1. International - Move to Growth Phase Elmer Funke Kupper Head of International Division 18 July 2000

2. International - Move to growth phase Last year, we presented a three year agenda to “Simplify and Focus” International. The first phase is nearing completion:  Implemented risk reduction program  Simplified positions and extracted value in one move  Freed up capital and management for growth agenda With the focus shifting to growth, new positions will be built in the Pacific and Asia:  In the Pacific, we will extend our leadership position to new geographies and continue to drive operational improvement  In Asia, following the crisis, we have small and lower risk positions. We will re-energise these positions and direct new investment towards eCommerce Implementation of the growth agenda will take two years, and a deal pipeline has been established

3. Risk reduction program largely completed * H2000 Impact Grindlays Sale on Risk ProfileSpecific Provisions International Assets in countries rated below ‘Single A’ ELP (%)1.581.381.13 48% 82% ANZ Post Completion Grindlays One Name $247m $299m 199819991H2000 $75m

4. Simplification completed in one move D D D D D D D D D M N N N N M N N D D D D D D D D D N M M M P M R R R Grindlays transaction: $10.2b assets, $79m 1H earnings Simplifies network in one move Extracts immediate value at 2.3 times NAV and 14.6 times earnings Completion on track for 3rd quarter 2000 Asia - Selective Investment Japan, Korea Trade, money centre Three Chinas 4 branches South East Asia Singapore, Indonesia, Philippines, Vietnam, Malaysia, Thailand Pacific – Extend leading position South Pacific well covered 41 branches 20-60%share

5. International - Move to growth phase Last year, we presented a three year agenda to “Simplify and Focus” International. The first phase is nearing completion:  Implemented risk reduction program  Simplified positions and extracted value in one move  Freed up capital and management for growth agenda With the focus shifting to growth, new positions will be built in the Pacific and Asia:  In the Pacific, we will extend our leadership position to new geographies and continue to drive operational improvement  In Asia, following the crisis, we have small and lower risk positions. We will re-energise these positions and direct new investment towards eCommerce Implementation of the growth agenda will take two years, and a deal pipeline has been established

6.  Build existing positions - Re-energise network points - Build Panin into top 5 retail bank  Invest in new growth - Target mass affluent as they get online - Partner to complement ANZ’s strengths in e-commerce and monoline businesses (eg cards) Two growth agendas Markets  Large in number, individually small  Modest growth  Highly concentrated – few players  Similar market/management models ANZ  Leading position in eight markets  Strong track record  NPAT 1H2000: $22m Pacific Asia Starting Position Markets  Individually large, more fragmented  Recovery under way  Emerging “mass affluent”  Rapid growth in online economy ANZ  Network positions in 11 countries  Early investment in Panin Bank  NPAT 1H2000: $15m Strategic Response  Replicate leading market positions - Organic growth or acquisition in new geographies - Rapid deployment of successful management model  Continue to drive operational improvement

7. Fiji Vanuatu Samoa Solomon Islands American Samoa Tonga Cook Islands PNG 1112221311122213 Leadership Positions Pacific: Consolidate existing leadership * First half annualised  Customer segmentation - Prime Banking in Fiji, PNG  Products - funds mgmt, insurance, asset finance  Electronic channels: ATMs, EFTPOS  Fee income automation Going forward  Continue to invest in new channels and products  Review opportunities to regionalise operations Continuous ImprovementResults (NPAT) 1999 2000* $37m $44m % Consumer Assets81% Liabilities80% NPAT85%

8. Impact of recent events in pacific Real GDP Growth NPAT contribution -10 -5 0 5 10 '90'92'94'96'98f00 Fiji Solomons Other Islands Fiji/ Solomon Lending Assets 2000 Profit After Tax H2000 54 32 46 68 100% = $766m$22m

9. Extending leadership to new markets

10. Size of the pacific opportunity

11. Asia: Dealt with the credit crisis as predicted New Non Accrual LoansNet Specific Provisions 19981999H2000 $277m $270m $101m Coverage (%) 86.067.270.0 One name 19981999H2000 $228m $118m $51m

12. Re-energise Asia Economic Recovery in RegionGrow the Business in Selected Areas Build Strategic Assets  Trade finance  Network customers  Relationship banks  Key project sectors Maintain Policy on Non-Strategic Assets  USD wholesale banking  Interbank lending  Participations ANZ represented in:  Japan  South Korea  China  Hong Kong  Taiwan  Singapore  Indonesia  Philippines  Thailand  Malaysia  Vietnam

