low-income earners. 165 Progress Loans totalling$288,260 were written with a 67% approval rate. The average loan size was $1,796.

2008 community goals

Enable 1,500 people to participate in
Saver Plus, reach 30,000 people throughMoneyMinded and achieve 300 Progress
Loans participants
Achieve 70,000 hours of staff volunteering
across the Group and 15% participationin payroll giving
Achieve the commitments in our
Reconciliation Action Plan

18

ANZ’s Community Investment
Types of Contributions
Cash
Time (volunteering)$10,737,964$3,335,940

In-kind$2,443,766

Management costs$1,292,417

Total contributions*$17,810,087

our Environment

ANZ is focused on minimising its environmental footprint and has committed to become
Carbon Neutral in Australia and New Zealand by the end of 2009.

We met or exceeded our 5% reduction target on greenhouse gas emissions, electricity, paper
comsumption and waste. We did not meet our water reduction target.
New detailed sustainable sourcing standards covering office paper and printed materials wereintroduced to support our Sustainable Procurement Policy. The standards help us to ensure
environmental and social considerations are taken into account in our purchasing decisions.
170 suppliers have completed our supplier self-assessment tool (an increase of 70 fromthe previous year) and 90% of tenders for ANZ goods and services have included sustainability
criteria.
Since we adopted the Equator Principles in December 2006, we have reviewed 26 projects forsocial and environmental impact under the Principles and financed 16. Projects did not proceed
for a range of reasons, including their inability to meet the Principles. Equator Principles training
has been provided to 50% of our Project Finance staff.

2008 –2009 environment goals

Performance on our two-year goals

Achieve a 5% reduction per FTE inelectricity and water consumption

ElectricitysPaper		s

Achieve a 10% reduction per FTE inpaper purchasing & waste to landfill

Water		

6

Waste and recyclings

Become Carbon Neutral in Australia
and New Zealand by the end of 2009

Greenhouse gas emissionss

Key: Favourable
Unfavourables

6*Calculated using the London Benchmarking Group model for corporate
community investment.

19

board of directors 2007

The Board is responsible
to shareholders for thegovernance of ANZ, andoversees ANZ’s operations
and financial performance.
It sets the strategic direction
and financial objectives,
determines the appropriate
risk appetite for theorganisation, and monitors
operational performance.

Mr C B Goode, AC

Mr M R P Smith, OBE

Dr G J Clark

Mr J K Ellis

Mr I J Macfarlane, AC

BCom (Hons), MBA, Hon LLD (Melb),
Hon LLD (Monash)

BSc (Hons)

BSc (Hons), PhD, FAPS, FTSE

Chief Executive Officer, Executive Director
since 1 October 2007
Skills, experience and expertise
Mr Smith is an international banker with
29 years experience in banking operationsin Asia, Australia and internationally.
Until June 2007, he was President andChief Executive Officer, The Hongkong
and Shanghai Banking Corporation
Limited, Chairman, Hang Seng Bank
Limited, Global Head of Commercial
Banking for the HSBC Group and Chairman,
HSBC Bank Malaysia Berhad.
Mr Smith joined the HSBC Group in 1978and during his international career he has
held a wide variety of roles in Commercial,
Institutional and Investment Banking,
Planning and Strategy, Operations andGeneral Management.
Age 51 Residence Melbourne.

Independent Non-Executive Director,
Chairman of the Technology Committee
Non-executive director since February
2004. Dr Clark is a member of theGovernance Committee.
Skills, experience and expertise
Dr Clark is Principal of Clark CapitalPartners, a US based firm that advises
internationally on technology and thetechnology market place. Previously
he held senior executive positionsin IBM, News Corporation, and Loral
Space and Communications. He brings
to the Board international businessexperience and a distinguished careerin micro-electronics, computing andcommunications.
Age 64 Residence Based in New York,
United States of America but also
resides in Sydney.

MA, FAICD, Hon FIE AUST, FAus IMM,
FTSE, Hon DR ENG (CQU)

BEc (Hons), MEc, Hon DSc (Syd), Hon DCom
(Melb), Hon DLitt (Macq), Hon LLD (Monash)

Independent Non-Executive Director
Non-executive director since October
1995. Mr Ellis is a member of the
Audit Committee and the Technology
Committee.
Skills, experience and expertise
Mr Ellis brings to the Board hisanalytical skills together with hispractical understanding of operational
issues, investments and acquisitions
arising from his involvement acrossa range of sectors including natural
resources, manufacturing,biotechnology and education.
Age 70 Residence Melbourne.

