9 November 2020 Market Announcements Office ASX Limited Level 4 20 Bridge Street SYDNEY NSW 2000 ANZ 2020 Annual Report Australia and New Zealand Banking Group Limited (ANZ) today released its 2020 Annual Report. It has been approved for distribution by ANZ’s Board of Directors. Yours faithfully Simon Pordage Company Secretary Australia and New Zealand Banking Group Limited Australia and New Zealand Banking Group Limited ABN 11 005 357 522 ANZ Centre Melbourne, Level 9A, 833 Collins Street, Docklands VIC 3008 2020 ANNUAL REPORT Overview How we Performance Remuneration Directors’ Financial Shareholder create value overview report report report information CUSTOMER STORY ADAPTING Growing business An ANZ customer for more than 50 years, fellahamilton has been during a crisis in the business of Australian women’s fashion since the early 1970s. Today, the company is managed by David Hamilton (son of the eponymous founder) and his wife, Sharon Hamilton, CEO. When the COVID-19 pandemic first hit Australia in March, times were challenging. Within the first few weeks of lockdowns, dentists and hospitals. We’ve hired back they had to let go of employees at their all of our staff and have never been busier,” Moorabbin factory and retail stores says Sharon. nationally were shut. David credits the move into making PPE However, shortly after, a doctor friend of to his wife’s optimistic nature and tendency Sharon’s asked her to make a scrub set, as to ‘think outside the box’. there was a limited supply of Personal “Changing direction wasn’t easy,” says David. Protective Equipment (PPE). “It needed us to have intestinal fortitude and Sharon recalls the moment demand for complete dedication to what we thought their washable, hospital-grade PPE started was the right move for our business.” snowballing and a new direction for the “The road ahead is going to be tough. business appeared in ‘fellahealthwear’. While we’re doing well at the moment, we “I’m a pharmacist by profession, with many are uncertain about what the future holds, friends in the medical industry. After the so we need to remain adaptable and agile first request, I received another, and another, in response to what may come next from the pandemic.” Photo credit: Simon Schluter, The Age and now we’re making and distributing thousands of scrubs and gowns to GPs, CONTENTS Overview 1 Our customers 18 2020 performance snapshot 1 Our divisions 25 Our 2020 reporting suite 2 Our people 28 What matters most 3 Our community 32 Chairman’s message 4 Our approach to climate change 34 CEO’s message 6 Governance 38 COVID-19 – protecting our customers, Risk management 49 employees and the community 8 Performance overview 54 How we create value 10 Remuneration report 74 About our business 10 Directors’ report 109 Our vision and strategy 11 Financial report 111 How we create value 12 Our operating environment 14 Shareholder information 234 Becoming a fairer and more responsible bank 16 Glossary 243 2020 performance snapshot 6.2% $9.08b Cash return funded and facilitated on equity1 in sustainable solutions since 2019 60c Dividend for 2020 per share 11. 3% Common equity Tier 1 Capital3 $3.8b Cash profit1 $20.04 Net tangible assets per share2 >61,000 people have been reached through our 132.7c $139.5m financial wellbeing in community programs, MoneyMinded Cash earnings investment4 and Saver Plus7 per share1 ~1. 8m 33.4% customer accounts of women remediated5 in leadership6 1. On a cash profit (continuing operations) basis. Excludes non-core items included in statutory profit and discontinued operations included in cash profit. It is provided to assist readers in understanding the result of the ongoing business activities of the Group. For further information on adjustments between statutory and cash profit refer to page 56. 2. Equals shareholders’ equity less preference share capital, goodwill, software and other intangible assets divided by the number of ordinary shares. 3. APRA Level 2. 4. Figure includes forgone revenue of $105 million, being the cost of providing low or fee free accounts to a range of customers such as government benefit recipients, not-for-profit organisations and students. 5. Refers to Australian customer accounts in the last 12 months. 6. Measures representation at the Senior Manager, Executive and Senior Executive levels. Includes all employees regardless of leave status but not contractors (who are included in Full Time Equivalents (FTE)). 