2022
INVESTMENT SPEND & CAPITALISED SOFTWARE - OVERVIEWMARCH 2022

DISCLAIMER & IMPORTANT NOTICE

The material in this presentation is general background information about ANZ’s activities current as 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 and should not be relied upon as advice to investors or potential
investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered,with or without professional advice when deciding if an investment is appropriate.
This presentation may contain forward-looking statements or opinions including statements regarding our intent, belief or current expectations withrespect to ANZ’s business operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk
management practices. When used in this presentation, the words ‘forecast’, ‘estimate’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’,‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, as they relate to ANZ and its management, are intended to identify
forward-looking statements or opinions. Those statements: are usually predictive in character; or may be affected by inaccurate assumptions or
unknown risks and uncertainties; or may differ materially from results ultimately achieved. As such, these statements should not be relied upon when
making investment decisions. These statements only speak as at the date of publication and no representation is made as to their correctness on orafter this date. Forward-looking statements constitute “forward-looking statements” for the purposes of the United States 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 or circumstances after the date hereof to reflect the occurrence of unanticipated events.

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INVESTMENT SPEND CATEGORISATION

Investment Category

Definition

Regulatory, Compliance & Risk

Investments made to ensure ANZ is compliant with laws, regulations, relevant
industry codes and practices and to ensure ANZ continues to operate within its desiredrisk appetite.

Asset Lifecycle Management

Investments made to ensure ANZ is able to continue to operate its property andtechnology environments (including hardware and software) safely and reliably.

Productivity & Simplification

Investments made to reduce complexity in systems, processes, products and/or
improve our people’s ability to work efficiently and effectively.

GrowthInvestments made to expand (or maintain) market share, revenue, profit or otherbusiness performance metrics.

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EXTRACT FROM FY21 RESULTSPRESENTATION & INVESTORDISCUSSION PACKINVESTMENT SPENDCONTINUING OPERATIONSINVESTMENT SPEND1EXPENSED & CAPITALISED1$m$m

1,058

1,810

811
28%

752
21%

71%

72%

79%

1H20

2H20

1H21663
29%

339
1,474

1,171
341

349

197

79%

223

191
171
164

21%

245

Investment Expensed

2H21

Investment Capitalised

CAPITALISED SOFTWARE$m

226

2,893

159
113

2,202

812
564

361
FY19
Australia R&C and ANZx

FY20
FY21
Technology Infrastructure

New Zealand

Enablement, Property & Other

4.9

4.7

Sep 15

Sep 16

1,856

1,421

1,323

3.9

3.2

Sep 17

Sep 18

Capitalised software balance

2.7

1,039
2.79602.4

Sep 19Sep 20

Sep 21Avg amortisation period (yrs)Institutional
1.

Prior periods restated to reflect current management classification between BAU and Investment Expensed

3INVESTMENT SPEND – ALIGNED TO STRATEGIC PRIORITIESEXTRACT FROM FY21 RESULTSPRESENTATION & INVESTORDISCUSSION PACKCONTINUING OPERATIONS

1FY21$m INVESTMENT SPEND

FY21 INVESTMENT SPEND BY CATEGORY (EXAMPLES)

1,810

1,474

22%

Estimated shareof investment
spend in FY22~30%

18%
24%~30%GrowthProductivity & Simplification•ANZx•

Migration to Cloud•Sustainability•

Digital customer experience•

GoBiz•

Banker experience

•

1835i

•

Customer authentication•

Platforms•

Property rationalisation•

Automation

17%
Asset Lifecycle Management

54%

1.

~35%

47%

11%

7%

FY20

FY21

•

Application upgrades•

BS11 (RBNZ Outsourcing)•

Capacity & storage•

Benchmark Transition (‘IBOR’)•

Release management•

Home & business lendingprocesses•

Open Banking•

Cyber security~5%

Asset Lifecycle Management

Productivity & Simplification

Regulatory, Compliance & Risk

GrowthRegulatory, Compliance & Risk

Prior periods restated to reflect current management classification between BAU and Investment Expensed* This page may contain forward-looking statements or opinions. Please refer to ANZ’s Disclaimer and Important Notice with respect to such statements on page 14

CHART EXTRACT FROM FY21
RESULTS PRESENTATION &INVESTOR DISCUSSION PACKCAPITALISED SOFTWARECAPITALISED SOFTWARE
Software capitalisation occurs when specified costs of internal
software developments are recognised as having economic valuethat will extend into the future (i.e. will have future economicbenefit). Where certain criteria are met, the cost of softwaredevelopment can be taken up as an asset to be amortised overits useful life. Internal policy changes implemented since FY16$m

2,893

2,202

have increased the monetary thresholds for capitalisation,
resulting in the direct expensing of more project related costs.

1,856
1,421

Note that during the March 2016 half, the Board resolved toamend the application of the Group’s software capitalisation
policy by increasing the threshold for capitalisation of software

4.9

development costs to $20 million, reflecting the increasingly
shorter useful life of smaller items of software, and directly
expensing more project related costs. Further policy changes

Sep 15were implemented in FY18 and FY20.

Capitalised software balance

4.7

Sep 16

3.9

Sep 17

3.2

Sep 181,323

1,039960

2.7

2.7

2.4

Sep 19Sep 20

Sep 21

Avg amortisation period (yrs)5FURTHER INFORMATION

https://www.anz.com/shareholder/centre/
Equity Investors

Jill Campbell

Group General Manager
Investor Relations+61 3 8654 7749
+61 412 047 448
jill.campbell@anz.com

Cameron Davis

Executive Manager
Investor Relations+61 3 8654 7716+61 421 613 819
cameron.davis@anz.com

Harsh Vardhan

Senior Manager
Investor Relations+61 3 8655 0878
+61 466 848 027
harsh.vardhan@anz.com

Retail Investors

Debt Investors

Michelle Weerakoon

Scott Gifford

Manager
Shareholder Services & Events+61 3 8654 7682
+61 411 143 090
michelle.weerakoon@anz.com

Head of Debt
Investor Relations+61 3 8655 5683
+61 434 076 876
scott.gifford@anz.com

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