Suncorp Group Limited · ASX:SUN
Suncorp — Suncorp-Metway — Debt Investor Presentation (May 2008)
28 slides from Suncorp's debt investor presentation, May 6, 2008
Slide 1: Suncorp-Metway Ltd CPS Offer
For personal use only Suncorp-Metway Ltd CPS Offer May 2008
Slide 2: Important Notice
Important Notice Suncorp-Metway Limited (ABN 66 010 831 722, AFSL 229 882) ("Suncorp") is the proposed issuer of the Suncorp convertible preference shares ("CPS") . Suncorp is not liable for the content of this presentation. For personal use only This presentation was prepared by Suncorp and contain
Slide 3: Agenda
Agenda For personal use only 1. CPS Offer summary 2. Suncorp at a glance and Group structure 3. Financial performance 4. CPS key terms 5. Bookbuild and syndicate details 3
Slide 4: Transaction overview
Transaction overview For personal use only Summary • Suncorp-Metway Limited (Suncorp) is seeking to raise up to $325 million from an issue of convertible preference shares (CPS) with the ability to accept oversubscriptions for up to $75 million (Offer) • CPS are fully paid preference shares in the c
Slide 5: Offer summary
Offer summary Issuer • Suncorp-Metway Limited For personal use only Security • Convertible preference shares (CPS) Offer Size • Up to $325 million, with the ability to accept oversubscriptions for up to $75 million Issue Price • $100 per CPS Regulatory • Non-innovative Residual Tier 1 Capital • Pref
Slide 6: Agenda
Agenda For personal use only 1. CPS Offer summary 2. Suncorp at a glance and Group structure 3. Financial performance 4. CPS key terms 5. Bookbuild and syndicate details 6
Slide 7: Suncorp at a glance
Suncorp at a glance For personal use only • Group total assets in excess of $92b • Approximately 7 million customers • Australia’s third largest general insurance group with annual gross written premium of over $6b • Australia’s sixth largest bank with banking assets of over $69b • Strong wealth man
Slide 8: Group structure
Group structure Simplified Corporate Structure For personal use only Suncorp-Metway Limited Suncorp Metway Suncorp Life & Suncorp Hooker Investment Suncorp Metway Superannuation Insurance Corporation Management Insurance Limited Limited Holdings Limited Limited Limited GIO Entities & Promina Group L
Slide 9: Agenda
Agenda For personal use only 1. CPS Offer summary 2. Suncorp at a glance and Group structure 3. Financial performance 4. CPS key terms 5. Bookbuild and syndicate details 9
Slide 10: Profit contribution – six months to Dec
Profit contribution – six months to Dec 07 Profit before tax and For personal use only Promina acquisition items $616m 10
Slide 11: Lending performance
Lending performance For personal use only Bank lending assets (half year, $bn) Lending by state 50.2 45.7 41.7 Total 38.8 23.7 Other 36.5 20.8 18.5 17.2 Business 16.1 25.3 Housing* 22.4 23.8 19.6 20.8 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 * Home lending, including securitised assets 11
Slide 12: Premium revenue by product
Premium revenue by product For personal use only Gross written premium (half year, $m) Including fire services levy 3,083 3,156 90 102 Workers’ Comp 137 142 Other 334 CTP 380 Commercial 799 792 Home 700 640 1,032 1,091 Motor Dec-06 Dec-07 12
Slide 13: Wholesale funding
Wholesale funding $35bn portfolio December 2007 For personal use only Short-Term Wholesale Corporates Short-Term Wholesale $1.4bn Securitisation Insto/Semi Govt 4% RMBS Term $5.5bn $5.4bn 18% 16% Securitisation Warehouse RMBS $2.2bn 6% Short-Term Wholesale Banks $8.1bn Off Shore Private Placement 23
Slide 14: Current markets
Current markets For personal use only Impact of global credit crisis • No direct exposure to US sub-prime • Whilst the secondary impact of tightening liquidity and widening credit spreads has impacted credit markets in Australia, Suncorp is well positioned to manage through these scenarios effective
Slide 15: Capital position
Capital position For personal use only Pro-forma 30 Jun 2007 31 Dec 2007 31 Dec 2007 Target Bank Capital Adequacy 9.86% 10.84% 11.88% 10.0%-10.5% ratio Bank ACE 5.05% 4.54% 4.69% 4.5%-5.0% GI MCR Coverage* 2.02x 1.99x 2.07x 1.53x The pro-forma 31 Dec 2007 calculation includes the impact of the 65% u
