Global Structured Finance

Gordon BranstonHead of Global Structured Finance

Australia and New Zealand Banking Group Limited 20 July 2001

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Global capabilities in selected niche markets

• What we do?

• Financial performance

• Risk and portfolio management

• Leveraging core competencies and intellectual capital to drive growth

• Goals for Global Structured Finance

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GSF: integrated product delivery

• Project Finance

• Export Finance

• Corporate Finance

• Leasing & Tax Based Finance

• Islamic Finance

• Industrial Transportation

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150

170175

135140145150155160165170175180

Mar-00 Sep-00 Mar-01

Operating Income

69

8985

40

50

60

70

80

90

100Profit After Tax

Mar-00 Sep-00 Mar-01

777

802

886

670

720

770

820

870

920

46.5

44.0

48.0

42

43

44

45

46

47

48

49

The business continues to perform strongly

Mar-00 Sep-00 Mar-01 Mar-00 Sep-00 Mar-01

FTE Cost Income

23% Growth

17% Growth

$m $m

%

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It has developed into a robust high performing business

0

50

100

150

200

250

1997 1998 1999 2000

RevenueNPAT

Global Structured Finance$m Revenue -

CAGR 28%

NPAT - CAGR 35%

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Mining & Infrastructure

Islamic Finance

Power

Oil & Gas

Media/ Telco

Leasing & Tax Based Finance

Industrial Transportation

Export Finance

Corporate Finance

…with diversified income streams by product...

Revenue by product mix

Project Finance business

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Australia New Zealand

InternationalAmericas

…and by geography

Geographic Split

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We have a low risk profile & very low incidence of loss...

Risk Grade profile

• High concentration of AAA to BBB+ credits driven by sovereign (export credit agency) and multinational exposures

• Majority of Project Finance transactions in Developing Markets require balance sheet for Risk Grade BBB to BB

• Minimal exposure to Risk Grade BB-and below, with higher risk classification usually driven by geographic factors

5.0% 4.5%

12.3% 9.0%

12.6%14.7%

10.7% 11.0%

60.8%59.4%

Sep-2000 Mar-01

AAA to BBB+

BBB to BBB-

BB + to BB

BB-

> B

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…and portfolio duration is at attractive levels

Portfolio Maturity Profile

0

10

20

30

40

50

60

70

80

90

100

Contracted Expected

Assets %

63

1720

Construction Start up Operating

• With a high proportion of projects in start-up and operating phase, the portfolio is set to roll off aggressively

• After 2 years of operations, projects become candidates for refinancing

Project Lifecycle Profile

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Core Competencies

•Franchise•Clients•Debt Capabilities

Developed Competencies

•Project Advisory•Structuring Capability

•Sectoral Knowledge

•Regional Knowledge

•Brand Name

Acquired Competencies

•Distribution•Additional Sectoral Skills

•Additional Project Skills

•Corporate Finance advisory skills

Current CompetitiveAdvantage

Our core competency and competitive advantage have evolved over time…

1995

2001

•Sectoral Knowledge

•Structuring & advisory Skills

•Distribution capability

•Track Record•Market Reputation

•Established ‘Blue Chip’ Client base

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• Consolidate GSF’s position as a market leader in chosen niches

• Increase geographic coverage (developed and developing markets)

• Increase industry sector coverage

• Acquire teams to complement the current skill base

• Manage the balance sheet actively

…and we are leveraging these to drive growth…

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…and create breakout opportunities

Breakout

Grow

Perform

• Strengthen industry sector competencies

• Expand geographic focus for current industry sector specialisation

• Securitisation of assets to free up the balance sheet for new business

• Expand oil & gas and media/telco activities in developed markets

• Expand Singapore team to capitalise on regional recovery

• Cross-sell complex product to clients

• Develop our Corporate Finance and Acquisition Finance capabilities

• Drive opportunities in private equity and quasi-equity products

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Summary

• GSF has experienced exponential growth over the last 5 years

• Continue to build industry and product specialisation and diversify further geographically

• A pre-eminent global structured finance house in the sectors and geographies it has selected to compete

• The key to future success is to continue to exploit the intellectual capital of the business and leverage its competitive advantage

Goals

• Increase earnings by 15%+ pa

• Cost income ratio in the 40’s

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Copy of presentation available on

www.anz.com