ANZ Term Deposit INVESTMENT STATEMENT

ANZ Term Deposit INVESTMENT STATEMENT

About this ANZ Term Deposit investment statement This document is our investment statement for ANZ Term Deposits, prepared at 29 October 2012. This document is an investment statement for the purposes of the Securities Act 1978. It sets out key information to help you decide whether to invest in our ANZ Term Deposits. When we talk about we, us and our, we mean ANZ Bank New Zealand Limited. When we talk about you, we mean the person or people opening an ANZ Term Deposit with us. 1 Important information (The information in this section is required under the Securities Act 1978.) Investment decisions are very important. They often have long term consequences. Read all documents carefully. Ask questions. Seek advice before committing yourself. Choosing an investment When deciding whether to invest, consider carefully the answers to the following questions that can be found on the pages noted below: What sort of investment is this? 2 Who is involved in providing it for me? 2 How much do I pay? 2 What are the charges? 3 What returns will I get? 4 What are my risks? 5 Can the investment be altered? 6 How do I cash in my investment? 7 Who do I contact with inquiries about my investment? 7 Is there anyone to whom I can complain if I have problems with the investment? 7 What other information can I obtain about this investment? 7 The Financial Markets Authority regulates conduct in financial markets The Financial Markets Authority regulates conduct in New Zealand s financial markets. The Financial Markets Authority s main objective is to promote and facilitate the development of fair, efficient, and transparent financial markets. For more information about investing, go to fma.govt.nz. As part of our commitment to you, this Investment Statement meets the Write Mark Plain English Standard.

What sort of investment is this? Our ANZ Term Deposits have a number of features: You invest money with us for a set period of time, called the term. You earn interest on your money at an agreed rate over the term. You can invest money in New Zealand dollars only. Our General Terms and Conditions apply to ANZ Term Deposits. You can get a copy of our General Terms and Conditions from our website, anz.co.nz, from any branch, or by phoning 0800 269 296. If there is a specific term in this investment statement that is inconsistent with anything in our General Terms and Conditions, the specific term in this investment statement will apply. 2 Who is involved in providing it for me? Our full name is ANZ Bank New Zealand Limited. We re a registered bank, and we ve been in business since 1840. We offer retail, corporate, and rural banking, and a range of investment products and services. More information about our business and our financial position is set out in our Reserve Bank Disclosure Statements. The Disclosure Statements also have information about our view of the risks we face as a registered bank, and our transactions with related parties. We must publish these documents under the Reserve Bank Act 1989. You can get a free copy, and information about our current credit rating, on our website, anz.co.nz. We have branches throughout New Zealand, and when we prepared this investment statement on 29 October 2012, our registered office address was Level 10, 170-186 Featherston Street, Wellington 6011. Our registered office address changes from time to time, and up-to-date information is on our website, anz.co.nz. Our directors change from time to time, and a list of our current directors is on our website, anz.co.nz. When we prepared this investment statement, our directors were: Antony John Carter Shayne Cary Elliott Norman Michael Thomas Geary David Duncan Hisco John Frederick Judge Michael Roger Pearson Smith How much do I pay? To open an ANZ Term Deposit you ll need to deposit the amount you want to invest with us. You can open an ANZ Term Deposit using ANZ Internet Banking, through any branch, or by phoning 0800 269 296. We may set a minimum or maximum amount that you ll need to invest. You can get current details on our website, anz.co.nz, through any branch, or by phoning 0800 269 296. You have a cooling-off period when you open or reinvest an ANZ Term Deposit You have a seven calendar day cooling-off period starting on the day that we open or reinvest your ANZ Term Deposit for you. During this cooling-off period you can cancel or change your ANZ Term Deposit in certain ways: You can cancel your ANZ Term Deposit. If you do cancel your ANZ Term Deposit, we ll repay you the money that you invested in your ANZ Term Deposit, but we won t pay you any interest that you may have earned during the cooling-off period. You can change the term of your ANZ Term Deposit. If you change the term, a different interest rate may apply. You can change the amount of money you invested in your ANZ Term Deposit, but you ll still need to meet any minimum or maximum deposit amounts we ve set.

