1. ANZ Strategy specialisation eTransformation performance and growth

2. Achieve superior financial performance –deliver double digit earnings growth –improve return on equity –reduce our cost income ratio to 53% Rebalance the portfolio –increase our business with Personal customers Enhance our leadership position in Corporate Banking Simplify and focus International Build momentum in eCommerce Reduce our risk profile Our commitments to shareholders three years ago

3. Focus leading to improved performance 1997 ROE16.9% NPAT$1,171m (5% increase) Share Price$9.92 (as at 15 Dec 1997) 2000 ROE18.3% NPAT$1,703m (15% increase) Share Price$14.37 (as at 14 Dec 2000) NPAT PFS CFS International 27% 50% 23% 49% 41% 10%

4. Perform and grow The performance drive of the past 3 years is an important part of our strategic journey Earn the right to grow Deliver performance Increase growth investments Build strong performance culture Out-execute competitors Rebalanced portfolio Developed growth opportunities Continued to perform Delivered: Stable costs Risk reduction Revenue growth Share value

5. ANZ’s new strategy A portfolio of specialist businesses An eBank with a human face Perform and Grow for shareholders

6. A strategy to build for the future Proposition Specialists will win over conglomerates Corporations need to embrace new technologies Value depends on performance and growth Strategy Reconfigure ANZ as a portfolio of 21 specialist businesses An e-Bank with a human face Drive results whilst investing in growth businesses Perform and Grow e-Transform Specialise Implications Specialist approach to customer and product businesses Transform the way we do business by using IP technology Meet expectations, fund growth by cost reduction

7. Old economy New global economy We are experiencing very profound change Mobility of capital Globalisation Internet

8. Incumbents’ historic advantages Privileged access to customers - barriers to entry Familiarity with local ways of doing business Vertical integration the best model Geographic protection from capital market... Neutralised in some/most cases Easier for new competitors to enter and for customers to switch Regional/global standards – local familiarity less important No need for integration – can be accomplished through alliances Global capital market rewards the strong and punishes the weak The basis of success is changing

9. Impact of new competitors Entry of US monolines into UK credit card market ~30% margin compression Net interest margin 5 0 10 15 20 9193959799 MBNA, Capital One %NIM Headline net interest margin Egg launched Halifax Lloyds/TSB Supermarkets Egg 9596979899 %NIM UK interest margins

10. Opportunity to skip consolidation stage USA EUROPE AUSTRALIA ASIA consolidation... and specialisation Fragmentation... to Leading to globalisation

11. ROE (%) Book Equity ($US) 0 20 50 ANZ Schwab NAB CBA Citigroup Bank of America Geographic incumbents MBNA Amex Lloyds TSB Macquarie WBC StGeorge Specialists are providing higher returns on equity Geographic integrators Global Mega players Specialists/ focused players 40 SCB Barclays BOS HSBC Mellon

12. e-Payments Gen Banking Corporate FM Mortgages GSF Esanda Wealth FX Institutional Different businesses, different strategies Low High Invest for rapid growth Defend position and return Grow selectively Create new businesses Optimise performance Identify new growth products ROE Market Growth Business size by NPAT Small Bus Cap Mkts Cards e-Asia GTS

13. Strategy reflects impact of globalisation and ANZ capabilities Mortgages Capital Markets Esanda Institutional Banking Impact of globalisation ANZ’s capability FX Mid Corporate GSF Custody Trade General Banking Small Business Cards B2C Now Later Not yet Less developed At parLocal leader Regionally distinctive Globally distinctive Soon Wealth Management Funds Management B2B

14. EPS growth % sacrifice EPS to build P/E sacrifice P/E to achieve EPS Aspiration - improve EPS and higher PE PE Ratio Aspiration is performance and growth Share price curves

15. New growth will be funded by cost initiatives 45 50 55 60 65 70 1997199819992000 NAB CBA WBC ANZ * * * estimate of market expectations for 2000 51.7 63.1 Actual earnings as a percentage of expected earnings Percent change in share price -20 -15 -10 -5 0 5 80859095100105110115 Cost to income ratio

16. The benefit of high growth expectations *Tobins ‘Q’ is a measure of the ratio of the market value of corporations to the replacement value of their tangible assets Source:McKinsey & Company Ratio of market value to asset replacement value of S&P 500 0 0.5 1.0 1.5 2.0 Mean Increased value of intangibles –Unique process –Knowledge –Brand –Reputation –Talent 1945 1995

17. Great jobs What motivates talented people? Compens- ation and lifestyle Great company Values and culture58 Well managed50 Company has exciting38 challenges Strong performance 29 Industry leader21 Many talented people20 Good at development17 Inspiring mission16 Fun with colleagues11 Job security 8 Great jobs Freedom and autonomy56 Job has exciting51 challenges Career advancement38 and growth Fit with boss I admire 29 Compensation and lifestyle Differentiated compensation29 High total compensation23 Geographical location19 Respect for lifestyle 14 Acceptable pace/stress 1 (% of top 200 executives surveyed rating factor absolutely essential) Source: McKinsey & Company

18. We need to align our values Personal Values ANZ Current Values Society Community Organisation Transformation Best practice Relationship Survival ANZ Desired Values

19. Longer term aspiration for ANZ Superior performance and growth for shareholders An experience which pleases our customers Challenging opportunities for talented people Behaviour that is respected by the community Superior performance and growth for shareholders An experience which pleases our customers Challenging opportunities for talented people Behaviour that is respected by the community A unique specialist financial services company that breaks new ground and delivers:

20. Goals going forward EPS growth above peer average (target 10+%) ROE over 20% Cost-income ratio comfortably in the 40’s Inner Tier 1: 6% Maintain AA category credit rating

21. Copy of presentation available on www.anz.com