ANZ Delivering for Shareholders Presentation to CLSA Investors

ANZ Delivering for Shareholders Presentation to CLSA Investors’ Forum 2000 John Mc. Farlane, Chief Executive Officer 16 May 2000

ANZ One of the ‘Big Four” Australian banks. Provider of full range of financial services in Australia (since 1835) and New Zealand (since 1840) with leadership in Corporate Banking, Credit Cards and Trade, an emerging strong e-Commerce position and an offshore network in Asia and Pacific (Grindlays sale announced 27 April). m Assets $167 b m Market Cap $17. 5 b m Profit Staff ANZ m. Headquarters 100 Queen Street Melbourne (first half 00) 28, 940 $817 m

ANZ Delivers on Financial Commitments March 2000 Results m Double-digit earnings growth 14%. EPS 10% m Increase ROE towards 20% 17. 8% (17. 3%) m 53% cost income ratio 51. 4% Costs flat m Reduce risk Grindlays Matches peers ex m Achieve an optimal capital structure completed announced $500 m buyback $1 bn buyback

Financial Performance ¢ EPS % % Tier 1 Ratio % Lending Mix ROE % Cost Income Ratio Mortgages Emerging Markets NAB WBC CBA ANZ

Business Unit Performance Other 8% A$ International 9% Corporate 38% Personal 45%

Change in Profit Other Income Other Fee Growth 17 $m 850 800 Sale of Strategic Investments 33 Property Lending Fee Net Interest 20 Income 34 764 750 700 30 Revaluation 30 Doubtful Debts Costs (4) (9) 817 Tax (34) Restatement of Deferred Tax Balance (64) Significant one off items (1) 650 600 Second Half 1999 First Half 2000

Improving Asset Quality General Provision Non Accrual Loans $ m $ 2000 m 762 1500 886 Foreign Exchange Impact 1000 444 Surplus 944 (197) 500 657 428 1436 Net ELP Transfer Charg to e Specific 256 Provision 871 900 (18) 1395 554 0 1997 1998 Net Non Accrual Loans 1999 1 H 00 Specific Provisions Sep 99 Mar 00 APRA Guidelin es Minimu m

Capital Management a Priority % Ratios m m m Inner Tier 1 Hybrid Tier 1 Net Tier 2 Capital management objective ã Increase ROE ã Maintain AA status Targets ã Tier 1 6. 5 - 7. 0% ã Inner Tier 1 6. 0% - 6. 5% Reducing excess ã $500 m buyback completed ã $1 bn buyback in process

Good Progress on Business Strategies Business Strategy m Accelerate growth in Personal m Build on strength in Corporate m Simplify and focus International m Build leadership in e. Commerce Outcomes Mortgage & cards share up Personal 45% of group profit FM challenging, new team Leadership position enhanced ROA 0. 9% (0. 7%) Non accruals 0. 4% (0. 9%) Grindlays sale Latin America Offices closed Asia-Pacific e. Commerce focus Approaching leadership B 2 C Strong portfolio B 2 B

Momentum in Personal % Share of Housing Lending % Internet Banking Registrations 1998 1999 2000 Share of Credit Card Spend Internet Banking Users as % of Main Relationships Source: Ord Minnett and Roy Morgan Research

Leadership in Corporate Business Banking Relationships Australian Market Share 1999 (%) Customer Perception of Service Delivery 1999 (out of 10) m Pre-eminent Corporate Bank in Australia and New Zealand in terms of relationships and customer satisfaction m Leader in Treasury Products (FX, Risk Management) m Esanda/UDC No 1 Finance Company in Australia and New Zealand m Leading Structured Finance Specialist in Asia m No 1 in Trade in Australia

Sale of Grindlays m Price US$1. 3 (A$2. 2)bn – Net Asset Value US$590 (A$990)m – Goodwill US$750 ($A 1, 250)m m Dividends $US 0. 5 (A$0. 9) billion from Grindlays retained earnings m Price multiples (excluding dividend) – 2. 3 times net asset value, 14. 2 times annualised first half 2000 earnings m Cooperation Agreement with SCB to service ANZ customers m Final consideration subject to Net Asset Value at completion m Customary representations and warranties m Indemnity regarding litigation matters including NHB

ANZ Profile Group Growth Grindlays m Assets m Profit m Staff 28, 940 -1231 5400 m Representation 39 14 ANZ Headquarters 100 Queen Street Melbourne $167 b $14 b $10 b $817 m $53 m $79 m

Delivering via the Web B 2 C B 2 B Identrus FX On-line (ANZ On-Line) Transformation operations. com Employee PCs E-Procurement Directors on line Sales & Service Platform ERP Enterprise Resource Planning

Strategic Imperatives Accelerate the growth program across 3 horizons Radical transformation of the business Improve sustainability of core franchises

Strategic Imperatives Accelerate the growth program across 3 horizons m Reallocate investment towards current traditional growth opportunities m Build substantial portfolio of e-products and businesses m Build semi-global niche positions in trade, FX, structured finance, cards and e-Commerce m Rapidly roll-out e-Commerce investments in Asia

Strategic Imperatives Accelerate the growth program across 3 horizons Radical transformation of the business m Revolutionise cost base to compete with new economy competitors m Embrace web technology to achieve seamless integration m Become a customer-centric company by organising around different customer segments m Build culture and talent to compete in the new economy

Strategic Imperatives Accelerate the growth program across 3 horizons Radical transformation of the business Improve sustainability of core franchises m Continue to expand leadership in Corporate m Complete domestic Personal footprint – organically – infill acquisitions m Address retail funds management strategic position m Medium-term search for transformational moves m Improve capacity to participate in industry

Financial Goals Going forward m Earnings per share growth that outperforms the average of our peer banks m Increase Return on Equity: Target 20% m Cost income ratio comfortably below 50% m Inner Tier 1 ratio approaching 6% m Maintenance of credit rating in AA category

Copy of Presentation available on www. anz. com

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 of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. For further information visit www. anz. com or contact David Ward General Manager Office of the Chief Executive ph: (613) 9273 4185 fax: (613) 9273 4091 email: david. ward@anz. com