Slide 16: Credit ratings
Credit ratings For personal use only Suncorp-Metway Ltd Provisional Highlights Long Term Short Term Outlook CPS Rating Upgraded to A+ March 2007 Standard & Rating and positive A+ A-1 Positive A- Poor’s outlook affirmed March 2008 Moody’s Bank Upgraded to Aa3 Aa3 P-1 Stable A2 Deposits May 2007 Senio
Slide 17: Agenda
Agenda For personal use only 1. CPS Offer summary 2. Suncorp at a glance and Group structure 3. Financial performance 4. CPS key terms 5. Bookbuild and syndicate details 17
Slide 18: CPS key terms
CPS key terms For personal use only Issuer • Suncorp-Metway Limited (Suncorp) • Convertible preference shares (CPS) Security • Fully-paid convertible preference shares in the capital of Suncorp Issue price • $100 per CPS • CPS do not have a fixed maturity date Term • However, CPS will mandatorily co
Slide 19: Dividends
Dividends For personal use only Floating Rate • Dividends are preferred, non-cumulative, based on a floating rate and are expected to be fully franked Franked • Dividends will be grossed up for any shortfall in franking Dividends • Dividends are scheduled to be paid at the end of each quarterly Divi
Slide 20: Mandatory Conversion
Mandatory Conversion • Suncorp must convert all CPS on issue at the Mandatory Conversion Date, subject to the Mandatory Conversion For personal use only Mandatory Conditions, into a variable number of ordinary shares. Holders will receive $101.01* worth of ordinary shares per Conversion CPS (based o
Slide 21: Exchange or Resale
Exchange or Resale For personal use only • Prior to a possible Mandatory Conversion Date, Suncorp may choose to arrange that all CPS on issue be acquired from Holders by a third party on the possible Mandatory Conversion Date (Resale) Resale by • If Resale is chosen by Suncorp, Holders will be notif
Slide 22: Acquisition Event
Acquisition Event • Following an Acquisition Event Suncorp must, subject to obtaining prior written approval of APRA, Exchange all For personal use only CPS. Suncorp can elect to either: redeem for $100 each convert each CPS into a variable number of ordinary shares equal to the Conversion Number (s
Slide 23: Precedent transactions
Precedent transactions For personal use only Issuer • Suncorp-Metway Limited • St.George Bank Limited • Commonwealth Bank of Australia • Perpetual Exchangeable Resaleable Security • Convertible preference shares (CPS) • Converting Preference Shares (CPS II) Listed Securities (PERLS IV) ASX Code • SU
Slide 24: Agenda
Agenda For personal use only 1. CPS Offer summary 2. Suncorp at a glance and Group structure 3. Financial performance 4. CPS key terms 5. Bookbuild and syndicate details 24
Slide 25: Bookbuild process
Bookbuild process For personal use only • Institutions Participants • Syndicate Brokers • For Syndicate Brokers the Bookbuild closes 10am Tuesday 13 May 2008 Timetable • For Institutions the Bookbuild closes midday Tuesday 13 May 2008 Allocations • Bookbuild participants will be advised of firm allo
Slide 26: Summary of key dates
Summary of key dates For personal use only Event Date* Announcement of Offer and Prospectus lodged with ASIC 6 May 2008 Roadshow 7 – 8 May 2008 Bookbuild (syndicate broker bids due by 10am; institutional bids due by midday) 13 May 2008 Margin announced 14 May 2008 Offer opens 16 May 2008 Closing dat
Slide 27: Syndicate structure
Syndicate structure For personal use only Joint Lead Managers and Bookrunners Senior Co-Managers ABN AMRO Morgans Co-Managers CommSec National OnLine Trading Ord Minnett Wilson HTM 27
Slide 28: Bookbuild contacts
Bookbuild contacts For personal use only Rupert Haywood 07 3362 4019 Jackie D’Alton 07 3362 4030 Samantha Miller 07 3362 4032 Fraser Todd 02 8225 4692 Rowan Macdonald 02 8225 4357 Stuart Raynes 02 9220 1594 Peter McInnes 02 9220 7853 Cameron Duncan 02 8232 7405 Bob Herbert 03 9635 8263 Guy Foster 02
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