Transcript John McFarlane/Philip Gentry

Competing in tomorrow’s
world…
Presentation to AIBF Industry Forum
7 March 2001
John McFarlane
Chief Executive Officer
Australia and New Zealand Banking Group Limited
Forces shaping corporations of the future
Capital markets
Liberalisation
• Increasing scale,
mobility and
integration of the
world’s capital
market
• Increasing
deregulation
across national
borders and
within nations’
industries
• Unprecedented
transparency
Digital technology
• Increasing ability to leverage knowledge
across physical borders, decreasing
relevance of physical assets
Beyond consolidation - Specialisation
Fragmentation .. . to
consolidation
USA
EUROPE
AUSTRALIA
ASIA
. . . and
specialisation
Leading
leading
to to
globalisation
globalisation
Specialists have been more successful
Schwab
Market/
Book
Ratio
4
MBNA
Lloyds TSB
Specialists
Amex
Santander
Macquarie
CBA
WBC
ANZ
StGeorge
NAB
Geographic
incumbents
Global Mega Players
Citigroup
Bank of America
Geographic
integrators
1
20
Book Equity
50
Tobins ‘Q’: the market valuing intangibles
Ratio of market value to asset replacement value of S&P 500
Increase in the
relative value of
intangible assets
such as:
2.0
1.5
• Talented people
1.0
• Ways of working
Mean
• Knowledge
0.5
0
Source:
• Brand
1945
McKinsey & Company
1995
• Reputation
A new leadership model
Strong best practice
performance
Intangible wealth creation
• Leadership and people
development
• Best global capital
markets practices
• Best practice
management
• Cost and continuous
improvement
• Performance
management and
accountability
Intellectually
intelligent
…AND...
• Open communication with
teamwork/empowerment
• Accountable mindset
• Vision and values driven
• Co-creative
• Flexible, responsive
Emotionally
intelligent
Winning the war for talent
Great company
Great jobs
Values and culture
58
Freedom and autonomy 56
Well managed
50
51
Company has exciting
challenges
38
Job has exciting
challenges
38
Strong performance
29
Career advancement
and growth
Industry leader
21
Fit with boss I admire
29
Many talented people
20
Good at development
17
Inspiring mission
16
Fun with colleagues
11
Job security
8
Great
company
Great
jobs
Compensation
and lifestyle
Compensation and lifestyle
Differentiated compensation
29
High total compensation
23
Geographical location
19
Respect for lifestyle
14
Acceptable pace/stress
1
ANZ’s aspiration
Grow
Perform
Positioned in growth markets
A high performing company,
exceeding expectations
• Actively managed portfolio
• Annual investment in
growth ideas
• Higher than peer revenue
growth
•
•
•
•
•
Revenue growth
Cost leadership
Risk mitigation
EPS
ROE
AND
Breakout
More dynamic than competitors
•
•
•
•
•
High P/E rating
Performance culture
Lean and agile
The ebank with a human face
A breakout mentality
Performance and growth and breakout
PE Ratio
30
25
20
Improve EPS
and higher PE
sacrifice EPS to
build P/E
15
Share price
curves
10
sacrifice P/E to
achieve EPS
5
EPS %
0
0
2
4
6
8
10
12
14
16
18
20
The evolution of perform and grow
and breakout
• Build the
foundation
• Earned the support
of the market
• Create a breakout
mentality
• Deliver on the
fundamentals
• Identify growth
opportunities
• Create a strong
performance culture
• Invest to grow
• Out execute in a
different game
The approach we’ve taken
Desires of
ANZ’s people
Ideal ANZ
performance
culture
Gap
Current ANZ
performance
culture
Performance
culture change
program
Today
Mindsets
ANZ – the eBank with a human face
• Put our customers first with an experience that delights
• Focus on creating value for our shareholders
• Lead and inspire our people
• Breakout, be bold and have the courage to be different
• Earn the trust of our people and the community
The ANZ way Perform, grow and breakout
• Customer first, shareholder value, community
• Perform, specialise, grow, stretch,
• Energy, passion, bold, opportunity, breakout
• Lean, agile, etransform, accountable, well-managed, no
surprises
• Lead, inspire, open, trust, freedom, recognition, team, fun
The material in this presentation is general background information about the Bank’s 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
Philip Gentry
Head of Investor Relations
ph: (613) 9273 4185
fax: (613) 9273 4091
email: [email protected]
Copy of presentation
available on
www.anz.com