What are the charges? We don t charge fees to open an ANZ Term Deposit. 3 If you withdraw money early from your ANZ Term Deposit, your returns will be reduced You can ask us to let you withdraw some or all of the money that you invested in your ANZ Term Deposit early. Unless you re in the cooling-off period, we don t have to agree to let you withdraw money early. Information about the cooling-off period is set out in the section How much do I pay?. If we agree to let you withdraw some or all of the money that you invested in your ANZ Term Deposit early, or if we close your ANZ Term Deposit, the returns that you get will be reduced: We ll only pay interest at the agreed rate on any amount left in your ANZ Term Deposit. We ll reduce the agreed interest rate we pay you by 3% per annum, to a minimum of 0% per annum, on the amount of money you withdraw, or if we close your ANZ Term Deposit. We ll also only pay that interest for the period of time your money was invested, up to and including the day before the money was withdrawn or your ANZ Term Deposit was closed. For example, the term of your ANZ Term Deposit was 2 years from 18 April 2012 at an agreed interest rate of 5% p.a. On 18 April 2013, we agree to let you withdraw all the money invested. We only pay you 2% p.a. interest on the money you withdraw, up to and including 17 April 2013. We will pay the reduced interest at the frequency we agreed when your ANZ Term Deposit was opened. If you withdraw all of the money invested early or we close your ANZ Term Deposit, we ll pay the reduced interest then. If we ve already paid you interest at the agreed interest rate and on the original amount you had invested in your ANZ Term Deposit, we ll deduct any extra interest we ve paid you. We will deduct this extra interest from the money that you have invested in your ANZ Term Deposit when you make your early withdrawal, or when we close your ANZ Term Deposit. We won t refund you any tax or government charges that we ve already deducted from the extra interest amount if you withdraw money out of your ANZ Term Deposit early or if we close your ANZ Term Deposit. You may be able to claim these back from Inland Revenue. We can tell you how your ANZ Term Deposit will be affected if you withdraw money from it early If we agree to let you withdraw some or all of the money that you invested in your ANZ Term Deposit early, we may also set a minimum amount that you can withdraw. You ll also need to meet any minimum or maximum deposit amounts we ve set. You can get more information about any minimum or maximum amounts we set and the effect on your ANZ Term Deposit if you withdraw some or all of the money that you invested early, at any branch, or by calling 0800 269 296. We can change the terms and conditions that apply to your ANZ Term Deposit We can add, remove, or change any of our fees or charges for ANZ Term Deposits. We can change any of the terms and conditions that apply to your ANZ Term Deposit, including any set out in this investment statement. We can also change our General Terms and Conditions. We ll publicise what s happening at least 14 days before we make any changes, and we can choose to do this in one of a number of ways: We can write to you, send you an email or a fax, or call you by phone to explain any changes. We can put up information about any changes in our branches or on our website. We can advertise any changes, for example in newspapers, or on radio or television.

