CONNECTED 2013 SHAREHOLDER REVIEW » Kate Camerlengo Marketing Manager Unsecured Lending Melbourne, Australia » Patrick Zhu Market Manager North Asia, Transaction Banking Shanghai, China ABOUT this DOCUMent The 2013 Shareholder Review provides an overview of ANZ’s strategic direction and financial and non-financial performance for 2013. Our work promoting money management skills among disadvantaged groups remains our priority community investment focus. All information contained within this document is for the year ended 30 September 2013 unless otherwise stated. All figures are in Australian dollars unless otherwise stated. More inFORMation General information on ANZ can be obtained from our website: anz.com. Shareholders can visit our Shareholder Centre at shareholder.anz.com. ANZ Corporate Governance – Policies, Charters, Codes of Conduct and Ethics: Information regarding ANZ Corporate Governance – including information about the Board, Board-related charters, the Group Codes of Conduct and Ethics, the Conduct and Ethics Policy Framework (including Fraud Policy, Anti-Bribery and Anti-Corruption Policy, Whistle-blower Protection Policy, Equal Opportunity, Bullying and Harassment Policy, Health and Safety Policy), the ANZ Constitution, ANZ Shareholder Charter and other related items – can be accessed on the ANZ website: anz.com/governance. 2 | 2013 SHAREHOLDER REVIEW CONNECTED 2013 SHAREHOLDER REVIEW DIVIDEND A TOP INCREASED BY FOUR LISTED COMPANY % ANZ has been named as 13 the global banking sector leader in the 2013 Dow Jones A top four listed company Total dividend of 164c Sustainability Index (DJSI) for on ASX with over 468,000 per share, up 13% on 2012. the sixth time in seven years. shareholders. CONTENTS ANZ’s Global Brand ..................................................................................... 4 Global Wealth ............................................................................................. 18 Strategy & Performance ............................................................................ 5 Global Technology, Services & Operations .................................... 20 Financial & Non-Financial Performance ............................................. 6 2013 Non-Financial Performance Overview .................................. 22 Chairman’s Message ................................................................................... 8 Five Year Summary .................................................................................. 24 CEO’s Message............................................................................................. 10 Non-Executive Directors Remuneration ......................................... 26 Australia ........................................................................................................ 12 Remuneration Overview ........................................................................ 27 International & Institutional Banking ................................................. 14 Non-Statutory Remuneration .............................................................. 28 New Zealand ............................................................................................... 16 Contacts & Important Dates ................................................................ 30 CONTENTS | 3 Over the past three years, ANZ has Grand Slam of the Asia Pacific region – ContinUING built one of the region’s leading brands and a further 70 million viewers at the reflected in ANZ’s brand value increasing Shanghai Rolex Masters, of which ANZ to BUild ANZ’S by 72% to US$5.8 billion (Brand Finance is a Diamond Partner as part of a new GloBAL Brand Banking Top 500) and ANZ being named five year partnership. the most valued banking brand in ANZ’s sponsorship of the Shanghai Australia in 2013. Rolex Masters also extends to the ANZ This has been achieved through the Junior Tennis Program, a community introduction of an integrated and program which has enabled hundreds consistent brand communication platform of local children in Shanghai to learn across the region, the continued the great sport of tennis. success of ANZ’s distinctive advertising As we look to 2014, ANZ will continue program featuring Patrick Jane (Simon to develop its global brand campaign Baker) from the Mentalist and a renewed and we remain committed to delivering focus on leveraging major sponsorships on our brand promise of helping such as the Australian Open and Shanghai our customers, staff, shareholders and Rolex Masters. communities progress. £ In 2013, ANZ’s association with tennis saw » ABOVE: Shanghai Masters Junior Tennis Clinics it reach 300 million viewers worldwide during the Australian Open – the 4 | 2013 SHAREHOLDER REVIEW StrateGY and Goal ANZ is executing a focused strategy