Michael Smith
Chief Executive
Chief Executive
OfficerOfficer

2007 Annual General MeetingViews on the global economy
Global economic growth
8%Forecasts

7%6%
5%
4%
3%2%
1%

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

1986

1984

1982

1980

1978

1976

1974

1972

1970

0%

Sources: IMF and Economics@ANZ . Note: GDP is measured in US$ at purchasing power parities

Major trends changing the world
for banks and financial institutions
Globalisation of capital

Consolidation

Convergence

Technology

Sustainability

Asia – an important driverof growth• Top 10 European banks on average
generate 11% of revenue from Asia
Pacific• HSBC, Standard Chartered, UBS andDeutsche Bank generate $41bn revenue
in Asia• In contrast, Australian banks generate~1% of revenue from Asia

Consolidation and convergence• Expect continued consolidationof financial services businesses• 700 European banks expected todisappear through mergers overthe next three years*• Increased competition and greater
reliance on technology*based on analysis from Deloitte Accounting and Consulting firm

Investing in people

ANZ has great people

The next stage• Greater selfconfidence• Develop andrecruit people
who want tobe the best

and a great cultureMy early impressions
Divisional level
PersonalInstitutional

New ZealandGreat shape

Strong franchise

Performing well

Share of wallet
opportunity

Under-performing
peers

Constrained bythe economy

Asia/Pacific
Largest exposureof Aus banks
High potential
Missedopportunities

Group level• Leadership strength• Great culture … but needs
more edge• Sights set too low• Systems a constraint• Issues with business mix

Overall impression: call to action• Aim higher• Drive growth and out-performance

Personal – Leading share of wallet

FromToStrong growth in new
customers

Maintain acquisition,
Deepen relationships“Product of themonth”

Needs based selling

Product focused

Segment prioritised
marketingIn the pack ontechnology

Clear leader in online
and sales tools

BelowStrongsystemprofitperformanceout-performance

Back to profit
systemContinued
outand beyond
performanceInstitutional – Back to system

FromToToo internally focused

Customer focused

Under-invested intechnology

Technology acritical enabler

Conservative Risk
approach

Double Markets revenue
Accelerate Asian growth

Below system
performance

Back to systemand beyondNew Zealand – Growing share,
sub 40% CTI
FromToDefending share,
repositioning ANZ

Customer acquisition,
targeted segments

Incremental cost
improvement

Drive cost to income
below 40%

Duplicate retailsystems

Single system

Stable performance inline with market

Sustainedout performanceAsia-Pacific – As big as NZ by 2012

FromToMaintaining ournetwork franchise

Deepening franchise,customer base &capabilities

Focus on Australia/NZ
linked customers

Broaden focus

Asia platform via
Partnerships

Focused on coregeographies

7 per cent of GroupNet Profit After Tax

As big as NZ by 2012(~20%)

Our journey to becoming a superregional bank
TRANSFORM
OUT PERFORMRESTORE• Quality on parwith global leaders• Institutionalin our market
back to system• Best of breed• Increasecustomerrevenue fasterexperience
than costs• In-fill mergers• Drive Asia profit
and acquisitionsin Asia• Capture existing
opportunities• Unlock the valueof our franchiseCreate aleading
Super Regionalbank

1 to 2 years

5+ years

2 to 5 years

Global quality,
regional focus

Growth based on four corecapabilities
FromToProduct based

Customer centric

Customer / Segment
focusedMarketing is forretailSales / Marketing
focusedCore skills foreveryoneTechnology aconstraintTechnology based

A core source ofadvantage

Meeting
expectations

Performance driven

Out-performingOur vision is for ANZ to be a superregional bankAustralia

NZAsiaPacific

Other

69% of all ANZ profit

22%7%2%~60% of all ANZ profit~20%~20%~2%Australia

NZAsia• Personal – grow share• Growshare• Organic
growthANZtodayANZ2012• Institutional – improve performance• Costsynergies(with infillacquisition)