What returns will I get? At the end of your ANZ Term Deposit term, we will pay you the amount you originally invested and any interest you ve earned on that amount that we haven t already paid you. ANZ Bank New Zealand Limited is the person legally responsible for paying you these amounts. 4 We ll pay you interest on the money you have invested in your ANZ Term Deposit We ll calculate and pay you interest, less any taxes or other government charges, on the amount that you have invested in your ANZ Term Deposit at the interest rate and frequency we agreed to when it was opened. We ll calculate interest beginning on the day we opened your ANZ Term Deposit, up to and including the day before the end of the term for your ANZ Term Deposit. For example, the term of your ANZ Term Deposit was 2 years from 18 April 2012. We ll calculate interest from 18 April 2012 up to and including 17 April 2014. Depending on what we ve agreed with you, we ll either deposit the interest into a New Zealand bank account or we ll add it to the amount invested in your ANZ Term Deposit. If we have agreed to add the interest you earn to the amount invested in your ANZ Term Deposit, you ll also earn interest on that amount from that point on this is called compounding interest. We ll deduct any tax or other government charges from the interest we pay you. The amount of tax will depend on the tax status and tax residency that you ve told us you have. If you don t tell us your tax status, we ll use the tax status we believe is appropriate generally this means we ll deduct tax at the highest withholding tax rate. Inland Revenue can require us to use a different tax rate than what you ve told us you have. We ll hold off paying interest or pay it on the next business day in certain situations If we re due to pay you interest or add it to the amount invested in your ANZ Term Deposit within 7 calendar days of the end of your ANZ Term Deposit term, we ll hold off doing this. Instead, we ll include this interest with your final payment at the end of your term. If we re due to pay you interest on a non-business day, we ll process the payment overnight on the next business day. Likewise, if your ANZ Term Deposit term is due to end on a non-business day, we ll process that payment overnight on the next business day. In both situations we ll only pay interest up to and including the day before the original payment date. Non-business days are Saturdays, Sundays, or New Zealand public holidays. We re not able to tell you exactly what returns you ll get We don t promise that you ll receive any particular level of returns. It s not possible for us to tell you now what your exact returns will be on your ANZ Term Deposit or when they ll be paid: Your returns depend on how much you invested and the term of your ANZ Term Deposit. Your returns depend on what interest rate applies to your ANZ Term Deposit, and how often we ve agreed to pay you interest. Your returns also depend on whether we ve agreed to pay you interest directly or add it to the amount you invested so you earn interest on those amounts. Your returns will be reduced because we deduct tax or other government charges from any interest we pay you. Your returns will be reduced if you ask us to let you withdraw some or all of the money that you have invested in your ANZ Term Deposit early or we close your ANZ Term Deposit. See the section What are the charges? above. We ll automatically reinvest your ANZ Term Deposit when its term ends Unless you tell us otherwise, we ll automatically reinvest your ANZ Term Deposit when its term ends. This new ANZ Term Deposit will have a similar term, but we ll apply the interest rate we offer for that term at the time we reinvest it. If the term would end on a non-business day when we reinvest your ANZ Term Deposit, we ll extend this term out to the next business day instead. Information about the cooling-off period that applies if we reinvest your ANZ Term Deposit is set out in the section How much do I pay?.

