Global Transaction Services
Carole AndersonManaging Director
Australia and New Zealand Banking Group Limited 20 July 2001
Page 2
A portfolio of transaction based growth businesses
• Financial performance
• Growth opportunities within existing portfolio
• Breakout growth options
• Goals for Global Transaction Services
Page 3
Global Transaction Services brings together…
Clearing Services
International Services
Portfolio Services
Cash Management
Trade Finance
Australia
Americas
EuropeNew Zealand
Middle East
five product groups*… …across five geographies*
* Pie charts based on relative earnings
Page 4
148151
164
120125130135140145150155160165170
Mar-00 Sep-00 Mar-01
Operating Income
46
40
54
30
35
40
45
50
55
60Profit After Tax
Mar-00 Sep-00 Mar-01
848
826825
780
800
820
840
860
880
900
58.3
50.6
52.0
46
48
50
52
54
56
58
60
62
The business has shown solid improvement over the last 3 halves...
Mar-00 Sep-00 Mar-01 Mar-00 Sep-00 Mar-01
FTE Cost Income
17% Growth
11% Growth
$m $m
%
Page 5
There is significant room for growth
IndividualProducts
IntegratedSolutions
Penetr
ati
on o
f C
IBC
ust
om
er
Base
Low
Hig
h • Increase penetration of CFS customer base
• Sell integrated solutions
• Continue to improve cost structures and service through e-enablement
Performance
& growth path
Page 6
Breakout options include new business models like outsourcing which deliver:
• Lower unit costs (variable not fixed)
• Sensitive to volume
• Technology capabilities upgraded without further investment
Page 7
Proponix…Trade processing joint venture which delivers outsource
benefits and dividends on the investment
Segmentationof functions
Middle Office
• Delivery• Relationship
management• Branding• Customisation
Front Office
Outsourced toVenture
• Product pricing• Risk
management• Segment
Management• Syndication
•Doc exam• Payments•Operations• Messaging
• Operational risk
Loans
Settlement
G/LDDA
Bank retained activities
Interfaces withBank back office
Back Office
Page 8
Insourcing from our customers to create new revenue streams...
ReceivePO
ProcessPO
Shipgoods
SellerProcesspayment
Match Close A/RGenerateinvoice
CreateAR
Disputeresolution
Receivables Process
…capturing more of the value chain, embedded in customer processes
Page 9
…and wholesaling relevant parts of our core capabilities...
Transaction Processing
AccountServicing
General Ledger Accounting
Customer Accounts
Transaction Capture
Liquidity Management
Non-BankFinancial
Institutions
OtherBanks
Utilities Corporates
…providing scale (new customers and transaction volume) without sales and service costs
Page 10
…which will underpin our futurebusiness growth
ROELow High
Low
High
Mark
et
Gro
wth
PortfolioServices
TradeFinance
CMTS
InternationalPayments
ClearingServices
Present
Future
* Bubbles are indicative of relative earnings contribution
Page 11
Summary
• GTS is well placed to deliver strong growth
• Our areas of strong & sustainable competitive advantage are in Trade and Cash Management
• Growth will come from:
– Improving penetration of CFS franchise
– e-enablement & product integration
– New business models like• Wholesaling txn services• Proponix• Insourcing
Goals• Double earnings
by 2005• Cost Income
ratio comfortably in the 40’s