Suncorp Group Limited · ASX:SUN
Suncorp — Debt Investor Presentation (August 2021)
27 slides from Suncorp's debt investor presentation, Aug 30, 2021
Slide 1: Suncorp Capital Notes 4 Investor presentation
Suncorp Capital Notes 4 Investor presentation 30 August 2021 SUNCORP GROUP LIMITED ABN 66 145 290 124 1
Slide 2: Important disclaimer
Important disclaimer This presentation has been prepared and authorised by Suncorp Group Limited (ABN 66 145 290 124) (“Suncorp”) in relation to the proposed offer by Suncorp of Suncorp Capital Notes 4 ("Capital Notes 4") to raise $350 million w ith the ability to raise more or less (the “Offer”). T
Slide 3: Agenda
Agenda Section 1 Offer summary 4 Section 2 About Suncorp 6 Section 3 Key features and risks of Capital Notes 4 14 Section 4 Offer process 20 ‒ Mandatory Conversion Appendices 24 ‒ Comparison between Capital Notes 4 and other types of investments 3
Slide 4: Section 1 Offer summary
Section 1 Offer summary 4
Slide 5: Offer summary
Offer summary Issuer – Suncorp Group Limited (Suncorp) Security – Fully paid, subordinated, perpetual, unsecured, convertible notes Offer size – $350 million with the ability to raise more or less Use of – Suncorp is issuing Capital Notes 4 to raise Eligible Additional Tier 1 Capital proceeds – Proc
Slide 6: Section 2 About Suncorp
Section 2 About Suncorp 6
Slide 7: Suncorp Group
Suncorp Group The Suncorp Group has a range of brands across Australia and New Zealand, including: Offers insurance and banking services with a heritage dating back to 1902 Insurance ASX-listed with a ~$16 billion (Australia) market capitalisation1 Approximately $97 billion in group assets2 Banking
Slide 8: Simplifying and delivering
Simplifying and delivering Completed sale of Exited several Commenced strategic Investor Strategy the Australian Life Renewed focus on our underperforming review of the Wealth Updates business core business portfolios business February 2019 August 2019 February 2020 February 2021 May ‒ June 2021 Ali
Slide 9: Corporate sustainability principles
Corporate sustainability principles Responsible Resilient people Trust and Sustainable growth financial services and communities transparency We seek to innovate and We put our customers at We respect human We are committed optimise economic, social the heart of everything we rights and invest in th
Slide 10: Full year ended 30 June 2021
Full year ended 30 June 2021 FY21 FY20 Change ($m) ($m) (%) — Cash earnings up 42.1% Insurance (Australia) 547 384 42.4 — Group NPAT up 13.1% Banking 419 248 69.0 — Ordinary final dividend of 40cps fully franked, Suncorp New Zealand 200 245 (18.4) implying an ordinary dividend payout ratio of 79.3%
Slide 11: Results highlights
Results highlights Banking returned to growth in Insurance (Australia) home lending in H2; GWP growth of 5.5% $1.1 billion turnaround vs H1 Australian consumer insurance Banking NIM up 13 basis points GWP growth of 5.6% Group expenses up 1.8% due to NZ GWP growth of 9.2% temporary uplift in strategi
Slide 12: Pro forma capital adequacy position
Pro forma capital adequacy position1 ‒ Announced capital return of approximately Pro forma Suncorp Group Pro forma $350 million, including fully franked special adjustment for Pro forma as at $ million Total as at adjustments on-market share 30 June 20215 dividend of $103 million (8cps) and on- 30 J
Slide 13: Capital instruments
Capital instruments 30 June 2021 Semi-annual Regulatory Accounting coupon rate / GI Bank SGL capital balance margin above Optional call / 90 day BBSW exchange date Issue date $ million $ million $ million $ million $ million AAIL Subordinated Debt1 320 bps Oct 2022 Oct 2016 330 - - 330 329 SGL Subor
Slide 14: Section 3 Key features and risks of Capital Notes 4
Section 3 Key features and risks of Capital Notes 4 14
Slide 15: Capital Notes 4 key features
Capital Notes 4 key features General Issuer – Suncorp Group Limited (Suncorp) Security – Fully paid, subordinated, perpetual, unsecured, convertible notes Offer size – $350 million, with the ability to raise more or less Issue Price – $100 per Capital Note 4 – In a winding-up of Suncorp, Capital Not