We have some rights to take money out of your ANZ Term Deposit or close it We can take money out of your ANZ Term Deposit, or keep any interest we haven t paid you yet, to repay any money you owe us. This is called set-off. We can also take money from your ANZ Term Deposit and pay this to a government agency or someone else if they give us a demand under certain laws or a Court order requiring us to do that. For example, if we receive a demand from Inland Revenue under certain tax laws, we must take money out of your ANZ Term Deposit to pay tax you owe. If you use a cheque to deposit money into an ANZ Term Deposit, and the cheque is dishonoured for any reason, we ll take the value of that cheque out of your ANZ Term Deposit or any other accounts you have with us. We also have some rights to refuse to let you access money invested in your ANZ Term Deposit or to close it early: We can refuse to let you access money invested in your ANZ Term Deposit if you ve breached an agreement you ve entered with us. We can refuse to pay you any amounts under your ANZ Term Deposit or close it early if we believe that you are using it or any other accounts, products, or services we ve provided you for an unlawful purpose. We also have rights to close your ANZ Term Deposit, refuse to let you access money invested in your ANZ Term Deposit, or refuse to let you complete certain transactions under our General Terms and Conditions. If we exercise any of these rights, the returns you get will be reduced. 5 What are my risks? An ANZ Term Deposit is an investment and there are some risks you need to be aware of. Carefully consider the risks below in light of your own circumstances, and get advice from your accountant, lawyer, or other financial or professional adviser before you decide whether to invest. Other than any fees or charges, and the original amount you invested, you don t have to pay any more money to us for your ANZ Term Deposit. However, there are some risks that affect whether we can or will repay you the money you invested in your ANZ Term Deposit or any interest on it: You may not be repaid the money that you invested in your ANZ Term Deposit or any interest if we become insolvent or we re placed into statutory management. If we re placed into statutory management, your rights against us will also be suspended. Insolvency happens if a company can t pay its debts when they re due. It includes liquidation, which is where a representative is appointed to control the company s assets and sell them to repay people the company owes money to. Statutory management is where a government agency appoints a representative to take control and manage a company s business, usually because it is in the wider public interest to do so. More information about our risk of insolvency or being placed into statutory management is set out below. We can take money from your ANZ Term Deposit and pay this to a government agency or someone else if they give us a demand under certain laws or a Court order requiring us to do that. For example, if we receive a demand from Inland Revenue under certain tax laws, we must take money out of your ANZ Term Deposit to pay tax you owe. We can use the money that you invested in your ANZ Term Deposit or any interest we owe you to repay us money you owe us. You may receive less than you invested in your ANZ Term Deposit, if we deduct extra interest we ve paid when you withdraw some or all of the money invested early or we close your ANZ Term Deposit. More information about our risk of insolvency or being placed into statutory management Like other businesses, we re exposed to changes in the economy and general business conditions. We could suffer losses because of things like fraud, human error, or systems problems, or things outside of our control like natural disasters. Changes to law could affect our business, or someone could bring legal action against us. As a bank, we re also exposed to some specific risks. We could be affected by changes in financial markets here and overseas. There is also a risk that our customers won t pay us back money we lend them. Or, we won t have enough money to pay others because there is a gap between when we receive money, and when we have to pay it.

6 If we don t manage these risks, it could affect our financial performance, reputation and solvency. We believe that these risks would need to be extreme before we would become insolvent. However, if we become insolvent or we re placed into statutory management our assets may not be enough to pay everyone s claim, including your ANZ Term Deposit. More information about our business and our financial position is set out in our Reserve Bank Disclosure Statements. The Disclosure Statements also have information about our view of the risks we face as a registered bank, and our transactions with related parties. We must publish these documents under the Reserve Bank Act 1989. You can get a free copy, and information about our current credit rating, on our website, anz.co.nz. What happens if we are insolvent? ANZ Term Deposits are debts that we owe that are unsecured and unsubordinated. This means that we don t guarantee you ll be repaid the money you invested, or any interest on it. The money you invested in your ANZ Term Deposit won t be repaid first out of any property or assets we own. If we become insolvent, or we re placed into statutory management, you don t have to pay money to anyone else. However, your right to be repaid the money you invested in your ANZ Term Deposit and any interest on it will rank behind anyone who has taken security for debts we owe them. Your right to be repaid will also rank behind anyone the law has given priority to, like employees or Inland Revenue. Your right to be repaid the money you invested in your ANZ Term Deposit and any interest on it will rank equally with anyone else who has unsecured, unsubordinated debts. Your right to be repaid the money you invested and any interest on it will rank ahead of anyone who has agreed their debts will be repaid after other people we owe money to. Australia and New Zealand Banking Group Limited, our ultimate parent company, doesn t stand behind or guarantee us, and ANZ Term Deposits aren t investments or deposits with them. So, Australia and New Zealand Banking Group Limited has no responsibility to pay you any money you invested in your ANZ Term Deposit or any interest on it. Can the investment be altered? You can only make certain changes during the term of your ANZ Term Deposit You can cancel or change your ANZ Term Deposit during the cooling-off period more information is set out below. Outside the cooling-off period, you can ask us to let you withdraw some or all of the money early that you have invested in your ANZ Term Deposit. We don t have to agree to let you withdraw money early, but if we do, the returns you get on your ANZ Term Deposit will be reduced see the section What are the charges?. You can contact us at any time during the term of your ANZ Term Deposit to change the account we pay any interest to. You can also change the account we pay any amounts in your ANZ Term Deposit into at the end of its term. We may ask you to sign a form to confirm the account you want your interest or your ANZ Term Deposit paid to before we make any changes. You have a cooling-off period when you open or reinvest an ANZ Term Deposit You have a seven calendar day cooling-off period starting on the day we open or reinvest your ANZ Term Deposit for you. During this cooling-off period you can cancel or change your ANZ Term Deposit in certain ways: You can cancel your ANZ Term Deposit. If you do cancel your ANZ Term Deposit, we ll repay you the money you invested in your ANZ Term Deposit, but we won t pay you any interest you may have earned during the cooling-off period. You can change the term for your ANZ Term Deposit. If you change the term, a different interest rate may apply. You can change the amount of money you invested in your ANZ Term Deposit, but you ll still need to meet any minimum or maximum deposit amounts we ve set.