to Capital Market. Returns in our Asian retail PERForMance build the best connected, most respected business are improving, with a focus bank across the Asia Pacific region. on productivity, and building our deposit This goal is based on our belief that the base and our brand across the region. future of our home markets of Australia Our operations strategy is delivering and New Zealand are increasingly economies of scale, speed to market and linked to the fast growing region of Asia a stronger control environment, resulting through trade, capital and wealth flows. in lower unit costs, better quality and We also believe that people want a bank lower risk. More generally, our business that understands their specific needs, risk profile improved, with a continuing and increasingly can meet these needs in shift to investment-grade clients and more than one market through a variety shorter tenor Trade Finance, and greater of means. earnings diversification across products By building a 'super-regional' bank, and geographies. ANZ can better serve our customers and Finally, we focused on strengthening achieve superior financial returns over management depth and the alignment the longer term. between business, operations, support ANZ’s aspiration is to have 25 to 30% of and technology. ANZ Group profit after tax sourced from Asia Pacific, Europe and America, revenues PROGressinG by 2017. ANZ has made good progress We are committed to delivering above- towards this goal. peer earnings growth with strong capital and expense disciplines, targeting further AchieveMents productivity improvements over the In 2013, management continued to focus next three years while increasing return Our aim is to on balancing the need for investment on equity from current levels. to meet the needs of our customers and This will be achieved by strengthening be the best drive longer-term growth, and the need our position in Australia and New to generate attractive returns for our Zealand, growing in Asia and sharing connected, shareholders in the near-term. common technology, processes, We are building stronger positions in products and services that are designed our home markets of Australia and with our customers in mind. £ most New Zealand, led by solid market share gains in Australian Retail and Commercial, respected emerging productivity benefits from our program of simplification in New Zealand, and improved penetration bank across of Wealth products into our existing customer base. the Asia Our Institutional business in Asia is growing quickly, focused on the fast-growing cross-border trade and capital flows, with Pacific region. particular emphasis on regional treasury centres like Hong Kong and Singapore, and products like Cash Management, Trade, Foreign Exchange and Debt » ANZ Your World blog – yourworld.anz.com OUR VISION, OUR STRATEGY | 5 FINANCIAL HIGHLIGHTS 11% 11% 9% 10% 12% INCREASE INCREASE INCREASE INCREASE INCREASE 6,272 6,498 10,142 469.3 368.8 5,661 5,830 9,329 427.8 327.9 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 Group net profit Group net profit Group profit before Net loans Customer after tax $m after tax (cash#) $m provisions and tax and advances $b deposits $b (cash#) $m ACHIEVEMENTS » Delivered a record » Return on Equity » We achieved a disclosure cash profit of $6.5 billion, (cash#) 15.3%. score of 92 out of 100 ^ up 11% on 2012. Statutory » Named the global banking for our 2013 CDP climate profit also up 11%. sector leader in the 2013 change disclosure. » Fully Franked total Dow Jones Sustainability » Since 2010, we have dividend for FY13 to Index for the sixth time in been carbon neutral across 164 cents per share. seven years. our operations. » Total Shareholder Return of 31.5%. ONE OF THE We are a member of: We actively STRONG participate in: CAPITAL LA20RGEST BANKS POSITION GLOBALLY One of the 20 largest Common Equity banks globally by Tier 1 ratio of 8.5%* market capitalisation. # Statutory profit has been adjusted to exclude non-core items to arrive at cash profit and has been provided to assist readers to understand the results for the ongoing business activities of the Group. ^ CDP was formerly known as the Carbon Disclosure Project. * Measured under APRA Basel 3 prudential capital standards. 6 | 2013 SHAREHOLDER REVIEW NON-Financial hiGhliGhts » Employee engagement » $65.1 million contributed » An estimated 240,000 increased to 72%, from 70%. to communities people have now » 38.7% women in ($15.1 million in direct benefitted from ANZ’s management. community investment financial education 1 » Over 89,000 hours and at least $50 million program, MoneyMinded. volunteered by employees, through foregone revenue). up from almost 87,000 » Over 47,000 employees in 2012. across 33 countries. ECONOMIC