Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — Investor Presentation (February 2004)
32 slides from Bank Of Queensland's investor presentation, Feb 24, 2004
Slide 1: ) | ee
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Slide 2: Important notice
Important notic This presentation is supplied to you in confidence for the purposes of enabling you to evaluate the Offers and determine whether or not you wish to apply for a firm allocation of Ordinary Shares and/or Series 1 Reset Preference Shares (“S1RPS’). This presentation must not be reproduc
Slide 3: Investor eligibility and US distribution restrictions
This presentation is being provided to you as an investor to whom a disclosure document is not required to be given under Chapter 6D of the Corporations Act, and in accepting this document you warrant that you are such an investor. This presentation may not be taken or transmitted in the United Stat
Slide 4: David Liddy, Managing Director; Robert Hines, Chief Financial Officer
David Liddy, Managing Director Robert Hines, Chief Financial Officer
Slide 5: Agenda
— Capital Raisings — Highlights of 2003 — Our Performance to Date — FY 2004 Outlook —~ Equity Placement Timetable
Slide 6: Capital Raisings
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Slide 7: Placement of Ordinary Shares
Placement of Ordinary Shares « Aninstitutional bookbuild to raise up to $50m, underwritten to $30m « Placement is underwritten by ABN AMRO Rothschild « The shares issued under the placement will rank equally with all other shares for any interim dividend declared for the Half Year ending 29 February
Slide 8: Placement of Preference Shares
mmar) Placement of Preference Shares « A $40m placement of Series 1 Reset Preference Share (S1RPS) on the same terms and ranking equally with existing S1RPS program (see Summary Terms of Issue attached in Appendix) = Will be unlisted for at least 12 months from this placement, notwithstanding that t
Slide 9: Placement of Reset Preference Shares (cont'd)
Placement of Reset Preference Shares (cont’) « Placement conducted by institutional bookbuild = Holdings will be via uncertificated, issuer sponsored sub- register managed by Computershare «= The S1RPS placement will be arranged by Macquarie Equity Capital Markets = The placements of ordinary shares
Slide 10: Bank of Queensland is raising additional new capital
e ¢ u( Bank of Queensland is raising additional new capital to maintain its Total Capital and Tier 1 targets The need for additional capital is as a result of significant growth in its asset portfolios Assets have continued to grow strongly At 31 January 2004, assets under management were $10.8b com
Slide 11: Highlights of the year ended 31 August 2003
Slide 12: A record full year profit of $44.7m (up 56%)
A record full year profit of $44.7m (up 56%) An improved 64.9% cost to income ratio (from 71.3%) Assets under management of $8.7bn (up 32%) EPS (Diluted) 57.1¢ (up 46%) Increased full year dividend to 37¢ per share (up 28%) 22 more branches opened to further expand distribution Low level of impaired
Slide 13: Full year income statement summary
Net Interest Income 109.2 132.7. Non Interest Income 64.7 81.6 26% Total Income 173.9 214.3 23% Total Expenses 124.0 139.0 12% Underlying Profit 49.9 75.3 51% Bad Debts 9.3 11.7 26% Profit Before Tax 40.6 63.6 57% Income Tax 11.9 18.9 59% Net Profit After Tax 28.7 044.7 8% Earnings Per Share 39¢ 57¢
Slide 14: Our Performance to Date
Slide 15: Approvals growth for months ended January
94% increase 5 mths ended 31 Jan 03 5 mths ended 31 Jan 04 The period ended 31 January 2004 includes approvals relating to the UFJ Finance acquisition in October 2003.