Slide 16: Capital Notes 4 key features: Distributions
Capital Notes 4 key features Distributions – Distributions are discretionary, non-cumulative, floating rate payments and are expected to be fully franked1 – Distributions are scheduled to be paid quarterly in arrears, subject to no Payment Condition existing Distributions – the first Distribution Pa
Slide 17: Capital Notes 4 key features: events and conversion
Capital Notes 4 key features Summary of events that Issue Date Potentially may affect Capital Notes 4 Optional Exchange Date Mandatory Conversion Date 23 September Perpetual 2021 Each Distribution Payment 17 June 2028 17 September 2028 15 December 2028 17 December 2030 Date after 17 December 2030 If
Slide 18: Ranking of Capital Notes 4 in a winding-up
Ranking of Capital Notes 4 in a winding-up1,2 Type Illustrative examples Liabilities preferred by law including employee Higher ranking Preferred and secured debt entitlements and secured creditors Unsubordinated and unsecured debt Bonds and notes, trade and general creditors Suncorp Wholesale Subor
Slide 19: Capital Notes 4 key risks
Capital Notes 4 key risks ‒ Capital Notes 4 are not deposit or policy liabilities of Suncorp or any member of the Suncorp Group, are not protected accoun ts under the Banking Act or protected policies under the Insurance Act, and are not guaranteed by any government or other person ‒ The price at wh
Slide 20: Key risks associated with an investment in Capital Notes 4
Capital Notes 4 key features Key risks associated with an investment in Capital Notes 4 – Capital Notes 4 are not deposit or policy liabilities of Suncorp or any member of the Suncorp Group, are not protected accounts under the Banking Act or protected policies under the Insurance Act, and are not g
Slide 21: Offer structure
Offer structure – The Offer is for the issue of Capital Notes 4 with an Issue Price of $100 per Capital Notes 4 to raise approximately $350 million with the ability to raise more or less Offer size – The final size of the Offer will depend on the outcome of the Bookbuild and the Securityholder Offer
Slide 22: Key dates
Key dates1 Key dates for the Offer Date Record date for determining Eligible Securityholders (7:00pm, Sydney time) 24 August 2021 Lodgement of Prospectus with ASIC 30 August 2021 Bookbuild to determine the Margin On or before 6 September 2021 Announcement of the Margin On or before 6 September 2021
Slide 23: Contact directory
Contact directory Suncorp Treasurer Simon Lewis +61 7 3362 4037 Executive Manager, Capital Funding & Instruments Greg Volz +61 2 7911 5802 Head of Investor Relations Andrew Dempster +61 497 799 960 Arranger Barrenjoey Capital Partners Barry Sharkey +61 2 9903 6192 Joint Lead Managers ANZ Securities
Slide 24: Appendices
Appendices 24
Slide 25: Appendix A: Mandatory Conversion
Appendix A: Mandatory Conversion – The Mandatory Conversion Date will be 17 December 2030, provided the Mandatory Conversion Conditions have been satisfied on that date. If any of the Mandatory Conversion Conditions are not satisfied on this date, then the Mandatory Conversion Date will be the next
Slide 26: Appendix A: Mandatory Conversion (cont'd)
Appendix A: Mandatory Conversion (cont’d) – A Non-Viability Trigger Event occurs where APRA has provided a written determination to Suncorp that: ‒ the conversion to Ordinary Shares or write off of Relevant Securities (including Capital Notes 4) in accordance with their te rms Non-Viability or by op
Slide 27: Appendix B: Comparison between Capital Notes 4 and other types of investments
Appendix B: Comparison between Capital Notes 4 and other types of investments 1 Suncorp Capital Notes 1, Standard term deposit Suncorp Capital Notes 4 Suncorp Ordinary Shares Capital Notes 2 and Capital Notes 3 Issuer – Suncorp-Metway Limited – Suncorp Group Limited – Suncorp Group Limited – Suncorp
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