1. Small to Medium Business Graham Hodges Managing Director Australia and New Zealand Banking Group Limited 24 August 2001

2. Page 2 The business today Financial performance Conservative risk management Re-building our capabilities Growth agenda Goals for Small to Medium Business A revitalized business with significant upside

3. Page 3 Small to Medium Business Metro-based business customers with turnover up to $10m All customers relationship managed 35,000 customers in Australia & New Zealand Responsible for end-to-end delivery - Operations centre- e commerce channels - Centralised credit function- product management Balance sheet management (assets & liabilities) Matching customer value with cost to serve

4. Page 4 Financial performance is strengthening Mar-00Sep-00Mar-01 Cost Income % Mar-00Sep-00Mar-01 FTE Profit After Tax Mar-00Sep-00Mar-01 $m Operating Income $m Mar-00 Sep-00 Mar-01

5. Page 5 Risk profile and management stance remains conservative High risk loans are 2% of book Of the 5.6% of the book rated B+ or lower, only 1% < fully secured Over 80% of our total lending is fully secured Behavioural scoring model used to identify early signs of risk deterioration % of book June 2001

6. Page 6 Leading indicators of potential credit issues are stable 0.00 0.05 0.10 0.15 0.20 0.25 Aug-00Oct-00Dec-00Feb-01Apr-01Jun-01 % of portfolio in excess 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 % of loan portfolio in arrears Excesses (>30 Days)Loans in arrears (>30 Days) Some evidence of cash flow strains in early 2001 Contributors included: Economy slowing Tax payable from 1999/2000 PAYG / BAS

7. Page 7 Weak market position highlights our considerable opportunity Source: Greenwich Associates 2000 Lack of strategic focus has resulted in: Manual front-line and operations processes Over-engineered credit process Inadequate business MIS Insufficient investment in staff Insufficient customer focus Revenue Opportunity Current revenue Increase in mkt share Increase Share of wallet Revenue Market Share 0 20 40 60 80 Share of LendingShare of DepositsShare of Wallet % ANZCBANABWBC

8. Page 8 Re-positioning well underway Beneficiary of specialist business strategy Re-defined our customer propositions E-transforming business processes Delivered critical management MIS (NIACC – EVA based customer profitability) Simplified credit processes Shift in “mind-set” underway Primarily customer focussed Outcome Clarity Capability Confidence = Performance

9. Page 9 STP origination & a/c mgt Behavioural credit scoring ANZ Impact Runningmy business Business productivity Customer experience Business growth eTransformation needed to achieve both cost to serve and customer advocacy Distinctive Key Projects Objective

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11. Page 11 Using this foundation to accelerate growth Total profit pool Primary market share Small Large Low High WA metro QLD metro NSW metro SA metro VIC metro Key geographic opportunities VALUE Build a distinctive service proposition Industry sector specialisation Bolt on business services Increase footprint Increase share of wallet Sept 02 Sept 03 Sept 04 TIME Sept 01 $10m new investment in growth initiatives Phasing spend to maintain profit momentum Focus in 2001/02 will be on footprint, SoW & specialisation

12. Page 12 Why we will succeed Specialist business model works Getting the basics right Successful role model (within ANZ) to help us Customers are receptive to a distinctive relationship proposition Strong leadership and team with management disciplines in place

13. Page 13 Summary We are revitalizing the business Key planks for early and on- going success are in place We are committing new investment to hasten growth in customer numbers and share of wallet Focus on a distinctive customer proposition will drive new revenues and higher customer value Goals Average earnings growth of 15%+ to 2005  Profit growth less in 2001/2 given investment Lift customer and staff satisfaction to 80% level (2004) Performing loans remain at 99%+ of total book