Slide 16: Loans under management by category
At 31 Aug 03 At 31 Jan 04 @ Housing © Business @ Consumer ii Leasing Loans under management includes approximately $1.0b of assets relating to the UFJ Finance acquisition in October 2003. Excluding UFJ Finance, LUM have increased 15% in 5 months. 6
Slide 17: Risk weighted assets
WiC NAICN @ ie 31 Aug 03 31 Jan 04 Risk weighted assets at 31 January 2004 includes approximately $1.0b of risk weighted assets relating to the UFJ Finance acquisition in October 2003. 17
Slide 18: Queensland population and housing market growth
. Queensland's population grew by 2.3 % in 2002/03, 1.4% higher than the rest of the country « Total population grew by 85,800 people on previous year » Net annual migration to Queensland is forecast at 51,300 in 2004 increasing to 64,000 in 2006 » Over 3 years to June 2006, Brisbane’s median house
Slide 19: Capital ratios pre and post capital raising
» Our target range for capital is 10%-11% (Tier 1 of 7%-8%) » Based on risk weighted assets at 31 January 2004 » Assumes raising of $50m in Ordinary Shares (underwritten to $30m) and $40m of S1RPS 3% 14% » ° on | 11.9 im 10.7% 12 10% - a | 6% 4 %- 31 Aug 03 Pre Feb 04 Capital Post Feb 04 Capital Rai
Slide 20: Queensland branch rollout on schedule
» Qld branch rollout on schedule: Forecast | Forecast 31 Aug | 31 Aug | 29 Feb | 31 Aug 02 03 04 04 58 58 58 58 Owner Managed 40 62 74 78 Corporate Branches TOTAL 98 120 132 136 « Asset quality maintained « Core banking system on track to be implemented at 31 March 2004 «= Moodys recently upgraded t
Slide 21: Interstate expansion
int » Interstate expansion will be the cornerstone of our growth strategy « Recent acquisitions complement this strategy » By 31 August 2004 we will have commenced our interstate expansion « Weare targeting a minimum of 100 branches across NSW and Victoria by 31 August 2006 » Well advanced in rollou
Slide 22: UFJ Finance acquisition
In 2003 Bank of Queensland acquired UFJ Finance, an equipment financier (now renamed BOQ Equipment Finance) This business has been successfully integrated and combined with the BOQ leasing business Performance has been above expectations with sales up on the prior comparable period More than $2m in
Slide 23: ATM Solutions acquisition
In 2003 Bank of Queensland also acquired ATM Solutions This business has also been successfully integrated The number of active ATMs has increased from 1,022 to 1,350 in the first quarter of the 2004 FY This is an increase of 32% in the number of ATMs The number of transactions has increased 53% sin
Slide 24: FY 2004 Outlook
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Slide 25: Half-year net profit and full year guidance
Half-year net profit after tax: « We expect to achieve an interim result in line with analysts forecasts « Analysts are forecasting NPAT within a range of $26.0m to $28.5m (excluding outliers) » Continue to target 70% dividend payout ratio We can reaffirm our full year financial guidance of: » EPS g
Slide 26: FY2004 priorities
Consolidate our Qld market position — Continue strong growth in lending and deposits ~ Maintain credit quality ~ Complete 2004 planned branch network expansion ~ Expand our business banking capability Implement new core banking system _ Initiate PEP II leveraging off the new platform (PEP | delivere
Slide 27: The person2person bank
The “person2person bank” Big small bank, not a small big bank The leading regional bank People focused Target to be writing 5% of the national home loan market in 3-5 years (currently 2.5%) Key provider to SME market 27
Slide 28: Equity Placement Timetable
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Slide 29: Timetable 2004
Timetable 2004 Trading halt 24 February Conference call for investors and analysts 24 February Bookbuild (Ordinary and S1RPS) 24 February Share price set for placement (Ordinary and S1RPS) 24 February Allocations notified 25 February Lift trading halt 25 February Investors to return signed allocatio
Slide 30: Appendix
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Slide 31: Summary terms of issue: S1RPS placement
enaix — x mi imm. ill The Placement Securities are issued subject to the terms and conditions of the BOQ Series 1 Reset Preference Shares (“S1RPS Terms and Conditions”). A copy of the S1RPS Terms and Conditions is annexed to BOQ’s announcement to ASX on 3 October 2003 and can viewed at www.boq.com.a
Slide 32: S1RPS exchange terms
Exchange: Each S1RPS shail be exchanged for a number of Ordinary Shares as calculated by dividing the Face Value of each S1RPS by 97.5% of the volume weighted average of the sale prices at which Ordinary Shares were sold on ASX over the 20 Trading Days prior to the relevant date for exchange. Exchan
Bank of Queensland — Investor Presentation (February 2004) on 6ix