1998 Final Results Presentation Analysts

1
Investor Relations on the Internet Conference 7
December 1999 Hong Kong
David Ward General Manager, Office of the Chief
Executive and Head of Investor Relations Australia
and New Zealand Banking Group Ltd
2
Investor Relations on the Internet

• Recap on IR objectives
• Making Use of the Internet - reducing the
  tyranny of distance
• Using the Internet - not just a Distribution
  channel
• Meeting objectives of Professional and Retail
  Investors
• Australian Environment

3
Creating Shareholder Value
Price/Earnings Multiple x Earnings Per Share
Share Price Appreciation Dividend Flow
Shareholder Value
Earnings Per Share x Payout Ratio
4
Creating Shareholder ValueDrivers of P/E Multiple
- Growth Profile (EPS) - Strategy - Management -
Quality of Earnings - Risk Management -
Franking - Market/Industry Valuations
Price/Earnings Multiple x Earnings Per Share
5
Creating Shareholder ValueDrivers of Payout Ratio
Earnings Per Share x Payout Ratio
- Capital Position - Growth Rate - Competitive
Yield - Franking
6
Investor Relations Function
Strategy p/e
Management p/e
Performance e
Investor
Relations
Function
Market Participants
Shareholder Value
7
Investor Relations Function

• Internet
• Point of contact ???
• Gatekeeper ?
• Co-ordinator ?
• Targeting Shareholders ??
• Spokesperson ?
• Assessment of Management ?
• Effective tool in managing and communicating
  message
• but assessment of management is important for
  market

8
Making Use of the Internet

• Reducing the tyranny of distance
• Instantaneous simultaneous access - capacity
  constraints?
• One stop information shop
• financial lodgement
• media releases
• Annual Reports
• presentation materials
• Communications via email rather than fax, mail,
  printed
• outward
• inward
• Key Issue Keeping it all up to date!

9
Using the Internet

• Company Information in drill down format
• Enquiry email off Web site
• Demonstration of e-Commerce capability
• Supplementary Information post analyst briefing
• Streaming of analyst briefings and AGMs
• Registry link for checking holdings etc
• Chat rooms?? Should be no different from media
  comment
• Key Issue Not getting carried away - remember
  technology is a tool!

10
Using the Internet to Target Shareholders

• Building a database of email addresses for
  material
• Access to database which can be interrogated (ie
  own and peer shareholdings from SEC 13F data)
• Blast emails with hot links
• Use of Web sites to assess Institutional Interest
  (supplement broker and consultant advice)

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Targeting Shareholder Groups

• Individuals
• Australia Yield Franking
• New Zealand Banking Exposure
• UK Ex Staff/Long Time Holders
• Staff Now tax effective
• Institutions
• Australia Index/Growth/Income
• Overseas Value/Growth/Income/Index
• Australian Exposure
• Global Bank Fund
• Asian Exposure

12
Australian Securities Investment Commission

• Guidance to companies on good disclosure
  practices
• Use current technology to improve investor
  access to your information. In particular, post
  significant information on your companys web
  site as soon as it is disclosed to the market.
• everything lodged at ASX
• roadshow presentations
• transcripts of analyst briefings
• significant background information from
  one-on-one meetings
• November 1999

13
Investor Relations Challenge
Fair valuation of companys equity through
elimination of information gaps and
uncertainty discounts
14
Investor Relations Challenge
Fair valuation of companys equity through
elimination of information gaps and
uncertainty discounts
Failure is more obvious than success!
15
Question Time
The material in this presentation is general
background information about the Banks
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 [phone],
email david.ward_at_anz.com