13. Profile  Assets $2.6bn (Dec 1999 full year)  Pre provisions NPAT $107m  29% shareholding by ANZ  Currently number 8 Non-State Bank - 106 branches mainly in Jakarta/Java  New ATMs  Phone banking/National Call Centre  Refurbish branches  New branches in Jakarta Currency/Stock Market Remains Weak Indonesia: Patience in building position Panin Bank Going forward AUD20m investment in retail banking All Items Consumer Prices annual % change Food Inflation Improved Jakarta SE Composite Price Increase (RHS) Rupiah per USD Inserted Scale (LHS) Rupiah Index

14. Key to new Asia growth are mass affluent There is a largely untapped opportunity to provide financial services to the emerging mass affluent consumers eCommerce provides a more cost efficient and low risk way of targeting this potential – ANZ is a leader in eCommerce The need for speed, access to markets and risk sharing means that we need to combine the strengths of ANZ with those of others in the region We have joined forces with OCBC from Singapore to develop the regional business, which we expect to launch early 2001 The business model recognises the weaknesses of existing pure online propositions and includes specific responses to these

15. Taiwan Mass affluent market is emerging Adults in urban areas: Annual income over approx. US$10,000 Connected to the Internet Wired Emerging Affluent Thailand Malaysia Singapore China 3 Korea Indonesia Philippines Japan Hong Kong

16. Online use is taking off Internet Penetration of Households (%) GDP / Capita (USD '000) Singapore Japan Hong Kong Taiwan Malaysia Korea Internet Take-up Zone Based on US experience, B2C financial services takes off when internet penetration hits 10-20% Broking and Net Banking are the early ‘Killer Apps‘ Indonesia Vietnam Thailand Philippines China 0 5 10 15 20 25 010203040 Australia Implication: e-Commerce opportunities are starting to emerge in each country

17. Online customers are attractive 100 116 259 169 185 Average Deposit Balance Average Loan Balance Number of products Average Profitability Offline (= 100) Online Online customers cheaper to acquire (index)Online customer more attractive Source: ANZ customer base Offline Online 500 100

18. Pipeline under development Regional e-based financial institution + Internet Service Provider B2B and B2C Enabling Online Stockbroking Retail Alliances Leading Financial Portal Banking front end

19. OCBC/ANZ partnership makes sense June 2000 USDm Total Assets33,562 Market Capitalisation7,751 NPAT, Dec 1999 full year415 Market Share (Spore)17.9% OCBC Profile Complementary licences, strategic fit Both banks embrace the e-space at home Shared vision of opportunity across Asia Partnership Benefits CountryOCBCANZ China52 HongKong31 IndonesiaJVPanin Malaysia25 1 Rep. Office Philippines11 Singapore441 Taiwan11 Thailand1 1 Rep. Office Vietnam 1 Rep. Office 2 Korea11 Japan12

20. Leveraging ANZ’s strengths Credit Cards Consumer eCommerce Corporate eCommerce No. 1 in Australia Domestic partnership through Qantas Telstra Visa Card International partnership with Star TV Highest penetration of customers banking with anz.com Continuously expanding product suite, eg. eauto, pay anyone, my ANZ Key alliances - E*Trade, Freenet, MultiEmedia, Medweb Leader in electronic banking to corporates, ANZ Online, FX Online B2B solutions - eGate, eProcurement with MRO.com, corProcure Development of FX Online web based platform

21. International - Move to growth phase Last year, we presented a three year agenda to “Simplify and Focus” International. The first phase is nearing completion: – Implemented risk reduction program – Simplified positions and extracted value in one move – Freed up capital and management for growth agenda With the focus shifting to growth, new positions will be built in the Pacific and Asia: – In the Pacific, we will extend our leadership position to new geographies and continue to drive operational improvement – In Asia, following the crisis, we have small and lower risk positions. We will re-energise these positions and direct new investment towards eCommerce Implementation of the growth agenda will take two years, and a deal pipeline has been established

22. International program phasing Indian Mgmt Strengthened Strategic Review Completed/ Elmer Funke Appointed 6/99 Profit Decline Halted – Growth Visible Grindlays Transaction Announced Completion Grindlays Transaction 9/993/00 9/00 1/01 Profit Improvement Program Launched Complete “Simplify and Focus” Target Drive Growth Agenda:  Pacific new markets  Asia eGrowth eAsia Team Established Acquisition Amerika Samoa Bank Announced BOOM.COM Investment eCommerce Joint Venture with OCBC Announced Customer Launch OCBC Joint Venture Panin Bank Rights Issue Launch Internet Banking Indonesia JV Alliances Pacific new markets strategy

23. Complete ‘Simplify and Focus’Extend Pacific Leadership Re-energise existing positions  Network points  Panin Bank Invest in eGrowth  Target mass affluent  Partner to complement strengths Joint Venture announced Invest in Asian eGrowth Replicate leading market positions  Organic or acquisition  Deploy successful management model Continue to drive operational improvement Agenda defined and under way Implemented risk reduction program Simplified International positions in one move with Grindlays sale – completion on track Freed up capital and management Summary