7. Includes individuals who have participated in more than one program or product (for example, people who have participated in MoneyMinded as part of Saver Plus are counted twice as they are included in both the MoneyMinded and Saver Plus totals). ANZ 2020 Annual Report 1 Overview How we Performance Remuneration Directors’ Financial Shareholder create value overview report report report information Our 2020 reporting suite Integrated reporting Specifically, we will consider whether there are additional reporting frameworks or metrics we could use to enhance our This report includes information on our financial and non-financial disclosures. In this respect we are closely watching work underway performance, providing readers with a holistic view of the Australia by key sustainability disclosure bodies to develop a coherent and 1 and New Zealand Banking Group Limited’s performance. In comprehensive corporate reporting system in which existing preparing pages 1 to 72, we have again drawn on aspects of the sustainability standards and frameworks complement financial International Integrated Reporting Framework to describe how accounting principles. our business model, strategy, governance and risk management processes help us manage risks and opportunities in our operating Our 2020 Corporate Governance Statement discloses how we have environment and deliver value for our stakeholders. We outline our complied with the ASX Corporate Governance Council’s ‘Corporate response to external social and environmental challenges, including Governance Principles and Recommendations – 3rd edition’ and is how we are supporting our stakeholders through the COVID-19 available at anz.com/corporategovernance. pandemic, continuing to implement recommendations from the Our ESG Supplement complements this Annual Report, providing Royal Commission and strengthening our approach to climate stakeholders with more detailed ESG disclosures, including: change and human rights. performance against our ESG targets and approach to our priority areas of fair and responsible banking, financial wellbeing, Annual Report structure environmental sustainability and housing. In response to stakeholder The required elements of the Directors Report, including the feedback, for the first time, we are releasing our ESG Supplement Operating and Financial Review (OFR) as required by ASIC at the same time as this Annual Report. Regulatory Guide 247, are covered on pages 1 to 70. Commentary The following documents are available at on our performance overview contained on pages 54 to 71 anz.com/shareholder/centre: references information reported in the Financial Report pages 111 to 233. • News Release • Consolidated Financial Report, Dividend Announcement The Remuneration Report pages 74 to 108 and the Financial Report & Appendix 4E pages 111 to 233 have been audited by KPMG. KPMG also provides limited assurance over Environment, Social and Governance (ESG) • Results Presentation and Investor Discussion Pack content2 within this Annual Report. A copy of KPMG’s limited • Annual Review3 assurance report is contained in the ANZ 2020 ESG Supplement. • The Company Financial Report This report covers all ANZ operations worldwide over which, unless • Principal Risks and Uncertainties Disclosure otherwise stated, we have control for the financial year commencing • APS 330 Pillar III Disclosure on 1 October 2019 and ending 30 September 2020. Monetary • Climate-related Financial Disclosures amounts in this document are reported in Australian dollars, unless otherwise stated. We are continually seeking to improve our reporting suite and welcome feedback on this report. Please address any questions, Additional information comments or suggestions to [email protected]. We produce a suite of reports to meet the needs and requirements of a wide range of stakeholders, including shareholders, customers, employees, regulators, non-government organisations and the community. In 2021 we intend to review our disclosures to ensure they are meeting the evolving needs of our stakeholders. 2020 CLIMATE-RELATED 2020 CORPORATE 2020 ANNUAL REVIEW 2020 ESG SUPPLEMENT FINANCIAL DISCLOSURES GOVERNANCE STATEMENT anz.com/annualreport anz.com/cs anz.com/shareholder/centre anz.com/corporategovernance 1. Group: Australia and New Zealand Banking Group Limited (the Company) and the entities it controlled at the year end and from time to time during the financial year (together, the Group). 2. ESG content includes the following sections: 2020 performance snapshot, What matters most, COVID-19 – protecting our customers, employees and the community, Becoming a fairer and more responsible bank, Our customers, Our people, Our community, Our approach to climate change and ESG metrics on page 72. 3. The 2020 Annual Review is comprised of pages 1 to 72 and 241 to 242 of this Annual Report and a Remuneration Overview. 2 What matters most Through our annual materiality assessment we engage with internal and external stakeholders to inform our identification of ESG risks and opportunities. We seek to identify those issues