Sale%20of%20Grindlays%20to

1
Sale of Grindlays to Standard CharteredAustrali
a and New Zealand Banking Group Limited27 April
2000
2
Announcement key points

• Sale price of US1.3 (A2.2) billion in cash
• In addition, ANZ receives dividends of US0.5
  (A0.9) billion from Grindlays retained earnings
• Sale (excluding dividends) equals 2.3 times book
  value and 14.2 times annualised first half 2000
  earnings
• Cooperation Agreement with Standard Chartered to
  service ANZ customers
• Buyback of A1 billion - one of the largest in
  Australia
• ANZ to focus on growth in Australia, New Zealand
  and Asia Pacific, with increased emphasis on
  e-commerce

3
Strategy - what we said May 99

• Re-balance business mix largely organically
• Focus on four strategic businesses
• accelerate growth in personal
• build on strong position in corporate
• simplify and focus International on Asia and the
  Pacific
• build leading presence in e-commerce
• Transform management process to ensure execution
  and delivery

4
Strategic logic

• Sale of Grindlays simplifies and focuses
  international in one move
• Strategically attractive for both organisations
• Advances strategic repositioning of International
• focus on Asia-Pacific
• ANZ continues to service core customers
• cooperation agreement with Standard Chartered on
  trade finance, project finance and corporate
  advisory in Middle East and South Asia
• global businesses in FX, capital markets, trade
  and project finance
• Rationale for Standard Chartered
• focus on emerging markets - now the leading
  international bank in the region
• synergies and growth opportunities

5
Transaction outcomes - countries

• Country representations included in the Standard
  Chartered transaction
• Bangladesh, India, Sri Lanka, Nepal, Pakistan,
  UAE, Qatar, Bahrain, Iran, Jordan, Israel, Greece
• Grindlays Private Banking operations in London,
  Jersey, Switzerland
• ANZ ongoing international presence
• 23 countries in Asia (11), Pacific (8), Europe
  (3) and America (1)

6
Key terms

• Sale price of US1.3 (A2.2) billion comprising
• Net Asset Value US590 (A990) million
• Goodwill US750 (A1,250) million
• Dividends of US0.5 (A0.9) billion from
  Grindlays retained earnings
• Key price multiples (excluding dividend)
• 2.3 times net asset value, 14.2 times annualised
  first half 2000 earnings
• Final consideration subject to Net Asset Value at
  completion
• Customary representations and warranties and
  indemnity regarding litigation matters including
  NHB
• Completion expected by 3Q 2000 subject to
  regulatory approval
• Buyback of A1 billion - one of the largest in
  Australia

7
ANZ - a relentless focus on value

• Clear direction for ANZ
• Core business portfolio repositioned, now strong
• Disciplined management
• value orientated
• radical transformation to release and build value
  
• capital management
• Renewed focus on growth and new economy

• Turning point for banks?
• Pressure to consolidate
• Funds Management focus
• Unprecedented change driven by new economy
• real risks for those who dont change fast
• new ways of winning

8
Appendix Financial details

• Customers/Clients 870,000
• Employees 5,400
• Branches (inc. Grindlays Private Bank) 114
• NPAT Year ended 30 September 1999 A149 million
• Half Year ended 31 March 2000 A79 million
• Assets Total External Assets A10 billion
• Risk Weighted Assets A8 billion

As at 31 March 2000
9
Summary

• Good outcome for shareholders
• Generates immediate value
• Simplifies and focuses international in one move
• Win-Win for both companies