We can only make certain changes to your ANZ Term Deposit We won t change the interest rate or how we pay interest for your ANZ Term Deposit without your agreement, unless you withdraw money early or ask us to change your ANZ Term Deposit during the cooling-off period. However, we can close your ANZ Term Deposit at any time if the money you have invested in it drops below any minimum amount we ve set. We also have some rights to refuse to let you access money invested in your ANZ Term Deposit or to close it early: We can refuse to let you access money invested in your ANZ Term Deposit if you ve breached an agreement you ve entered with us. We can refuse to pay you any amounts under your ANZ Term Deposit or close it early if we believe that you are using it or any other accounts, products, or services we ve provided you for an unlawful purpose. We also have rights to close your ANZ Term Deposit, refuse to let you access money invested in your ANZ Term Deposit, or refuse to let you complete certain transactions under our General Terms and Conditions. If we exercise any of these rights, the returns you get will be reduced. We can also add, remove or change any of our fees or charges for ANZ Term Deposits, and change our General Terms and Conditions at any time. 7 How do I cash in my investment? You can only cancel or change your ANZ Term Deposit during the cooling-off period more information is set out in the section How much do I pay?. You can ask us to let you withdraw early some or all of the money that you have invested in your ANZ Term Deposit. We don t have to agree to let you withdraw money early, but if we do, the returns you get on your ANZ Term Deposit will be reduced see the section What are the charges?. You can not transfer or sell your ANZ Term Deposit to someone else. Who do I contact with inquiries about my investment? If you need more information about your ANZ Term Deposit, see our website, anz.co.nz, ask our staff at any branch, or phone 0800 269 296. Is there anyone to whom I can complain if I have problems with the investment? For any problems with your ANZ Term Deposit, talk to our staff at any branch, phone our Customer Feedback line 0800 560 555, or send us a complaint using the form on our website, anz.co.nz. If you don t think we ve resolved your complaint, you may be able to get free independent help from the Banking Ombudsman. You can write to them at Freepost 218002, PO Box 10573, The Terrace, Wellington 6143, phone 0800 805 950, or find information on their website, bankomb.org.nz. What other information can I obtain about this investment? If you earn interest on your ANZ Term Deposit over a certain level we set, we ll send you an annual certificate setting out the amount of interest you earned, and any tax we deducted from this interest. More information about our business and our financial position is set out in our Reserve Bank Disclosure Statements. The Disclosure Statements also have information about our view of the risks we face as a registered bank, and our transactions with related parties. We must publish these documents under the Reserve Bank Act 1989. You can get a free copy, and information about our current credit rating, on our website, anz.co.nz. You can also ask for a free copy of our most recent Reserve Bank Disclosure Statement through any branch. Free copies of our financial statements are also available on the Companies Office website, business.govt.nz/ companies, or by phoning the Companies Office on 0508 266 726. You can also ask our staff at any branch to send you other information about your ANZ Term Deposit or us, free, including our most recent annual report or the most recent investment statement for ANZ Term Deposits.

anz.co.nz ANZ Bank New Zealand Limited 10/12 13411