Independent Non-Executive Director,
Chairman of the Governance Committee
Non-executive director since February
2007. Mr Macfarlane is a member of the
Risk Committee and the Technology
Committee.
Skills, experience and expertise
During his 28 year career at the Reserve
Bank of Australia including a 10 year
term as Governor, Mr Macfarlane madea significant contribution to economic
policy in Australia and internationally.
He has a deep understanding offinancial markets as well as a long
involvement with Asia.
Age 61 Residence Sydney.

Chairman, Independent
Non-Executive Director
Non-executive director since July 1991.
Mr Goode was appointed Chairman
in August 1995 and is an ex officio
member of all Board Committees.
Skills, experience and expertise
Mr Goode has a background in thefinance and resources industries andhas been a professional non-executive
director since 1989. Mr Goode brings
a wide range of skills and significant
experience of the finance industry to
his role as Chairman of the Board.
Age 69 Residence Melbourne.

Ms M A Jackson, AC
BEc, MBA, Hon LLD (Monash), FAICD, FCA

Mr D E Meiklejohn

Independent Non-Executive Director,
Chairman of the People Committee
Non-executive director since March
1994. Ms Jackson is a member of the
Audit Committee.
Skills, experience and expertise
A Chartered Accountant, with significant
financial expertise, Ms Jackson has
broad industrial and commercial
experience including her involvementin transportation, mining, the media,
manufacturing and insurance. This
expertise coupled with her work inhealth and education contribute to
her role on the Board.
Age 54 Residence Melbourne.

BCom, DipEd, FCPA, FAICD, FAIM

Independent Non-Executive Director,
Chairman of the Audit Committee
Non-executive director since October
2004. Mr Meiklejohn is a member of
the Governance Committee and the
Risk Committee.
Skills, experience and expertise
Mr Meiklejohn has a strong backgroundin finance and accounting. He also
brings to the Board his experience
across a number of directorships ofmajor Australian companies spanninga range of industries.
Age 65 Residence Melbourne.

Mr J P Morschel
DipQS, FAIM

From left to right: Mr D E Meiklejohn,
Mr J P Morschel, Ms M A Jackson, Mr J K Ellis,
Mr C B Goode, Dr G J Clark, Mr M R P Smith
and Mr I J Macfarlane

Independent Non-Executive Director,
Chairman of the Risk Committee
Non-executive director since October
2004. Mr Morschel is a member of thePeople Committee.
Skills, experience and expertise
Mr Morschel has a strong backgroundin banking, financial services andproperty and brings the experience ofbeing a Chairman and Director of major
Australian and international companies.
Age 64 Residence Sydney.
21

Handy Contacts

Important Dates For Shareholders*

ANZ

Date

Event

Company Secretary’s
Level 6
100 Queen Street
Melbourne VIC 3000
Australia
Telephone +613 9273 6141
Facsimile +613 9273 6142
Company Secretary: Bob Santamaria

18 December 2007

Annual General Meeting – Perth21 December 2007

Final Dividend Payment

23 April 2008

Interim Results Announcement

09 May 2008

Interim Dividend Ex-Date

15 May 2008

Interim Dividend Record Date

01 July 2008

Interim Dividend Payment Date

23 October 2008

Annual Results Announcement

06 November 2008

Final Dividend Ex-Date

12 November 2008

Final Dividend Record Date

18 December 2008

Final Dividend Payment Date

18 December 2008

Annual General Meeting –Brisbane

Investor Relations
Level 22
100 Queen Street
Melbourne VIC 3000
Australia
Telephone +613 9273 6466Facsimile +613 9273 4899
investor.relations@anz.com* If there are any changes to these dates, the Australian Securities
Exchange will be notified accordingly.

Share Registry
Australia
GPO Box 2975
Melbourne VIC 3001
Australia
Telephone 1800 11 33 99 / +613 9415 4010
Facsimile +613 9473 2500
anzshareregistry@computershare.com.au
New Zealand
Private Bag 92119
Auckland 1020
New Zealand
Telephone 0800 174 007
Facsimile +649 488 8787
United Kingdom
PO Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
Telephone +44 870 702 0000
Facsimile +44 870 703 6101

Australia and New Zealand Banking Group Limited
www.anz.com ABN 11 005 357 522
22